LOUISVILLE, Ky. — Kentuckians will soon be able to place their first in-person sports bets.
Six months after the legislature passed sports wagering, and Governor Andy Beshear signed the bill into law, so now brick and mortar locations will start accepting sports bets Sept. 7.
Officials have estimated the state could pull in $23 million a year in tax revenue from the business. Analyst Steve Bittenbender with BetKentucky called that a "conservative estimate."
"I think odds are good Kentucky can get more, you just have to take a look at what's happening in Indiana and Ohio," he said.
Bittenbender said Kentuckians could end up spending as much as $2 or $2.3 billion annually on sports wagers, though he noted the tracks and retail locations opening Thursday won't see all of that business.
"Probably about 90% of that or so will come from these online accounts," he said.
The state's licensed online sports books won't take bets until Sept. 28.
Bittenbender expects online betting trends to impact state tax revenue, pointing to the increasing popularity of parlay bets, which carry bigger stakes.
"That's generating a lot of revenue for sports betting operators and in turn that's helping generate more tax revenue for those states," he said.
Bittenbender added Kentucky college football matchups this week also likely won't be huge spends for gamblers. He said the bigger betting push will likely come in the spring.
“It’s a little unfortunate its launching the same week UK is playing EKU and Louisville is playing Murray State. Those games are not attractive to sports books because they’re considered such lopsided affairs," he said. "I expect a very brisk basketball market and come March Madness that’s probably going to be the peak time of the year.”
"If Kentucky wins the NCAA basketball championship in April that's going to have a significant impact on the amount of revenue," Bittenbender added.
Over the next few weeks, Bittenbender said online sports books, along with state partners, will likely use the next few weeks for testing. He said because so many of the providers approved in Kentucky are familiar names nationwide, they should be prepared for the late September rollout.
While online betting won't be available Thursday, some online providers will allow customers to pre-deposit money into their accounts.
Thursday, Sept. 7, Beshear will cast a ceremonial first bet at Churchill Downs.
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