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Kentucky Online Gambling Laws: Online Poker Kentucky 2023
Gambling is practically a state tradition in Kentucky, mostly due to its long history of horse racing culture. Along with the races came gambling, and betting on horse races has become an integral part of the experience. As America began to update its views on gambling and regulate industries, Kentucky largely removed itself from those discussions, wanting to solely protect its horse racing arena. Poker has been struggling to be seen and heard, especially by Kentucky poker players.
Thanks to the aggressive position taken by some in the government on the issue of gambling online in Kentucky, not all online poker rooms take players from the state of Kentucky. That isn’t the same as saying no poker rooms will accept Kentucky sign-ups. You can still find the best real money online poker sites where Kentuckians can play.
You can play poker online in Kentucky. However, it’s worth noting that the legal status of online poker in Kentucky remains somewhat uncertain. Nevertheless, many players do engage in online poker for real money on various sites that accept players from Kentucky. If you decide to participate, it’s essential to choose reputable platforms to ensure a secure and enjoyable online poker experience, such as the ones we’ve listed.
Top Sites for Online Poker in Kentucky
Online Poker in Kentucky
Our top online poker rooms for KY are a result of a good deal of research that focuses on a few core things: Whether the room is licensed, how generous the room is with promotions and bonuses, how easy the games are and how good the software is. After surveying dozens of rooms, we narrowed the list to top online poker sites for players from Kentucky.
Is Online Poker Legal in Kentucky?
What does the law say about playing online poker in Kentucky? The first step to answering that question: review the Kentucky statutes here. The next step is to consult a lawyer if you still have questions. For those who just want to gain a basic understanding of Kentucky gambling law, here are some parts of the code that all poker players should be familiar with.
What does Kentucky law consider to be gambling? Gambling is defined in Section 528.010 as
“staking or risking something of value upon 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.”
There’s a phrase in Kentucky gambling law that could easily confuse at first glance – “profiting from gambling activity” (Section 528.010). So, you might think this could also apply to simply winning at a poker game. It’s actually referring specifically to profiting from the operation of an illegal gambling activity (not just participation).
Kentucky lacks an explicit criminal penalty for players engaging in exclusive illegal gambling, unlike many other states.
With that said, Kentucky does have a number of steep penalties for those who “advance gambling activity”. This is a broad category of actions that encompasses all “conduct that materially aids any form of gambling activity” (Section 528.010).
While our cursory reading regarding poker law in Kentucky suggests that players do not face any criminal liability for playing real-money poker online, this guide should not be taken as a substitute for legal advice.
Online Poker for Real Money in Kentucky
This leads to plenty of questions about how online poker works, whether you can play real poker online from Kentucky and the general climate for gambling in the state – questions answered in our Online Poker Player’s Guide to Kentucky.
Kentucky Poker & Gambling Laws Summarized
| Type/Code | Summary |
|---|---|
| State Code Section(s) | XIX.230; XIX.238; L.528 |
| Definition of Gambling & Player | Gambling: Staking or risking something of value upon 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. A contest or game in which eligibility to participate is determined by chance and the ultimate winner is determined by skill shall not be considered to be gambling.Player: A person who engages in any form of gambling solely as a contestant or bettor, without receiving or becoming entitled to receive any profit therefrom other than personal gambling winnings, and without otherwise rendering any material assistance to the establishment, conduct, or operation of the particular gambling activity. |
| Online Poker/Gambling | Kentucky has had a contentious relationship with poker since 2008, one filled with lawsuits and monopolies, legislation and revenue. One governor seized gambling-related domains in 2008, and his son began advocating for legal online poker in 2019 when he ran for his father’s role (and won it). Lawmakers are slowly softening on poker, but there are no state-regulated gambling sites in the state yet. |
| Live Poker | In 2022, private poker clubs began to emerge on the Kentucky scene. As membership clubs, not authorized by state laws, they’ve been walking a thin line with authorities. One since closed due to legal threats, while the other remained open to test the ambiguous and antiquated gambling law. |
| Casinos | Kentucky offers no casinos of any kind for gambling in the state. |
| Sports Betting | Kentucky lawmakers have considered bills to legalize sports betting in Kentucky, and they finally passed one at the very end of the 2023 legislative session. This will allow the state to regulate and license operators for live, retail, and online sports betting. |
| DFS | A Kentucky House bill was introduced in 2018 to legalize daily fantasy sports, but it did not pass. |
| Other Forms of Gambling | Horse racing, pari-mutuel betting, lottery, charitable gaming. |
Kentucky’s Fight Against Most Forms of Gambling
As a state that has long embraced horse racing, essentially becoming the center of the horse-racing world, Kentucky has wanted to protect the industry and everything that comes with it…at all costs.
A big part of the Kentucky horse industry is pari-mutuel betting. After all, It has been for more than 100 years.
Bookmaking was not legal when it began, but a machine changed all that. The invention of the totalizator machine in 1913 enabled horse tracks to display racing results on a tote boar, a large board at the track that changed with the results of each race. Churchill Downs, the home of the Kentucky Derby, had outlawed pari-mutuel betting on races in 1889, but the totalizator machine prompted a policy change in 1908. Betting on horse races not only became popular in Kentucky but at tracks all around the world.
For more than a century, the horse industry in Kentucky stifled any talk of legalizing other types of betting.
In 2006, the US government enacted the Unlawful Internet Gambling Enforcement Act (UIGEA). It was a law intended to prohibit online gambling but was written in a way that allowed for grey-area interpretations. Most large online poker sites remained open to Americans at that time.
Kentucky Governor Steve Beshear said no. Because he knew that Kentuckians were playing on sites like PokerStars, and he decided to use Kentucky’s Loss Recovery Act with the federal UIGEA to stop it. He asked a judge to authorize the state to seize 141 gambling website domains. Including those belonging to large operators like PokerStars. The judge agreed to allow it in 2008.
In 2010, Kentucky took it a step further. Beshear decided that the Commonwealth should sue PokerStars, Full Tilt, and others for “damages” to obtain reimbursements for all money players in Kentucky lost to online gambling after the UIGEA. The state wanted all money it claimed the sites raked since 2006.
All of this legal action came together in 2015, and Franklin County Circuit Judge Thomas Wingate ruled that Kentucky had the right to sue for all losses, not just rake. This awarded Kentucky $870M in damages. The law was on Kentucky’s side, as Black Friday in 2011 had put global poker operators on notice and kicked them out of the US market. PokerStars bailed out an insolvent Full Tilt to reimburse its players, as Stars did for UltimateBet and Absolute Poker, too. Kentucky knew that PokerStars was desperate to make nice with the US government and American states so it could eventually reenter the US market.
(Side note: The $870M number came from an estimate that 34,000 Kentuckians gambled on PokerStars between 2006 and 2011. The court estimated those players lost $290M. But since the court could add damages and 12% interest, the judge determined $870,690,233.82 to be a good number.)
PokerStars appealed the case, and the Kentucky Court of Appeals did rule for PokerStars, reversing the lower court’s judgment. But the Commonwealth of Kentucky wasn’t letting it go so easily. It appealed to the Kentucky Supreme Court.
Kentucky won in a 4-to-3 decision in December 2020. And the new amount owed, including interest, was nearly $1.3B.
By that time, the governor’s son had taken over. Governor Andy Beshear expressed satisfaction with the outcome of the case, serving PokerStars right for “their years of irresponsible and criminal actions.” PokerStars tried to appeal to the State Supreme Court, but the court denied that appeal. PokerStars then took it to the US Supreme Court in 2021 but soon dropped the matter after reaching a settlement with Kentucky. Parent company Flutter Entertainment agreed to pay Kentucky an immediate sum of $300M to call the matter done. Then, Kentucky agreed.
Changing Minds and Tactics
Part of the reason that Flutter agreed to the settlement was that the young new governor had indicated strong support for state-regulated sports betting, fantasy contests, and…online poker. This was a market that Flutter wanted to be a part of, as it was already in states like New Jersey, Michigan, and Pennsylvania.
Before that aforementioned settlement even happened, Democratic Governor Andy Beshear teamed up with Republican Kentucky Representative Adam Koenig to plead with the legislature to legalize sportsbooks, DFS, and poker online. Koenig sponsored a bill to get things started in early 2020, with several goals in mind:
- Keep Kentuckians from spending their money in neighboring states and at online sites based outside of the US.
- Encourage players to put their money into state-regulated betting instead, allowing Kentucky to tax the sites and player winnings and oversee the entire market.
- Find a new revenue stream to help pay for underfunded public pensions without raising taxes for Kentuckians.
Koenig stepped up with bills every year from 2019 onward, but anti-gambling lobbyists – including many in the horse racing industry – kept the bill from moving forward.
His 2022 legislation appeared to have some traction, as it was bipartisan in sponsorship and associated with a “problem gambling assistance fund.” Koenig’s bill was accompanied by a companion bill from Senator David Yates, and they saw bipartisan support. The House bill moved to the floor for a third reading. It passed with an amendment by a 58-to-30 vote. The Senate bill didn’t find the same support, despite some lawmakers adding amendments. Senate Majority Leader Damon Thayer said the number of amendments turned off some members, and it died.
Kentucky Sports Betting Yes, Online Poker No
Sports betting legislation had been attached to online poker. There was an assumption that the legislature would approve both if they approved of any gambling expansion at all.
At the beginning of 2023, Representative Derrick Graham partnered with fellow House members Cherlynn Stevenson and Rachel Roberts to introduce HB106. (Koenig lost his primary and his seat in 2022.) This year’s online poker bill again accompanied sports betting in HB106, along with daily fantasy sports (DFS). It contained provisions for an initial $250K licensing fee for each operator, a $10K annual renewal fee, and a 6.75% tax on net poker revenue.
On the Senate side, State Senator David Yates introduced SB73, a companion bill to HB106
It was the original House bill that took flight, however. In mid-February, with more sponsors signed on, the bill added an amendment to address problem gambling. The bill moved to the Appropriations and Revenue Committee for a possible hearing on the last day of February.
Instead of a hearing, however, a new bill emerged. HB551 sought to legalize sports betting. Online poker was off the table.
Sports betting passed the House without much ado, and the Kentucky Senate passed it in the final days of the legislative session. Governor Beshear signed it into law on March 31, and it will be effective on June 28, 2023.
The new law will allow the nine Kentucky horse tracks to open retail sportsbooks. Each can launch up to three online sportsbooks. Analysts estimate that the new industry could bring in $23M in annual tax revenue beginning in the first full year.
Online poker will need to fight again next year and without being able to latch on to sports betting.
Kentucky Gambling Facts
By some accounts, Kentucky was home to Las Vegas before Vegas even existed. While a town of a different name – Newport – was the central attraction for gamblers, historians seem to agree that Kentucky was essentially the turn of the century equivalent to Las Vegas. Complete with underworld crime figures, illicit profits and plenty of suspect activity. Colorful gangsters and their gambling hangouts are now the stuff of legend and nostalgia in Kentucky, but betting and wagering continues to play a vital role in the culture and economy of the state.
Regulated Gambling Options in Kentucky
Within the state borders of Kentucky, you’re limited to the lottery, charitable gambling and – of course – pari-mutuel betting on horse races. After all, what fun would the Kentucky Derby be if everyone just watched the horses run? There are no commercial casinos in the state, but several site right on various borders in neighboring states such as Indiana and Ohio. While there has been some talk of bringing full-fledged commercial casinos (along with poker rooms) to Kentucky, repeated attempts to do so by the state legislature have failed, suggesting that the current lineup of regulated gambling options may well persist for years to come.
While casinos and igaming remain unpopular with the majority of Kentucky lawmakers, sports betting tugged at their heartstrings. They legalized live and online sports betting in the last days of the 2023 legislative session. The new law will take effect in summer 2023. The first sportsbooks could launch as early as late 2023 or early 2024.
Can you Gamble Online in Kentucky?
Residents of Kentucky are able to legally place online bets on horse races through approved operators. In 2023, Kentucky did legalize sports betting, which will enable the launch of retail sportsbooks at horse racing tracks and online. These options may be open for business by late 2023 or early 2024.
Online poker and online casino games are not legal to be licensed and regulated in Kentucky.
Top Poker Players from Kentucky
With a lack of live poker, Kentucky isn’t exactly a breeding ground for poker. However, like most states without live poker, players rise from home games and online poker to grow into the game.
That was the case with Kurt Jewell, who holds the top spot on the Kentucky all-time live tournament earnings list. He has earned more than $2M in his career, mostly at Midwest and Las Vegas casinos. He has won events at World Poker Tour series and Wynn Fall Classic, and he holds several WSOP Circuit rings.
The only other players on the list with more than $1M in earnings are Charlie Dawson, Billy Kopp, and Dennis Perry. But Jewell holds the lead by more than $750K.
The top five on the Kentucky all-time money list, according to the Hendon Mob, are:
- Kurt Jewell $2,000,361
- Charlie Dawson $1,258,994
- Billy Kopp $1,248,120
- Dennis Perry $1,101,418
- Mark Smith $843,575
All Poker and Gambling Laws by State
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Kentucky in the News
Kentucky Sports Betting Bill Moves Without Online Poker
It has happened in other states, and Kentucky is doing it, too. Consideration for legal online poker and casino games
Kentucky Shuts Poker Room and May Put Online Poker on Hold
The legalization of online poker in the Commonwealth of Kentucky was going so well…until it changed course. Not only were
Kentucky Prepares to Fight Again for Online Poker
It’s been happening for years. Kentucky has been trying to legalize online poker and sports betting for several years. Legislation
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