[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"blog-article-kentucky-sports-betting-tax-en":3,"mdc-wcgqcf-key":69},{"id":4,"slug":5,"status":6,"section":7,"category":8,"author":9,"publish_date":10,"read_time":11,"image":12,"embedded_components":13,"related_calculators":13,"related_articles":14,"title":15,"description":16,"keywords":17,"content":26,"faq":27,"availableLocales":64},"098037b9-f311-4ad8-b50f-81083e0b9d47","kentucky-sports-betting-tax","published","betting","guides","Evgeniy Volkov","2026-03-23",16,"\u002Fimages\u002Fblog\u002Fkentucky-sports-betting-tax.webp","[]",[],"Kentucky Sports Betting Tax: Rates & Calculator (2026)","Kentucky sports betting tax 2026: flat 4% state + 24% federal. HB 551 rules, \\$600 threshold, W-2G guide. Free calculator.",[18,19,20,21,22,23,24,25],"kentucky sports betting tax","kentucky gambling tax","kentucky gambling tax calculator","kentucky sports betting tax rate","do you pay taxes on sports betting in kentucky","kentucky sports betting tax exemptions","kentucky gambling winnings tax","kentucky betting tax 2026","# Kentucky Sports Betting Tax: Complete Guide to Rates, Rules & Filing (2026)\n\nPicture this: you're at Keeneland with your buddies during the fall meet, and your \\$50 FanDuel parlay on three NFL games just hit — a \\$3,000 payout. The app lights up, everyone's high-fiving, but then the thought creeps in: **how much of this does Uncle Sam and the Commonwealth of Kentucky actually take?**\n\nThe quick math: after Kentucky's 4% state tax and federal taxes, a \\$3,000 win leaves you roughly \\$2,160–\\$2,760 depending on your federal bracket. But here's what the government websites won't tell you — the \\$600 reporting rule, deduction strategies, and the new HB 904 proposal could change your actual tax bill significantly.\n\nKentucky legalized sports betting on June 29, 2023 under HB 551, making it the 37th state to offer legal wagering. If you've been using [offshore sportsbooks before Kentucky legalized](\u002Fblog\u002Fis-offshore-sports-betting-legal), switching to regulated books means W-2G reporting, guaranteed payouts, and state gaming commission protection. Since then, FanDuel, DraftKings, BetMGM, and Caesars have launched in the Bluegrass State — and every single dollar you win is taxable. This is the most complete Kentucky sports betting tax guide for 2026, with a free calculator, real examples (including Churchill Downs horse racing wins), and answers to every tax question Kentucky bettors are asking.\n\n## TL;DR — Kentucky Sports Betting Tax Quick Reference\n\n### Key Numbers Every Kentucky Bettor Needs\n\n| Detail | Amount \u002F Rule |\n|--------|---------------|\n| **Kentucky State Income Tax** | 4% flat rate on all gambling winnings |\n| **Federal Withholding** | 24% on net wins over \\$5,000 |\n| **Operator Tax (Retail)** | 9.75% on adjusted gross revenue |\n| **Operator Tax (Online)** | 14.25% on adjusted gross revenue |\n| **Local\u002FCity Tax** | None — Kentucky has no municipal gambling tax |\n| **W-2G Threshold (Sports)** | \\$600 at 300:1+ odds |\n| **W-2G Threshold (Slots)** | \\$1,200 |\n| **Resident Filing Form** | Kentucky Form 740 |\n| **Nonresident Filing Form** | Kentucky Form 740-NP |\n| **Filing Deadline** | April 15 (matches federal) |\n| **Legal Since** | June 29, 2023 (HB 551) |\n\nNow that you have the key numbers, let's break down exactly how Kentucky's sports betting tax works — including the operator tax that indirectly affects your odds, the \\$600 rule that confuses everyone, and the HB 904 proposal that could reshape the entire market in 2026.\n\n## Kentucky Gambling Tax Rates for Players (2026)\n\nKentucky's tax system is refreshingly simple compared to states like [New Jersey](\u002Fblog\u002Fnew-jersey-gambling-tax) with its progressive brackets. But \"simple\" doesn't mean you can ignore it. Even international jurisdictions like [Spain use progressive IRPF rates](\u002Fblog\u002Fis-gambling-legal-in-spain) from 19% to 47% — making Kentucky's 4% look like a bargain.\n\n### The Flat 4% State Income Tax: How It Works\n\nKentucky charges a **flat 4% income tax** on all income — salary, investments, and gambling winnings. This rate has been in effect since January 1, 2024, when Kentucky completed its transition from a graduated system (previously 2%–5%) to a single flat rate under HB 8 (2022).\n\nThe flat 4% applies regardless of:\n\n- Your total income level\n- The type of gambling (sports betting, horse racing, casino, lottery)\n- Whether you won online or at a physical location\n- Whether you're in Louisville, Lexington, or rural Appalachia\n\nThe simplicity is actually an advantage. Unlike [Oklahoma's graduated 0.25%–4.75% brackets](\u002Fblog\u002Foklahoma-gambling-tax) or [Illinois' 4.95% flat rate](\u002Fblog\u002Fillinois-sports-betting-tax) with its complicated per-wager fees, Kentucky gives you one clean number: **multiply your net winnings by 0.04.**\n\n### What Gets Taxed: Sports Betting, Horse Racing, Casino, Lottery\n\nEvery form of gambling income is taxable in Kentucky at the same 4% rate. Horse racing deserves special attention — this is Kentucky, after all.\n\n| Gambling Type | State Tax Rate | W-2G Trigger | Notes |\n|---------------|:--------------:|:------------:|-------|\n| **Sports betting** | 4% | \\$600 at 300:1+ | FanDuel, DraftKings, BetMGM, Caesars |\n| **Horse racing** | 4% | \\$600 at 300:1+ | Churchill Downs, Keeneland, Ellis Park, Turfway Park |\n| **Casino slots** | 4% | \\$1,200 | No commercial casinos yet — historical racing terminals |\n| **Table games** | 4% | None (exempt) | Limited to social\u002Fcharity gaming |\n| **Poker tournaments** | 4% | \\$5,000 net | Charity poker rooms, tribal events |\n| **Kentucky Lottery** | 4% | \\$600 | Powerball, Mega Millions, Keno, scratchers |\n| **Daily fantasy sports** | 4% | \\$600 | DraftKings, FanDuel (DFS contests) |\n\nKentucky is unique because **horse racing is the backbone of the state's gambling industry.** Churchill Downs (home of the Kentucky Derby), Keeneland, Ellis Park, and Turfway Park generate billions in annual wagers. Every win at the track — from a \\$2 exacta to a six-figure Pick 6 — is taxable at 4% state plus your federal rate. The same \\$600\u002F300:1 W-2G threshold used for sports betting applies to horse racing payouts.\n\n### No City or Local Gambling Taxes in Kentucky\n\nUnlike [Illinois where Chicago adds its own 10.25% operator tax](\u002Fblog\u002Fillinois-sports-betting-tax), Kentucky has **no city or local gambling taxes**. Louisville, Lexington, and every other Kentucky city — zero additional tax on gambling winnings.\n\nThis is a genuine advantage. An \\$8,000 win in Louisville costs you exactly the same in state taxes as an \\$8,000 win in rural Paducah. No geolocation surprises, no city surcharges, no per-wager fees.\n\n### How Kentucky Compares to Neighboring States\n\nKentucky sits in the moderate range for state gambling tax burden — but your neighbor's rate matters if you cross state lines for sports or horse racing:\n\n| State | State Tax Rate | Player Withholding | Key Difference |\n|-------|:--------------:|:------------------:|----------------|\n| **Tennessee** | 0% (no income tax) | None | No state tax on gambling |\n| **Indiana** | 3.05% flat | None automatic | Cheapest taxing neighbor |\n| **Ohio** | 0%–3.5% graduated | 4% | Lower for most bettors |\n| **Kentucky** | **4% flat** | **None automatic** | **You are here** |\n| **Illinois** | 4.95% flat | None automatic | Higher + per-wager fees |\n| **Virginia** | 2%–5.75% graduated | 4% | Higher for most brackets |\n| **West Virginia** | 6.5% flat | 6.5% | Highest flat rate neighbor |\n| **Missouri** | 0%–4.8% graduated | — | [Launched Dec 2024 — full MO guide](\u002Fblog\u002Fmissouri-sports-betting-news) |\n\nNote: states like [Idaho have no income tax but also ban sports betting constitutionally](\u002Fblog\u002Fis-gambling-legal-in-idaho) — so the 0% rate doesn't help if you can't bet legally.\n\nFor a \\$10,000 win: you'd pay \\$400 in Kentucky, \\$305 in Indiana, \\$0 in Tennessee, or \\$495 in Illinois (plus Illinois' per-wager fees). Tennessee residents betting at Kentucky tracks still owe Kentucky tax on KY-sourced wins and file Form 740-NP. For bettors in nearby states still waiting for legalization, our [Georgia sports betting guide](\u002Fblog\u002Fgeorgia-sports-betting) covers the legal alternatives available right now. Meanwhile, [Vermont charges a 20% operator tax on sports betting revenue](\u002Fblog\u002Fvermont-sports-betting) — significantly higher than Kentucky's 9.75-14.25% range, yet the Green Mountain State's small market still attracts major operators.\n\n## Kentucky Sports Betting Operator Tax (HB 551)\n\nThe operator tax doesn't come out of your pocket directly — but understanding it explains why Kentucky's odds and promotions compare the way they do.\n\n### Retail vs Online Operator Tax Rates (9.75% \u002F 14.25%)\n\nHB 551 established a two-tier operator tax on **adjusted gross revenue** (AGR = total wagers minus payouts):\n\n| Channel | Tax Rate | Who Pays | Where |\n|---------|:--------:|----------|-------|\n| **Retail** | 9.75% | Track-based operators | Churchill Downs, Keeneland sportsbooks |\n| **Online\u002FMobile** | 14.25% | Licensed platforms | FanDuel, DraftKings, BetMGM, Caesars |\n\nThe 14.25% online rate is moderate nationally — lower than Illinois' 20–40% progressive scale, lower than New York's 51%, but higher than Indiana's 9.5%. The retail rate (9.75%) reflects Kentucky's desire to keep horse racing tracks competitive.\n\n### How Operator Taxes Affect Your Odds\n\nYou don't pay the 9.75% or 14.25% directly, but operators don't absorb costs silently:\n\n1. **Line shading** — operators may widen spreads slightly to increase their hold percentage\n2. **Promotion adjustments** — Kentucky gets moderate promotional offers compared to lower-tax states like Indiana or Ohio\n3. **Market health** — Kentucky's moderate rates have attracted all major operators (unlike high-tax states where some operators have exited)\n\nThe good news: Kentucky's operator tax is competitive enough to maintain a healthy market. All four major sportsbooks (FanDuel, DraftKings, BetMGM, Caesars) operate actively in the state. Compare lines using an [odds converter](\u002Fbetting\u002Fodds-converter) — Kentucky lines are generally competitive with neighboring markets.\n\n::chart-kentucky-sports-betting-tax\n::\n\n## Federal Gambling Tax in Kentucky — The 24% Rule\n\nFederal tax is the bigger bite for most Kentucky gamblers. It works identically in every state, but understanding how it stacks with Kentucky's 4% makes the full picture clear.\n\n### When Federal Tax Is Withheld Automatically\n\nFederal 24% withholding kicks in when your **net win** (winnings minus wager) exceeds \\$5,000. The sportsbook, casino, or lottery terminal withholds 24% automatically and issues a W-2G.\n\nCrucial distinction: the \\$5,000 threshold is for *withholding*, not *reporting*. You owe federal tax on ALL gambling winnings regardless of amount. The sportsbook just doesn't withhold automatically on smaller wins.\n\n### W-2G Thresholds by Game Type\n\n| Game Type | W-2G Threshold | 24% Federal Withholding | Kentucky Notes |\n|-----------|:--------------:|:-----------------------:|----------------|\n| **Sports betting** | \\$600 at 300:1+ odds | Over \\$5,000 net | FanDuel, DraftKings |\n| **Horse racing** | \\$600 at 300:1+ odds | Over \\$5,000 net | Churchill Downs, Keeneland |\n| **Slot machines** | \\$1,200 | Over \\$5,000 net | Historical racing terminals |\n| **Keno** | \\$1,500 | Over \\$5,000 net | Kentucky Lottery Keno |\n| **Poker tournaments** | \\$5,000 net | Over \\$5,000 net | Charity poker rooms |\n| **Table games** | None (exempt) | Cash transaction reporting | Limited availability in KY |\n| **Lottery** | \\$600 | Over \\$5,000 net | Powerball, scratchers |\n\nIf you've ever had a [hand pay at a casino](\u002Fblog\u002Fhand-pay-casino), you've experienced the W-2G process — the attendant verifies your ID, fills out the form, and withholds applicable taxes. In Kentucky, this most commonly happens at historical horse racing (HHR) terminals at tracks and off-track betting facilities.\n\n### The \\$600 Rule: Do You Pay Tax Under \\$600?\n\nThis is the #1 question Kentucky bettors get wrong. Let's be crystal clear:\n\n**YES — you owe tax on ALL gambling winnings, including those under \\$600.**\n\nThe \\$600\u002F300:1 threshold is only for W-2G **form issuance** — it determines when the sportsbook sends a tax form to you and the IRS. It is NOT a tax-free threshold.\n\n#### Why Wins Under \\$600 Are Still Taxable\n\nThe IRS is explicit: gambling winnings of any amount must be reported as \"Other Income\" on Schedule 1 of Form 1040. Kentucky mirrors this — all winnings flow into your Kentucky taxable income on Form 740.\n\nWhat happens practically:\n\n- **Win \\$500 on FanDuel** — no W-2G issued, but you owe ~\\$20 KY state tax + federal tax on that \\$500\n- **Win \\$50 on a Kentucky Lottery scratcher** — still taxable income, report it\n- **Win \\$200 on a horse race** — taxable, even though the track doesn't issue a W-2G\n\nThe IRS relies on you to self-report these amounts. They may not catch every \\$50 win — but if you get audited, unreported gambling income is one of the first things they look for. And Kentucky's Department of Revenue receives data from licensed sportsbooks about ALL payouts, not just W-2G amounts.\n\n### 24% Withholding vs Your Actual Federal Rate\n\nThe 24% withheld is a *prepayment*, not your final rate. If your total income puts you in the 22% bracket, you'll get 2% back as a refund. If you're in the 32% bracket, you owe 8% more at filing time.\n\n#### Federal Tax Brackets for Gambling Income (2025–2026)\n\nGambling winnings are taxed as **ordinary income** on your federal return. Your bracket depends on total income:\n\n| Federal Bracket (Single Filer) | Rate |\n|--------------------------------|:----:|\n| \\$0 – \\$11,925 | 10% |\n| \\$11,926 – \\$48,475 | 12% |\n| \\$48,476 – \\$103,350 | 22% |\n| \\$103,351 – \\$197,300 | 24% |\n| \\$197,301 – \\$250,525 | 32% |\n| \\$250,526 – \\$626,350 | 35% |\n| \\$626,351+ | 37% |\n\nMost Kentucky bettors earning a typical salary (\\$40K–\\$80K) fall into the 12%–22% bracket. That means the 24% withheld on large wins will result in a partial refund. For detailed federal nuances, see our guide to [gambling loss deduction rules](\u002Fblog\u002Fnew-tax-law-gambling-losses).\n\n## Tax Calculation Examples: What You Actually Keep\n\nTheory is useful, but let's run real numbers for three common Kentucky gambling scenarios.\n\n### Example 1: \\$2,000 FanDuel Win (Kentucky Resident)\n\n**Scenario:** Kentucky resident in Lexington, \\$55,000 salary, wins \\$2,000 on a FanDuel NFL parlay (\\$100 bet at 20:1 odds).\n\n| Item | Amount |\n|------|-------:|\n| Gross Win | \\$2,000 |\n| W-2G Required? | No (\\$2,000 > \\$600 but odds 20:1 \u003C 300:1) |\n| Federal Withholding at App? | No (net win \\$1,900 \u003C \\$5,000) |\n| Kentucky State Tax (4%) | \\$80.00 |\n| Federal Tax (22% bracket) | \\$440.00 |\n| **Total Tax** | **\\$520.00** |\n| **Net Payout** | **\\$1,480.00** |\n| **Effective Tax Rate** | **26.0%** |\n\nNo automatic withholding happens — you owe the \\$520 at filing time. Track it in your records because FanDuel won't send a W-2G for this win (odds below 300:1).\n\nUse our [gambling loss calculator](\u002Fcasino\u002Floss-calculator) to track losses that could offset this win.\n\n### Example 2: \\$8,000 DraftKings Win (Kentucky Resident)\n\n**Scenario:** Louisville resident, \\$75,000 salary, hits an \\$8,000 payout on a DraftKings same-game parlay (\\$25 bet at 320:1 odds).\n\n| Item | Amount |\n|------|-------:|\n| Gross Win | \\$8,000 |\n| W-2G Required? | Yes (\\$8,000 > \\$600 at 320:1 > 300:1) |\n| Federal Withholding (24% of \\$7,975 net) | \\$1,914.00 |\n| Kentucky State Tax (4%) | \\$320.00 |\n| Federal Tax (24% bracket, actual) | \\$1,914.00 |\n| **Cash Received from DraftKings** | **\\$6,086.00** |\n| **Additional KY Tax at Filing** | **\\$320.00** |\n| **Total Tax (Federal + State)** | **\\$2,234.00** |\n| **Final Net** | **\\$5,766.00** |\n| **Effective Tax Rate** | **27.9%** |\n\nDraftKings withholds 24% federal automatically but does NOT withhold Kentucky's 4%. You owe the \\$320 state tax when you file Form 740. The W-2G goes to both the IRS and the Kentucky Department of Revenue — they will know about this win.\n\nPlan your bankroll for sessions with our [session simulator](\u002Fcasino\u002Fsession-simulator).\n\n### Example 3: \\$25,000 Horse Racing Win at Churchill Downs (Nonresident)\n\n**Scenario:** Indiana resident at Churchill Downs for the Kentucky Derby, hits a \\$25,000 Pick 6 (\\$20 wager at 1,250:1 odds).\n\n| Item | Amount |\n|------|-------:|\n| Gross Win | \\$25,000 |\n| W-2G Required? | Yes (\\$25,000 > \\$600 at 1,250:1 > 300:1) |\n| Federal Withholding (24%) | \\$6,000 |\n| Kentucky State Tax (4%) | \\$1,000 |\n| Indiana State Tax (3.05%) | \\$762.50 |\n| Credit for KY Tax Paid | -\\$762.50 |\n| **Net Indiana Tax** | **\\$0** |\n| **Cash at Track** | **\\$19,000** |\n| **Additional KY Tax at Filing** | **\\$1,000** |\n| **Total Tax** | **\\$7,000** |\n| **Final Net** | **\\$18,000** |\n| **Effective Tax Rate** | **28.0%** |\n\n#### Cross-State Credit Calculation\n\nAs an Indiana resident winning in Kentucky:\n\n1. **At Churchill Downs:** Federal 24% withheld automatically\n2. **File Kentucky Form 740-NP:** Report \\$25,000 KY-sourced income, pay 4% (\\$1,000)\n3. **File Indiana IT-40:** Report \\$25,000, calculate Indiana tax (\\$762.50 at 3.05%)\n4. **Claim credit:** Indiana gives you a credit for taxes paid to Kentucky — but only up to the Indiana tax amount (\\$762.50)\n5. **Net result:** You pay the HIGHER of the two state rates (Kentucky's 4%) plus federal\n\nSince Kentucky's rate (4%) exceeds Indiana's rate (3.05%), the Indiana credit covers your full Indiana liability. You effectively pay Kentucky's rate. If you were a Tennessee resident (no income tax), you'd owe Kentucky 4% with no home-state credit available.\n\n::inline-kentucky-sports-betting-tax-calculator\n::\n\n## How to File Kentucky Gambling Taxes\n\nFiling gambling taxes in Kentucky requires coordinating federal and state returns. Here's the step-by-step process.\n\n### Step 1: Gather W-2G Forms and Records\n\nCollect every W-2G received during the tax year. Online operators (DraftKings, FanDuel, BetMGM) provide these in the Tax Documents section of your account. Also gather:\n\n- Win\u002Floss statements from Kentucky tracks (Churchill Downs, Keeneland, Turfway Park)\n- Online platform annual win\u002Floss statements\n- Personal gambling log (dates, platforms, amounts)\n- Kentucky Lottery win records\n\n### Step 2: Complete Federal Form 1040 (Schedule 1)\n\nReport total gambling winnings on **Schedule 1, Line 8b** (Other Income). This flows to Form 1040, Line 8. If you itemize deductions, gambling losses go on **Schedule A, Line 16** (up to the amount of your winnings).\n\n### Step 3: File Kentucky Form 740 (Residents) or 740-NP (Nonresidents)\n\n**Kentucky residents:** File Form 740. Kentucky starts with your federal AGI — gambling income automatically flows through. The 4% tax applies to your entire Kentucky taxable income including gambling winnings.\n\n**Nonresidents:** File Form 740-NP. Report only Kentucky-sourced gambling income — wins at Churchill Downs, Keeneland, Kentucky sportsbooks, or from apps used while physically in Kentucky.\n\n#### Deducting Gambling Losses on Kentucky Taxes\n\nKentucky follows federal rules for gambling loss deductions:\n\n- Losses deductible **only up to the amount of gambling winnings**\n- Must **itemize** on Form 740 (cannot use standard deduction and claim losses)\n- Keep contemporaneous records: date, venue\u002Fplatform, game type, amounts\n- Online platform win\u002Floss statements are accepted but a personal log strengthens your position\n- Horse racing losses from Churchill Downs or Keeneland count — save those losing tickets\n\nOur [bet tracker](\u002Fbetting\u002Fbet-tracker) helps maintain the documentation Kentucky requires for loss deductions. For professional gamblers, understanding how to [make a living from sports betting](\u002Fblog\u002Fcan-you-make-a-living-off-sports-betting) includes mastering tax implications on Schedule C.\n\n### Kentucky Sports Betting Tax Exemptions\n\nLet's address the \"kentucky sports betting tax exemptions\" search directly: **there are no special exemptions for sports betting winnings in Kentucky.**\n\nAll gambling winnings are taxable as ordinary income. The only way to reduce your gambling tax bill is:\n\n1. **Deduct losses** by itemizing (up to the amount of your winnings)\n2. **Contribute to retirement accounts** (401k, IRA) to reduce AGI\n3. **Claim the standard deduction** if it exceeds your itemized deductions (but then you lose the gambling loss deduction)\n\nThere is no \\$600 \"exemption\" — that's a reporting threshold, not a tax break.\n\n## HB 904: Proposed Changes Coming to Kentucky (2026)\n\nThe Kentucky sports betting landscape may shift significantly if HB 904 passes. This March 2026 proposal is the biggest potential change since legalization.\n\n### Raising the Betting Age to 21\n\nHB 904's most controversial provision would raise the legal sports betting age from 18 to 21, aligning Kentucky with the drinking age and most casino gambling age requirements. Currently, Kentucky is one of the few states allowing 18-year-olds to bet on sports.\n\nIf passed, this would take effect immediately and require sportsbooks to reverify all existing accounts. Estimates suggest 50,000–80,000 active 18–20-year-old accounts could be affected.\n\n### Potential Tax Structure Changes\n\nHB 904 also proposes restructuring operator taxes, though specific new rates are still being debated. The bill's language suggests:\n\n- Potentially equalizing the retail (9.75%) and online (14.25%) rates\n- Possible increase in online operator rates to fund responsible gambling programs\n- No changes to the 4% personal income tax rate on gambling winnings\n\n### What This Means for Current Bettors\n\nFor individual bettors, HB 904 would NOT change your personal tax rate — the 4% flat rate is set by Kentucky's broader tax code, not the sports betting statute. The main impacts would be:\n\n- **Age 18–20 bettors:** Would lose access to legal sportsbooks\n- **All bettors:** Possible reduction in promotions if operator costs increase\n- **Market health:** Could reduce total betting volume, affecting line availability\n\nAs of March 2026, HB 904 passed the Kentucky House and is under Senate review. Check the Kentucky Legislature website for the latest status. Understanding [who sets the odds](\u002Fblog\u002Fwho-sets-the-odds-for-sports-betting) helps you evaluate how legislative changes flow through to the lines you see.\n\n## Penalties for Not Reporting Kentucky Gambling Income\n\nThe Kentucky Department of Revenue takes unreported gambling income seriously — they receive copies of every W-2G issued at Kentucky tracks, casinos, and online platforms.\n\n### Kentucky Department of Revenue Penalty Table\n\n| Violation | Penalty | Additional |\n|-----------|---------|------------|\n| **Late payment** | 2% per month (max 20%) | Plus interest at statutory rate |\n| **Late filing** | 2% per month (max 20%) | Plus interest |\n| **Underpayment of estimated tax** | Annualized penalty | If owed > \\$500 |\n| **Failure to file** | 20% of tax due + \\$100 | After 60 days |\n| **Negligence** | 20% of underpaid tax | Per Department audit |\n| **Civil fraud** | 50% of underpaid tax | Most severe penalty |\n| **Interest rate (2026)** | 7% annually | Compounded daily |\n\n### The 3 Most Expensive Kentucky Tax Mistakes\n\n**Mistake 1: Thinking wins under \\$600 are tax-free.** The \\$600\u002F300:1 W-2G threshold is just a reporting trigger. You owe 4% Kentucky tax + federal tax on EVERY dollar of gambling winnings — including that \\$200 horse racing payout at Keeneland that didn't generate a W-2G.\n\n**Mistake 2: Not tracking horse racing wins and losses.** Kentucky bettors wager heavily on horse racing, especially during Derby Week, Breeders' Cup, and the spring\u002Ffall Keeneland meets. The Department of Revenue knows that Kentucky residents are active horse bettors — if your return shows zero gambling income but you have an ADW (Advance Deposit Wagering) account with TwinSpires, expect scrutiny.\n\n**Mistake 3: Ignoring cross-platform totals.** If you bet on FanDuel, DraftKings, BetMGM, and TwinSpires — each platform tracks independently. You might have \\$1,400 in wins on each (below W-2G threshold per platform) but owe tax on the combined \\$5,600. Track everything with a [bet tracking tool](\u002Fbetting\u002Fbet-tracker).\n\n#### Why Horse Racing Wins Are a Common Audit Trigger\n\nKentucky is the **horse racing capital of the world.** The Department of Revenue knows this. Horse racing payouts — particularly exotic bets like exactas, trifectas, Pick 4s, and Pick 6s — frequently exceed the \\$600\u002F300:1 W-2G threshold because of the high odds involved.\n\nA \\$2 trifecta that pays \\$1,800 at 900:1 odds generates a W-2G. If you don't report it, the Department already has the form. Churchill Downs and Keeneland issue thousands of W-2Gs annually during peak racing seasons.\n\nCheck [house edge data](\u002Fcasino\u002Fhouse-edge-calculator) to understand your expected costs before wagering.\n\n## Kentucky vs Other States: Sports Betting Tax Comparison\n\n### State-by-State Betting Tax Comparison Table\n\n| State | Player Tax Rate | Operator Tax | Per-Wager Fee | Key Difference |\n|-------|:--------------:|:------------:|:-------------:|----------------|\n| **Kentucky** | **4% flat** | **9.75–14.25%** | **None** | **Moderate rate, no local taxes** |\n| Tennessee | 0% (no income tax) | 20% | None | Best for players, high operator tax |\n| Indiana | 3.05% flat | 9.5% | None | [Cheapest taxing neighbor](\u002Fblog\u002Fcan-you-make-a-living-off-sports-betting) |\n| Ohio | 0%–3.5% graduated | 20% | None | Lower for most income levels |\n| Illinois | 4.95% flat | 20–40% | \\$0.25–\\$0.50 | [Higher rate + per-wager fees](\u002Fblog\u002Fillinois-sports-betting-tax) |\n| Virginia | 2%–5.75% graduated | 15% | None | Higher for most brackets |\n| West Virginia | 6.5% flat | 10% | None | Highest flat rate in region |\n| New Jersey | 1.4%–10.75% | 13–19.75% | None | [Progressive brackets](\u002Fblog\u002Fnew-jersey-gambling-tax) |\n| Pennsylvania | 3.07% flat | 36% | None | Low player, high operator |\n| Colorado | 4.4% flat | 10% | None | [Similar flat rate, low operator tax](\u002Fblog\u002Fcolorado-sports-betting-tax) |\n\nKentucky's 4% flat rate puts it squarely in the middle of the pack regionally. The absence of per-wager fees (unlike Illinois) and local taxes makes Kentucky's total gambling tax burden predictable and moderate. Compare this to [Mississippi's flat 5% gambling tax](\u002Fblog\u002Fmississippi-online-sports-betting), which applies to all casino and sportsbook winnings at a single rate. For bettors near the Tennessee border, the zero-state-tax advantage is significant — but Tennessee's 20% operator tax means fewer promotions. For those evaluating whether [gambling legalization trends](\u002Fblog\u002Fmaine-online-gambling) in other states matter, Kentucky's moderate approach has become a template for newer markets. By contrast, [Hawaii hasn't legalized any form of sports betting](\u002Fblog\u002Fhawaii-sports-betting) despite multiple legislative attempts, and [sports betting in Oklahoma remains stalled](\u002Fblog\u002Foklahoma-sports-betting) by tribal compact negotiations — meaning Kentucky bettors who travel south have no legal sportsbook options across the border.\n\n\n\nKentucky taxed its way into legal sports betting in 2023; Alabama has yet to clear the constitutional hurdle. Our [is gambling illegal in Alabama](\u002Fblog\u002Fis-gambling-illegal-in-alabama) guide explains why a statewide lottery keeps failing at the ballot box.\n\n## People Also Ask",[28,31,34,37,40,43,46,49,52,55,58,61],{"answer":29,"question":30},"Yes. All sports betting winnings are taxable income in Kentucky. You owe 4% Kentucky state income tax plus federal tax (10-37% depending on your bracket). The sportsbook withholds 24% federal on net wins over $5,000 and issues a W-2G form.","Do you have to pay taxes on sports betting in Kentucky?",{"answer":32,"question":33},"Yes. The $600 threshold only triggers a W-2G reporting form — it's not a tax-free limit. ALL gambling winnings are taxable regardless of amount. You must self-report wins under $600 on your federal and Kentucky state tax returns.","Do I get taxed if I made less than $600 on a gambling site?",{"answer":35,"question":36},"Yes. The $600\u002F300:1 threshold is for W-2G form issuance, not for tax liability. Even a $50 win is taxable income. Kentucky and the IRS require you to report every dollar of gambling winnings on your return, regardless of whether you receive a W-2G.","Do you have to pay taxes on sports betting under $600?",{"answer":38,"question":39},"Yes, Kentucky has a 6% sales tax, but this does NOT apply to sports betting winnings. Gambling winnings are taxed as income at the flat 4% Kentucky income tax rate, not as a sales transaction. The 6% sales tax applies to goods and services, not gambling payouts.","Is Kentucky sales tax 6%?",{"answer":41,"question":42},"Kentucky charges a flat 4% state income tax on all gambling winnings, including sports betting. This rate applies regardless of your income level or the amount won. Federal tax (10-37%) applies on top. The combined effective rate on a $10,000 win is typically 26-28%.","What is the Kentucky sports betting tax rate?",{"answer":44,"question":45},"DraftKings withholds 24% federal tax on net wins over $5,000. DraftKings does NOT automatically withhold Kentucky's 4% state tax — you pay that at filing time on Form 740. For wins under $5,000, no automatic withholding occurs but you still owe both federal and state tax.","How much does DraftKings withhold in Kentucky?",{"answer":47,"question":48},"Yes. Kentucky follows federal rules: you can deduct gambling losses up to the amount of your winnings if you itemize deductions on Form 740. Keep detailed records of all bets with dates, amounts, and platforms. You cannot deduct more than your total winnings.","Can I deduct gambling losses on my Kentucky tax return?",{"answer":50,"question":51},"Yes. Kentucky taxes all gambling winnings earned within the state regardless of residency. Nonresidents file Form 740-NP. You can claim a credit in your home state for taxes paid to Kentucky to avoid double taxation.","Do nonresidents pay Kentucky tax on gambling winnings?",{"answer":53,"question":54},"Sports betting wins of $600 or more at odds of 300:1 or greater trigger a W-2G. Slots: $1,200. Keno: $1,500. Poker: $5,000 net. Horse racing: $600 at 300:1+. Federal 24% withholding applies on net wins over $5,000.","What are the W-2G thresholds for sports betting in Kentucky?",{"answer":56,"question":57},"HB 904 (March 2026) proposes raising the Kentucky sports betting age from 18 to 21 and restructuring operator tax rates. If passed, it could change the economics of Kentucky's sports betting market. As of March 2026, it passed the Kentucky House and is under Senate review.","What is HB 904 and how does it affect Kentucky sports betting?",{"answer":59,"question":60},"The Kentucky Department of Revenue receives copies of all W-2G forms. Penalties include 2% per month late payment penalty (max 20%), plus interest. Fraud penalties can reach 50% of underpaid tax. The Department cross-references W-2G data with Form 740 returns.","What happens if I don't report gambling winnings in Kentucky?",{"answer":62,"question":63},"Kentucky's flat 4% is higher than Indiana's 3.05% but Tennessee has no state income tax on gambling winnings. For a $10,000 win, you'd pay $400 in KY state tax vs $305 in Indiana vs $0 in Tennessee. Federal tax is the same everywhere.","How does Kentucky gambling tax compare to Tennessee and Indiana?",[65,66,67,68],"ru","en","de","tr",{"data":70,"body":71},{},{"type":72,"children":73},"root",[74,83,95,100,114,120,127,330,335,341,362,368,380,385,410,436,442,447,653,665,671,690,695,701,706,954,967,988,994,999,1005,1017,1100,1105,1111,1116,1150,1163,1167,1173,1178,1184,1196,1216,1222,1421,1434,1440,1445,1453,1465,1472,1477,1482,1515,1520,1526,1538,1544,1556,1669,1682,1688,1693,1699,1709,1854,1859,1872,1878,1887,2061,2066,2078,2084,2093,2297,2303,2308,2361,2366,2370,2376,2381,2387,2392,2415,2421,2440,2446,2456,2466,2472,2477,2517,2538,2544,2554,2559,2592,2597,2603,2608,2614,2619,2624,2630,2635,2653,2659,2664,2697,2710,2716,2721,2727,2900,2906,2916,2926,2942,2948,2960,2965,2978,2984,2990,3304,3341,3354],{"type":75,"tag":76,"props":77,"children":79},"element","h2",{"id":78},"kentucky-sports-betting-tax-complete-guide-to-rates-rules-filing-2026",[80],{"type":81,"value":82},"text","Kentucky Sports Betting Tax: Complete Guide to Rates, Rules & Filing (2026)",{"type":75,"tag":84,"props":85,"children":86},"p",{},[87,89],{"type":81,"value":88},"Picture this: you're at Keeneland with your buddies during the fall meet, and your $50 FanDuel parlay on three NFL games just hit — a $3,000 payout. The app lights up, everyone's high-fiving, but then the thought creeps in: ",{"type":75,"tag":90,"props":91,"children":92},"strong",{},[93],{"type":81,"value":94},"how much of this does Uncle Sam and the Commonwealth of Kentucky actually take?",{"type":75,"tag":84,"props":96,"children":97},{},[98],{"type":81,"value":99},"The quick math: after Kentucky's 4% state tax and federal taxes, a $3,000 win leaves you roughly $2,160–$2,760 depending on your federal bracket. But here's what the government websites won't tell you — the $600 reporting rule, deduction strategies, and the new HB 904 proposal could change your actual tax bill significantly.",{"type":75,"tag":84,"props":101,"children":102},{},[103,105,112],{"type":81,"value":104},"Kentucky legalized sports betting on June 29, 2023 under HB 551, making it the 37th state to offer legal wagering. If you've been using ",{"type":75,"tag":106,"props":107,"children":109},"a",{"href":108},"\u002Fblog\u002Fis-offshore-sports-betting-legal",[110],{"type":81,"value":111},"offshore sportsbooks before Kentucky legalized",{"type":81,"value":113},", switching to regulated books means W-2G reporting, guaranteed payouts, and state gaming commission protection. Since then, FanDuel, DraftKings, BetMGM, and Caesars have launched in the Bluegrass State — and every single dollar you win is taxable. This is the most complete Kentucky sports betting tax guide for 2026, with a free calculator, real examples (including Churchill Downs horse racing wins), and answers to every tax question Kentucky bettors are asking.",{"type":75,"tag":76,"props":115,"children":117},{"id":116},"tldr-kentucky-sports-betting-tax-quick-reference",[118],{"type":81,"value":119},"TL;DR — Kentucky Sports Betting Tax Quick Reference",{"type":75,"tag":121,"props":122,"children":124},"h3",{"id":123},"key-numbers-every-kentucky-bettor-needs",[125],{"type":81,"value":126},"Key Numbers Every Kentucky Bettor Needs",{"type":75,"tag":128,"props":129,"children":130},"table",{},[131,149],{"type":75,"tag":132,"props":133,"children":134},"thead",{},[135],{"type":75,"tag":68,"props":136,"children":137},{},[138,144],{"type":75,"tag":139,"props":140,"children":141},"th",{},[142],{"type":81,"value":143},"Detail",{"type":75,"tag":139,"props":145,"children":146},{},[147],{"type":81,"value":148},"Amount \u002F Rule",{"type":75,"tag":150,"props":151,"children":152},"tbody",{},[153,170,186,202,218,234,250,266,282,298,314],{"type":75,"tag":68,"props":154,"children":155},{},[156,165],{"type":75,"tag":157,"props":158,"children":159},"td",{},[160],{"type":75,"tag":90,"props":161,"children":162},{},[163],{"type":81,"value":164},"Kentucky State Income Tax",{"type":75,"tag":157,"props":166,"children":167},{},[168],{"type":81,"value":169},"4% flat rate on all gambling winnings",{"type":75,"tag":68,"props":171,"children":172},{},[173,181],{"type":75,"tag":157,"props":174,"children":175},{},[176],{"type":75,"tag":90,"props":177,"children":178},{},[179],{"type":81,"value":180},"Federal Withholding",{"type":75,"tag":157,"props":182,"children":183},{},[184],{"type":81,"value":185},"24% on net wins over $5,000",{"type":75,"tag":68,"props":187,"children":188},{},[189,197],{"type":75,"tag":157,"props":190,"children":191},{},[192],{"type":75,"tag":90,"props":193,"children":194},{},[195],{"type":81,"value":196},"Operator Tax (Retail)",{"type":75,"tag":157,"props":198,"children":199},{},[200],{"type":81,"value":201},"9.75% on adjusted gross revenue",{"type":75,"tag":68,"props":203,"children":204},{},[205,213],{"type":75,"tag":157,"props":206,"children":207},{},[208],{"type":75,"tag":90,"props":209,"children":210},{},[211],{"type":81,"value":212},"Operator Tax (Online)",{"type":75,"tag":157,"props":214,"children":215},{},[216],{"type":81,"value":217},"14.25% on adjusted gross revenue",{"type":75,"tag":68,"props":219,"children":220},{},[221,229],{"type":75,"tag":157,"props":222,"children":223},{},[224],{"type":75,"tag":90,"props":225,"children":226},{},[227],{"type":81,"value":228},"Local\u002FCity Tax",{"type":75,"tag":157,"props":230,"children":231},{},[232],{"type":81,"value":233},"None — Kentucky has no municipal gambling tax",{"type":75,"tag":68,"props":235,"children":236},{},[237,245],{"type":75,"tag":157,"props":238,"children":239},{},[240],{"type":75,"tag":90,"props":241,"children":242},{},[243],{"type":81,"value":244},"W-2G Threshold (Sports)",{"type":75,"tag":157,"props":246,"children":247},{},[248],{"type":81,"value":249},"$600 at 300:1+ odds",{"type":75,"tag":68,"props":251,"children":252},{},[253,261],{"type":75,"tag":157,"props":254,"children":255},{},[256],{"type":75,"tag":90,"props":257,"children":258},{},[259],{"type":81,"value":260},"W-2G Threshold (Slots)",{"type":75,"tag":157,"props":262,"children":263},{},[264],{"type":81,"value":265},"$1,200",{"type":75,"tag":68,"props":267,"children":268},{},[269,277],{"type":75,"tag":157,"props":270,"children":271},{},[272],{"type":75,"tag":90,"props":273,"children":274},{},[275],{"type":81,"value":276},"Resident Filing Form",{"type":75,"tag":157,"props":278,"children":279},{},[280],{"type":81,"value":281},"Kentucky Form 740",{"type":75,"tag":68,"props":283,"children":284},{},[285,293],{"type":75,"tag":157,"props":286,"children":287},{},[288],{"type":75,"tag":90,"props":289,"children":290},{},[291],{"type":81,"value":292},"Nonresident Filing Form",{"type":75,"tag":157,"props":294,"children":295},{},[296],{"type":81,"value":297},"Kentucky Form 740-NP",{"type":75,"tag":68,"props":299,"children":300},{},[301,309],{"type":75,"tag":157,"props":302,"children":303},{},[304],{"type":75,"tag":90,"props":305,"children":306},{},[307],{"type":81,"value":308},"Filing Deadline",{"type":75,"tag":157,"props":310,"children":311},{},[312],{"type":81,"value":313},"April 15 (matches federal)",{"type":75,"tag":68,"props":315,"children":316},{},[317,325],{"type":75,"tag":157,"props":318,"children":319},{},[320],{"type":75,"tag":90,"props":321,"children":322},{},[323],{"type":81,"value":324},"Legal Since",{"type":75,"tag":157,"props":326,"children":327},{},[328],{"type":81,"value":329},"June 29, 2023 (HB 551)",{"type":75,"tag":84,"props":331,"children":332},{},[333],{"type":81,"value":334},"Now that you have the key numbers, let's break down exactly how Kentucky's sports betting tax works — including the operator tax that indirectly affects your odds, the $600 rule that confuses everyone, and the HB 904 proposal that could reshape the entire market in 2026.",{"type":75,"tag":76,"props":336,"children":338},{"id":337},"kentucky-gambling-tax-rates-for-players-2026",[339],{"type":81,"value":340},"Kentucky Gambling Tax Rates for Players (2026)",{"type":75,"tag":84,"props":342,"children":343},{},[344,346,352,354,360],{"type":81,"value":345},"Kentucky's tax system is refreshingly simple compared to states like ",{"type":75,"tag":106,"props":347,"children":349},{"href":348},"\u002Fblog\u002Fnew-jersey-gambling-tax",[350],{"type":81,"value":351},"New Jersey",{"type":81,"value":353}," with its progressive brackets. But \"simple\" doesn't mean you can ignore it. Even international jurisdictions like ",{"type":75,"tag":106,"props":355,"children":357},{"href":356},"\u002Fblog\u002Fis-gambling-legal-in-spain",[358],{"type":81,"value":359},"Spain use progressive IRPF rates",{"type":81,"value":361}," from 19% to 47% — making Kentucky's 4% look like a bargain.",{"type":75,"tag":121,"props":363,"children":365},{"id":364},"the-flat-4-state-income-tax-how-it-works",[366],{"type":81,"value":367},"The Flat 4% State Income Tax: How It Works",{"type":75,"tag":84,"props":369,"children":370},{},[371,373,378],{"type":81,"value":372},"Kentucky charges a ",{"type":75,"tag":90,"props":374,"children":375},{},[376],{"type":81,"value":377},"flat 4% income tax",{"type":81,"value":379}," on all income — salary, investments, and gambling winnings. This rate has been in effect since January 1, 2024, when Kentucky completed its transition from a graduated system (previously 2%–5%) to a single flat rate under HB 8 (2022).",{"type":75,"tag":84,"props":381,"children":382},{},[383],{"type":81,"value":384},"The flat 4% applies regardless of:",{"type":75,"tag":386,"props":387,"children":388},"ul",{},[389,395,400,405],{"type":75,"tag":390,"props":391,"children":392},"li",{},[393],{"type":81,"value":394},"Your total income level",{"type":75,"tag":390,"props":396,"children":397},{},[398],{"type":81,"value":399},"The type of gambling (sports betting, horse racing, casino, lottery)",{"type":75,"tag":390,"props":401,"children":402},{},[403],{"type":81,"value":404},"Whether you won online or at a physical location",{"type":75,"tag":390,"props":406,"children":407},{},[408],{"type":81,"value":409},"Whether you're in Louisville, Lexington, or rural Appalachia",{"type":75,"tag":84,"props":411,"children":412},{},[413,415,421,423,429,431],{"type":81,"value":414},"The simplicity is actually an advantage. Unlike ",{"type":75,"tag":106,"props":416,"children":418},{"href":417},"\u002Fblog\u002Foklahoma-gambling-tax",[419],{"type":81,"value":420},"Oklahoma's graduated 0.25%–4.75% brackets",{"type":81,"value":422}," or ",{"type":75,"tag":106,"props":424,"children":426},{"href":425},"\u002Fblog\u002Fillinois-sports-betting-tax",[427],{"type":81,"value":428},"Illinois' 4.95% flat rate",{"type":81,"value":430}," with its complicated per-wager fees, Kentucky gives you one clean number: ",{"type":75,"tag":90,"props":432,"children":433},{},[434],{"type":81,"value":435},"multiply your net winnings by 0.04.",{"type":75,"tag":121,"props":437,"children":439},{"id":438},"what-gets-taxed-sports-betting-horse-racing-casino-lottery",[440],{"type":81,"value":441},"What Gets Taxed: Sports Betting, Horse Racing, Casino, Lottery",{"type":75,"tag":84,"props":443,"children":444},{},[445],{"type":81,"value":446},"Every form of gambling income is taxable in Kentucky at the same 4% rate. Horse racing deserves special attention — this is Kentucky, after all.",{"type":75,"tag":128,"props":448,"children":449},{},[450,477],{"type":75,"tag":132,"props":451,"children":452},{},[453],{"type":75,"tag":68,"props":454,"children":455},{},[456,461,467,472],{"type":75,"tag":139,"props":457,"children":458},{},[459],{"type":81,"value":460},"Gambling Type",{"type":75,"tag":139,"props":462,"children":464},{"align":463},"center",[465],{"type":81,"value":466},"State Tax Rate",{"type":75,"tag":139,"props":468,"children":469},{"align":463},[470],{"type":81,"value":471},"W-2G Trigger",{"type":75,"tag":139,"props":473,"children":474},{},[475],{"type":81,"value":476},"Notes",{"type":75,"tag":150,"props":478,"children":479},{},[480,506,530,554,579,604,629],{"type":75,"tag":68,"props":481,"children":482},{},[483,491,496,501],{"type":75,"tag":157,"props":484,"children":485},{},[486],{"type":75,"tag":90,"props":487,"children":488},{},[489],{"type":81,"value":490},"Sports betting",{"type":75,"tag":157,"props":492,"children":493},{"align":463},[494],{"type":81,"value":495},"4%",{"type":75,"tag":157,"props":497,"children":498},{"align":463},[499],{"type":81,"value":500},"$600 at 300:1+",{"type":75,"tag":157,"props":502,"children":503},{},[504],{"type":81,"value":505},"FanDuel, DraftKings, BetMGM, Caesars",{"type":75,"tag":68,"props":507,"children":508},{},[509,517,521,525],{"type":75,"tag":157,"props":510,"children":511},{},[512],{"type":75,"tag":90,"props":513,"children":514},{},[515],{"type":81,"value":516},"Horse racing",{"type":75,"tag":157,"props":518,"children":519},{"align":463},[520],{"type":81,"value":495},{"type":75,"tag":157,"props":522,"children":523},{"align":463},[524],{"type":81,"value":500},{"type":75,"tag":157,"props":526,"children":527},{},[528],{"type":81,"value":529},"Churchill Downs, Keeneland, Ellis Park, Turfway Park",{"type":75,"tag":68,"props":531,"children":532},{},[533,541,545,549],{"type":75,"tag":157,"props":534,"children":535},{},[536],{"type":75,"tag":90,"props":537,"children":538},{},[539],{"type":81,"value":540},"Casino slots",{"type":75,"tag":157,"props":542,"children":543},{"align":463},[544],{"type":81,"value":495},{"type":75,"tag":157,"props":546,"children":547},{"align":463},[548],{"type":81,"value":265},{"type":75,"tag":157,"props":550,"children":551},{},[552],{"type":81,"value":553},"No commercial casinos yet — historical racing terminals",{"type":75,"tag":68,"props":555,"children":556},{},[557,565,569,574],{"type":75,"tag":157,"props":558,"children":559},{},[560],{"type":75,"tag":90,"props":561,"children":562},{},[563],{"type":81,"value":564},"Table games",{"type":75,"tag":157,"props":566,"children":567},{"align":463},[568],{"type":81,"value":495},{"type":75,"tag":157,"props":570,"children":571},{"align":463},[572],{"type":81,"value":573},"None (exempt)",{"type":75,"tag":157,"props":575,"children":576},{},[577],{"type":81,"value":578},"Limited to social\u002Fcharity gaming",{"type":75,"tag":68,"props":580,"children":581},{},[582,590,594,599],{"type":75,"tag":157,"props":583,"children":584},{},[585],{"type":75,"tag":90,"props":586,"children":587},{},[588],{"type":81,"value":589},"Poker tournaments",{"type":75,"tag":157,"props":591,"children":592},{"align":463},[593],{"type":81,"value":495},{"type":75,"tag":157,"props":595,"children":596},{"align":463},[597],{"type":81,"value":598},"$5,000 net",{"type":75,"tag":157,"props":600,"children":601},{},[602],{"type":81,"value":603},"Charity poker rooms, tribal events",{"type":75,"tag":68,"props":605,"children":606},{},[607,615,619,624],{"type":75,"tag":157,"props":608,"children":609},{},[610],{"type":75,"tag":90,"props":611,"children":612},{},[613],{"type":81,"value":614},"Kentucky Lottery",{"type":75,"tag":157,"props":616,"children":617},{"align":463},[618],{"type":81,"value":495},{"type":75,"tag":157,"props":620,"children":621},{"align":463},[622],{"type":81,"value":623},"$600",{"type":75,"tag":157,"props":625,"children":626},{},[627],{"type":81,"value":628},"Powerball, Mega Millions, Keno, scratchers",{"type":75,"tag":68,"props":630,"children":631},{},[632,640,644,648],{"type":75,"tag":157,"props":633,"children":634},{},[635],{"type":75,"tag":90,"props":636,"children":637},{},[638],{"type":81,"value":639},"Daily fantasy sports",{"type":75,"tag":157,"props":641,"children":642},{"align":463},[643],{"type":81,"value":495},{"type":75,"tag":157,"props":645,"children":646},{"align":463},[647],{"type":81,"value":623},{"type":75,"tag":157,"props":649,"children":650},{},[651],{"type":81,"value":652},"DraftKings, FanDuel (DFS contests)",{"type":75,"tag":84,"props":654,"children":655},{},[656,658,663],{"type":81,"value":657},"Kentucky is unique because ",{"type":75,"tag":90,"props":659,"children":660},{},[661],{"type":81,"value":662},"horse racing is the backbone of the state's gambling industry.",{"type":81,"value":664}," Churchill Downs (home of the Kentucky Derby), Keeneland, Ellis Park, and Turfway Park generate billions in annual wagers. 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