Kentucky OKs fixed-odds horse wagering; Churchill Downs won’t

Kentucky’s legislature enacted House Bill 904 on April 14 after lawmakers overrode Gov. Andy Beshear’s veto. The law allows racetracks to offer fixed-odds horse wagering once the Kentucky Horse Racing and Gaming Corporation issues regulations. Because the Legislature did not include an emergency clause, the law takes effect about 90 days after the session ends, likely in mid-July. Regulators have indicated platforms could appear next year if rulemaking proceeds quickly.

HB 904 updates pari‑mutuel rules and allows tracks to contract with service providers to sell fixed prices on horses. The bill also requires upgrades to totalizer systems so odds boards update faster and mandates that all wagering types close at the same time. Lawmakers cited concerns about computer‑assisted wagering accounts that place large bets near post time and can change payouts for other bettors.

Pari‑mutuel pools take a percentage of the betting pool, commonly called takeout, before paying winners. Takeout rates typically range from about 15% to 25% and fund purses and track operations. Fixed‑odds betting locks a price for the bettor when the wager is placed; operators set the price and can incur losses if payouts exceed receipts.

Churchill Downs Inc., which operates Churchill Downs in Louisville, Turfway Park and Ellis Park, issued a brief statement declining to offer fixed‑odds wagering at any of its racetrack properties. The company has long supported pari‑mutuel wagering as the primary model for its tracks.

Rep. Michael Meredith, a sponsor of HB 904, said conversations with industry participants who visited international racing markets influenced the decision to include fixed‑odds language. He said lawmakers hoped the option could attract younger bettors and allow new products if tracks partner with sportsbook providers. “We saw it as a way of maybe getting the younger generation to be more excited about horse racing,” Meredith said.

The law does not require tracks to adopt fixed odds. Other Kentucky operators such as Keeneland, Kentucky Downs, The Red Mile, Cumberland Run and the Revolutionary Racing project could choose to offer fixed‑odds if regulators write rules and commercial partners are available. Historical horse racing products were introduced in Kentucky before some large operators later embraced them.

Fixed‑odds wagering will not be available for this year’s Kentucky Derby, which will remain a pari‑mutuel event. Regulators must set technical standards for faster totalizer updates and determine how fixed‑odds offerings will coexist with existing pools. Until those rules are finalized, tracks can prepare commercial arrangements and technology plans but cannot accept fixed‑price bets.