1. Slot Machines For Home Use

Video slots will cost twice that or more, and you’ll sometimes have the option of upgrading to a new LCD monitor when buying a video slot machine. Those are expensive, too–$400 or $500. Other upgrades you can pay for include stereo sound packages, coin in coin out functionality, and/or backlit reels (on mechanical or electro-mechanical.

Kentucky online casino players bet with no fear of prosecution, but in an unregulated offshore gambling industry. The Bluegrass State is famed for its racetracks, the biggest and best in the USA, and of course for the signature Kentucky Derby. The state has a long history of gambling, with Newport a center for mob-based gambling operations during the first half of the 20th century. The state now has a very mixed approach to gambling, soft at the edges but with a rock hard core.

The law tends to focus on organizers, promoters and providers of illegal gambling, rather than penalizing players, in fact there are apparently specific provisions in place to protect mere players from prosecution. Social gambling is accepted within certain defined parameters although there are not specific areas of statute law devoted to the issue, and yet there is little in the way of state sanctioned organized gambling – there are no casinos, or licensed poker rooms in Kentucky.
Local boy Kurt Jewell from Frankfort made good in 2010, taking down the largest event in WSOP Circuit history at a Chicago event, besting a poker tournament field of 872 players to win the first prize of $242,909.

Kentucky Gambling History

The history of gambling in Kentucky is much livelier than current circumstance might have you believe. The Cleveland Syndicate was a major organized crime outfit who began to work Kentucky during prohibition. Gambling and illegal casinos were their secondary focus, emerging during the 1930s on the back of a major bootlegging operation. The same group was also heavily involved in the development of gambling in Las Vegas.

For a fully detailed and lovingly crafted account of the history of illegal gambling from 1920 to 1970 in Kentucky, consult the excellent “When Vice Was King” by Jim Linduff [1].

The Letter of the Law

The law takes a stern approach to anyone running unregulated gambling in the state, encouraging every peace officer to “endeavor, to the best of his ability, to detect and prosecute all gamblers and others violating the laws against gaming” according to Gaming Law Masters, who offer their usual highly detailed guide to the state’s laws here [2].

It might sound from the above as if players participating in unlicensed gambling events would face prosecution, but it appears that this is not the case. Elsewhere in the same document, Gaming Law Masters quote the following comment which accompanied changes to statute seen in 2009 “The status of a ‘player’ shall be a defense to any prosecution under this chapter”. Promotion of gambling, keeping of gambling records, and gambling with a minor are all criminal offenses, however.

Of course, with such a thriving horseracing scene, there are plenty of regulations surrounding this industry, including rules governing illegal tampering with games and various other matters. The document above provides a full breakdown.

Legal Online Gambling in Kentucky

The status of online gambling in Kentucky is rather interesting. While there are no specific statutes outlawing such activity, there are other indications that the state does not smile on internet wagering.

While it seems that Kentucky is much more concerned with going after providers of gambling than player participants, boy does it go after those providers. In a case running over five years, the state attempted to seize hundreds of online gambling domain names, apparently prompted by fears that online gambling within the state would deprive Kentucky’s precious horse racing industry of revenue.

Although it is not entirely clear who has settled out of court, and who still faces further haranguing from the state, Governor Steve Beshear has recently announced gains to the state of Kentucky of over $6 million in direct relation to these ongoing legal actions. Sites targeted in the initial action include major poker sites PokerStars, FullTilt Poker, Absolute Poker and Ultimate Bet. Further information on the latest development in this curious case can be found in this report [3].

The one clear exception to all of this is horse racing, as the state recently began to allow online pari-mutuel wagering with licensed providers. Any other online wagering, while unlikely to see you facing individual prosecution, is certainly not approved of by the state, who are going after providers still allowing Kentucky players to register. As a result, many sites which are still relatively US friendly will not allow Kentuckians to register even for freerolls.

What Forms of Gambling Are Legal in Kentucky?

You’ve got options in the home of the Kentucky Derby, and the clear favorite amongst these it to attend one of the state’s prestigious horse racing tracks and place a wager.

If that doesn’t appeal, there are a few other possibilities.

You can buy a ticket to the state lottery [4], which has been running since 1988, with proceeds going to educational scholarship programs and other forms of educational charity.

The state also allows various forms of charitable gaming, including the rather popular charity bingo. Charities must abide by a range of regulations, and are not allowed to run slot machines or certain other forms of gaming.

Aside from that, while there are no casinos or licensed poker rooms in the state, there are still a few wagering options. There are a number of riverboat casinos which fairly border Kentucky in neighboring Indiana and Ohio, with a helpful soul having drawn up a map of the aforementioned here [5].

Your other outs include attending a home game, of which there seem to be plenty according to Poker DIY, but bear in mind that while playing is almost certainly fine under Kentucky law, running a home game is a bit more of a gray area, and at the very least you should ensure that you don’t take any kind of rake or consideration from players, and perhaps it would be best to get some legal advice before hosting games.

The state does have a number of freerolls or charity poker games running, which seem to manage to run through virtue of taking no rake, but Kentucky is unclear of the legality of gaming ventures like that. More on these can be found here [6].

Finally, there appears to be some official uncertainty over the legality of certain sweepstake style Internet gambling cafes, according to this report from BG Daily News [7]. According to this news outlet as of August 2013 officials are “researching the issue”.

The Racetracks – Legal Betting

The Kentucky Derby is by far the largest racing event in the USA, attracting hundreds of thousands each year and famed throughout the world. This helpful site [8] offers a guide to all things Derby-related, including all your (somewhat complex) wagering options. It also provides some detailed information on the official Kentucky Derby Application for mobiles, which you can find out even more about on the official Derby site [9].

A plethora of sites provide information on racing in Kentucky, as you’d expect. A couple of other solid resources include Kentucky Derby Betting, which has a lot of resources to help you navigate your wagering options, and the Kentucky Tourism, which lists all the horse racing tracks in the state. From a cursory glance there appear to be fifteen decent venues to choose between.

Recent Developments in Kentucky’s Gambling Laws

An article from 2012 by CBS Moneywatch [10] documents a gathering momentum in Kentucky lobbying for regulated casinos in the state. According to the report a coalition of business people, educators and labor representatives are pushing for legislation in support of establishing the state’s first legal casinos. Arguments being exchanged seem principally focused on whether such venues would really bring significant income to Kentucky.

The Governor has referenced plans [11] to allow statewide slot machine-type gambling, but has also stated that the casino issue will not make any progress in 2013, as it is too late for it to do so in the current legislative session. The Senate also voted against [12] such moves in 2011, by a 21-16 majority.

Despite the Governor’s comments, another senator has put forward a bill, House Bill 52, proposing that larger cities and racetracks would be able to vote over the right to run their own local casino operations, as covered in this piece from WDRB [13].

As one advocacy group gains notoriety, so do their opponents, with a group by the name of Stop Predatory Gambling Kentucky [14] launching in March 2013 to oppose any gambling expansion plans which may arise in the state.

In another story from Kentucky.com [15], Lottery board members voted unanimously to move towards selling online lottery tickets and Keno games in March of 2013. While the games make not arrive until 2015, it looks as if there is set to be a little bit more online action than previously expected in the Bluesgrass State.

Busts and Arrests

A fair few illegal gambling busts do occur in Kentucky, mostly centered on the seizing of illegal gambling machines and the usually fairly small amounts of money found in them. In this larger than average bust covered in The Times Tribunal [16], 17 machines and over $3,000 were taken by police from three locations in Williamsburg.

In another similar bust in Hillview [17], a twist to the tale was the discovery of a fellow policeman at the crime scene, engaged in play. Those in attendance received citations to appear in court, but no mention was made in this news coverage from Wave 3 News as to whether they faced any specific charges.

From what Gaming Law Masters relayed on their legal guide to Kentucky, they shouldn’t face any charges for mere attendance and play, with the weight of the law bearing down on those running the venue. Of course, for accurate legal advice of any kind you should always rely only on a lawyer, not on a piece of research from a hired pen.

In larger news which perhaps indicates one of the lesser known incentives behind fighting illegal gambling, Louisville police force received a serious windfall in 2005, as a nine year investigation initiated by the department reached completion. This piece from the Las Vegas Sun details the story of the local police department, who stand to receive over $500,000 of the forfeited assets of a busted illegal bingo hall and money laundering outfit, which the Chief stated he hoped would be spent on a new helicopter.

Summary

In the fine state of Kentucky you can certainly have a good old time wagering on those horses, with some of the biggest and most prestigious events in horseracing taking place here.

With regard to other wagering activities, you can play the state lottery which is apparently soon to go online, and take part in state regulated charitable bingo and raffles.

When it comes to casino games, there aren’t any options for that yet in Kentucky. There are some venues very close to the state borders, mostly riverboats in Ohio and Indiana. There are some noises in the legislature about regulating Kentucky casinos, but so far no convincing action on this.

Participating in un-raked home games or free rolls doesn’t appear to be illegal, so that’s another option out there. Otherwise just stick to the races.

Sources for this article

1. GamingLawMasters.com: Kentucky
2. Kentucky.Gov: Kentucky Leaders Vow to Continue Fight Against Unauthorized, Unlicensed Gambling Websites
3. BGDailyNews.com: Games open, but legality not clear
4. Kentucky.com: Coalition of 31 organizations supports putting Kentucky gambling amendment on ballot
5. WDRB.com: Casino gambling still has pulse in General Assembly
6. Kentucky.com: Gambling foes launch advocacy group
7. Kentucky.com: Kentucky Lottery Board approves keno game, online lottery games

• Year Kentucky Regulated Gambling: Horseracing (1783), Lottery (1988), Historical Racing (2010)
• Estimated Tax Revenue from Gambling: unknown
• Estimated Gambling Revenue: unknown
• Kentucky Gambling Age: 18
• Smoking ban: Kentucky does not have a smoking ban
• Kentucky Online gambling: Off-track betting

Kentucky is considered the home of horse racing in the U.S. The Kentucky Derby, one of the best-known horse races in the world, is hosted at Churchill Downs in the state. Kentucky was home to the first known horse race in the country in 1783. The state has always accepted that its residents and tourists visit Bluegrass Country to take in the races and wager a few dollars.

While gambling on horses has always been embraced, it has not been quick to expand into Kentucky casinos. There is a state lottery in Kentucky. Instant racing, which are slot machines that display winning symbols based on past races, started appearing at racetracks earlier this decade. Kentucky racetracks may also offer off-track betting. Charities can offer games of chance with limited prizes and a number of events.

Paying Gambling Taxes in Kentucky

OnlineUnitedStatesCasinos has gathered everything you need to know about paying taxes on your gambling winnings straight from a Certified Public Accountant. Find out how you can report your gambling income to the IRS with our in-depth Gambling Taxes Guide. Learn which forms you have to fill out, how to report your winnings, as well as deduct losses.

Kentucky Casinos Map & Guide of Racetracks

• Ellis Park – Henderson
• Red Mile – Lexington

• Number of B&M Casinos: 0
• Number of Poker Rooms: 0
• Number of Indian Casinos: 0

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Types of Kentucky Online Gambling

The only form of legal Kentucky online gambling is off-track betting on horses. These wagers may be placed on websites and apps belonging to companies like TVG, Twinspires, and BetAmerica. TwinSpires is based in Kentucky. It is owned by Churchill Downs.

Daily fantasy sites claim legality under Kentucky’s skill gaming laws. While the state attorney general and its legislature have not addressed daily fantasy sports, some sour gamblers have filed lawsuits against the companies in an attempt to recover losses through qui tam laws. These cases are still in the court system.

Online poker, casino, and sports betting sites are not legal in Kentucky. The state has filed its own qui tam lawsuits to recover losses for the state’s residents. One judgment against PokerStars compelled the site to pay Kentucky $870 million. That case is under appeal. The state also filed a lawsuit in an attempt to seize 141 domain names from gambling sites.

Types of Live Kentucky Gambling

Slot Machines For Home Use

• Slots: No
• Blackjack: No
• Poker: No
• Craps/Roulette: No
• Horses: Yes
• Lottery: Yes

There are three types of live Kentucky gambling available to residents. A state lottery sells scratch-off and lotto tickets. This includes interstate drawings. Popular games include Lucky for Life, Pick 3, Pick 4, 5 Card Cash, Powerball, and Mega Millions.

There are six Kentucky racetracks. All offer horse tracks. Greyhound racing is not legal in Kentucky. All six tracks offer off-track betting on horses.

Kentucky Downs, Ellis Park, and Red Mile offer a controversial form of gambling that is working its way through the court system. These two tracks offer instant racing machines. These devices are programmed with thousands of past horse races. Players put cash into the machine and make a wager. The machine pulls one of these historical races and displays the reels on the device to match a payout similar to what the event would have paid. These are described as historical racing machines. Some consider them to be slot machines because that is exactly how they look and feel. The only difference is how the position of the reels is determined.

There are currently no Kentucky casinos operating at the moment. There is legislation that racetracks are trying to pass so that they can legally offer more popular electronic casino games, like electronic blackjack and roulette. We may see the racetracks and Kentucky casinos legislation combine and form “racinos” that are already popular in other states.

Kentucky Gambling Laws

Kentucky gambling laws define gambling as,

“staking or risking something of value on the outcome of a contest, game, gaming scheme, or gaming device which is based upon an element of chance, in accord with an agreement or understanding that someone will receive something of value in the event of a certain outcome.”

It only exempts the state lottery, horse racing, and arguably, instant racing machines. Charities may operate bingo games and raffles.

Promoting gambling is a Class A misdemeanor or Class D felony, depending on the charges. The minimum gambling age in Kentucky is 18 years for lottery, racing, and instant racing bettors.

Where to Gamble in Kentucky

There are more than 1,000 lottery retailers in Kentucky. There are also dozens of charitable organizations that offer bingo and similar games to raise funds for nonprofit operations.

Outside of these options, there are only six Kentucky racetracks to gamble at. You might consider these racetracks to be Kentucky casinos, as they already have permission to offer racing machines, which are very similar to slot machines. This may be the start of new Kentucky gambling legislation.

You can look for the specific racetrack you want to wager at on our Kentucky casinos map and guide located above.

Racetrack	Size	Address	Website
Churchill Downs – Louisville	No Instant Racing®	700 Central Ave.	www.churchilldowns.com
Ellis Park Race Course – Henderson	170 Instant Racing® Machines	3300 US-41	www.ellisparkracing.com
Keeneland – Lexington	No Instant Racing®	4201 Versailles Rd.	www.keeneland.com
Kentucky Downs – Franklin	500 Instant Racing® Machines	5629 Nashville Rd.	www.kentuckydowns.com
The Red Mile – Lexington	900 Instant Racing® Machines	1200 Red Mile Rd.	www.redmileky.com
Turfway Park – Florence	No Instant Racing®	7500 Turfway Rd.	www.turfway.com

History of Kentucky Gambling

Horse racing dates back to 1783 in Kentucky. That is nine years before it became a state. The first organized racing venue was created in Louisville. It was called Elm Tree Gardens. Racing spread to Lexington in 1787 where horses competed in The Commons. Churchill Downs, home of the Kentucky Derby, opened in 1883.

Kentucky did not regulate horse racing like it does today in its early years. It was simply impossible to control pari-mutuel pools and organize the tracks and horses centuries ago. It took until the early 1900’s for the Kentucky Horse Racing Commission to be created. Tracks have come and gone over the years. There are five in operation today. This makes Kentucky one of the most thriving states when it comes to horseracing.

The first legal lottery in Kentucky was held in 1792. It occurred in an attempt to fundraise for a church in Lexington. The Kentucky Lottery that exists today was created through a November 1988 constitutional referendum. The first ticket was sold in April 1989. The Kentucky Lottery sells scratch-off and lotto tickets.

The Kentucky Horse Racing Commission modified its regulations to permit instant racing machines in 2010. These games mimic slot machines. The devices display slot symbols in a pattern to show the payout of a horse race based in the past. The exact race is never known. The Kentucky Supreme Court ruled that the racing commission had the authority to legalize these games. Anti-gambling groups are still fighting instant racing in the courts. Kentucky Downs, Ellis Park, and Red Mile offer instant racing, and can be considered to be the only Kentucky casinos operating today.

Kentucky has been the home of two disputes with offshore online gambling sites. In 2008, Kentucky Gov. Steve Beshear’s office initiated a lawsuit in an attempt to seize 141 domain names related to gambling. Major sites were included in the list. Big names like PokerStars, Full Tilt Poker, Absolute Poker, DoylesRoom and Cake Poker were among them. The case dragged out until 2014 when a state appeals court essentially quashed it. This case was the beginning of offshore gaming sites moving to domains that do not use the .com extension. Kentucky received a small settlement related to Black Friday due to this case before it ultimately failed.

Kentucky is also the venue where PokerStars was sued for $290 million for accepting players in the state. Government officials alleged that PokerStars operated illegally and should be compelled to pay the state for its residents’ gambling losses under qui tam laws. The alleged events occurred from 2006 to 2011.

These loss recovery laws permit anybody to recover illegal gambling losses if the loser does not act within six months. A lower court awarded the $290 million as well as treble damages, making the total judgment $870 million. The case is currently under appeal

PokerStars was owned by Rational Group at the time the lawsuit is based. It has since been acquired by Amaya Gaming. The new owners of PokerStars have vowed to fight the case or pursue the former owners if it ultimately loses the legal battle.

Kentucky Casinos & Gambling FAQ

Yes. Kentucky is considered the home of the horse racing industry in the country.

Yes. There are six race books in Kentucky.

The only form of online betting legal in Kentucky is off-track horse racing.

No, only horse racing.

No, the closest thing to casinos in the state is instant racing machines. There are casinos in West Virginia, Ohio, Indiana and Illinois.

The minimum Kentucky gambling age is 18 years for all legal forms of gambling, including lottery and racing bets.

Yes, the Kentucky Lottery sells scratch-off and lotto tickets.

Lottery sales are not permitted over the Internet.

None of these types of websites are licensed to operate in Kentucky.

There is currently a court battle over alleged illegal online gambling where a lower court ruled PokerStars owes Kentucky $870 million. It is currently under appeal.