AN ACT relating to gaming.

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AN ACT relating to gaming. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 230.210 is amended to read as follows: 3
As used in this chapter, unless the context requires otherwise: 4
(1) "Advance deposit account wagering" means a form of pari -mutuel wagering in 5
which an individual may establish an account with a person or entity licensed by the 6
corporation, and may place a pari -mutuel wager through that account that is 7
permitted by law; 8
(2) "Advance deposit account wagering licensee" means a person or entity licensed by 9
the corporation to condu ct advance deposit account wagering and accept deposits 10
and wagers, issue a receipt or other confirmation to the account holder evidencing 11
such deposits and wagers, and transfer credits and debits to and from accounts; 12
(3) "Amateur youth sporting event" means any sporting event in which an individual: 13
(a) Shall be less than eighteen (18) years of age to participate; and 14
(b) Is prohibited, as a condition of participating in the sporting event, from 15
receiving direct or indirec t compensation for the use of the individual's 16
athletic skill in any manner with respect to the sport in which the particular 17
sporting event is conducted; 18
(4) "Appaloosa race" or "Appaloosa racing" means that form of horse racing in which 19
each horse participating in the race is registered with the Appaloosa Horse Club of 20
Moscow, Idaho, and is mounted by a jockey; 21
(5) "Arabian" means a horse that is registered with the Arabian Horse Registry of 22
Denver, Colorado; 23
(6) "Association" means any person licensed by the Kentucky Horse Racing and 24
Gaming Corporation under KRS 230.300 and engaged in the conduct of a 25
recognized horse race meeting; 26
(7) "Athlete": 27
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(a) Means a professional or amateur competitor in a real -world lawful sporting 1
event or an organized video game competition that is: 2
1. Regulated by a sports governing body; and 3
2. Held between participants who compete individually or as a team; and 4
(b) Includes equine competitors; 5
(8)[(7)] "Charitable gaming" means gaming licensed by the corporation on and after 6
July 1, 2025, as authorized under this chapter and KRS Chapter 238; 7
(9)[(8)] "Corporation" means the Kentucky Horse Racing and Gaming Corporation; 8
(10) "Event contract": 9
(a) Means an agreement, contract, transaction, or swap in an excluded 10
commodity based on the occurrence, extent of an occurrence, or 11
contingency, other than a change in the price, rate, value, or levels of a 12
commodity described in 7 U.S.C. sec. 1a(19)(i), as amended; and 13
(b) Does not include: 14
1. Any contract of sale of a commodity for future delivery, i.e., futures, or 15
any option on such a contract, i.e., options on futures, executed on or 16
subject to the rules of a designated contract market; or 17
2. Any swap or derivative based on: 18
a. An agricultural commodity; 19
b. An exempt commodity; or 20
c. Any excluded commodity not subject to paragraph (a) of this 21
subsection; 22
as such terms are used and defined in the Commodity Exchange Act, 7 23
U.S.C. sec. 1a; 24
(11) "Fantasy contest entry fee" means the cash or cash equivalent that is required to 25
be paid by a fantasy contest participant in advance to a fantasy contest service 26
provider in order to participate in a fantasy contest; 27
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(12) "Fantasy contest": 1
(a) Means any online fantasy or simulated game or contest that meets the 2
following conditions: 3
1. a. There are no fewer than two (2) fantasy contest participants. 4
b. i. All fantasy contest participants are natural persons; and 5
ii. A fantasy contest service provider shall not be construed to 6
be a participant; 7
2. a. The values of all prizes offered to winni ng fantasy contest 8
participants are established and made known to fantasy contest 9
participants in advance of the contest. 10
b. Multiple winning participants may share a prize. 11
c. Prizes may consist of fixed amounts, tiered payouts, or other 12
conditional bonus payouts, provided that all prize structures are 13
disclosed in advance by the fantasy contest service provider; 14
3. All winning outcomes reflect the relative knowledge and skill of the 15
fantasy contest participant and are determined predominantly by the 16
accumulated statistical performance or finishing position of multiple 17
athletes across one (1) or more real-world sporting events; 18
4. Fantasy contest participants assemble a fictional entry or roster of 19
actual athletes and exercise management or selection contro l over the 20
roster; 21
5. Fantasy contest participants compete for prizes awarded by a fantasy 22
contest service provider based on terms and conditions published by 23
the fantasy contest service provider and made known to the fantasy 24
contest participant in advance of the contest; 25
6. Winning outcomes are determined by clearly established scoring 26
criteria based on one (1) or more statistical results of the performance 27
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of an individual athlete, including but not limited to a fantasy score; 1
7. A winning outcome is not based: 2
a. On the score, point spread, or outcome of a single real -world 3
team or combination of teams; or 4
b. Solely on any single performance of an individual athlete or 5
participant in any single actual event; and 6
8. The game or contest does not violate any provision of federal law; 7
(b) Includes contests in which fantasy contest participants compete against 8
each other; and 9
(c) Does not include any fantasy contest: 10
1. Without a fantasy contest entry fee; or 11
2. Betting against the fantasy contest service provider; 12
(13) "Fantasy contest service provider": 13
(a) Means a person or entity that offers fantasy contests to the general public; 14
and 15
(b) Does not include an internet service provider or a provider of mobile data 16
services merely as a result of that provider's transporting of general traffic 17
that may include a fantasy contest; 18
(14) "Fantasy contest participant" means any individual physically present in the 19
Commonwealth who participates in a fantasy contest offered by a fantasy contest 20
service provider; 21
(15) "Fixed-odds wagering" means a form of betting in which the payout odds are set 22
and agreed upon at the time the wager is placed and those odds do not change, 23
regardless of subsequent market movement or betting activity, except that the 24
bookmaker may apply Tattersalls rules to ensure fair settlement; 25
(16)[(9)] "Geofence" means a virtual geographic boundary defined by Global 26
Positioning System (GPS) or Radio Frequency Identification (RFID) technology; 27
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(17)[(10)] "Harness race" or "harness racing" means trotting and pacing races of the 1
standardbred horses; 2
(18)[(11)] "Horse race meeting" means horse racing run at an association licensed and 3
regulated by the Kentucky Horse Racing and Gaming Corporation, and may include 4
Thoroughbred, harness, Appaloosa, Arabian, paint, and quarter horse racing; 5
(19)[(12)] "Host track" means the track conducting racing and offering its racing for 6
intertrack wagering, or, in the case of interstate wagering, means the Kentucky 7
track conducting racing and offering simulcasts of races conducted in other states or 8
foreign countries; 9
(20)[(13)] "Interstate wagering" means pari -mutuel wagering on simulcast horse races 10
from a track located in another state or foreign country by patrons at a rec eiving 11
track or simulcast facility; 12
(21)[(14)] "Intertrack wagering" means pari -mutuel wagering on simulcast horse races 13
from a host track by patrons at a receiving track; 14
(22)[(15)] "Kentucky paint horse, Appaloosa, and Arabian purse fund" means a purse 15
fund established to receive funds as specified in KRS 230.3771 for purse programs 16
established in KRS 230.446 to supplement purses for paint horse, Appaloosa, and 17
Arabian horse races. The purse program shall be administered by the Kentucky 18
Horse Racing and Gaming Corporation; 19
(23)[(16)] "Kentucky quarter horse purse fund" means a purse fund established to 20
receive funds as specified in KRS 230.3771 for purse programs established in KRS 21
230.407 to supplement purses for quarter horse races. The purse program sha ll be 22
administered by the Kentucky Horse Racing and Gaming Corporation; 23
(24)[(17)] "Kentucky resident" means: 24
(a) An individual domiciled within this state; 25
(b) An individual who maintains a place of abode in this state and spends, in the 26
aggregate, more than one hundred eighty-three (183) days of the calendar year 27
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in this state; or 1
(c) An individual who lists a Kentucky address as his or her principal place of 2
residence when applying for an account to participate in advance deposit 3
account wagering; 4
(25)[(18)] "Licensed facility for sports wagering" means the designated areas to conduct 5
sports wagering for a track licensed to conduct sports wagering pursuant to KRS 6
230.811; 7
(26)[(19)] "Licensed premises" means a track or simulcast facility licensed by the 8
corporation under this chapter; 9
(27)[(20)] "Paint horse" means a horse registered with the American Paint Horse 10
Association of Fort Worth, Texas; 11
(28)[(21)] "Pari-mutuel wagering," "pari -mutuel system of wagering," or "mutuel 12
wagering" each means any method of wagering previously or hereafter approved by 13
the corporation in which one (1) or more patrons wager on a horse race or races, 14
whether live, simulcast, or previously run. Wagers shall be placed in one (1) or 15
more wagering pools, and wagers on different races or sets of races may be pooled 16
together. Patrons may establish odds or payouts, and winning patrons share in 17
amounts wagered including any carryover amounts, plus any amounts provided by 18
an association less any deductions required, as approved by the corporation and 19
permitted by law. Pools may be paid out incrementally over time as approved by 20
the corporation; 21
(29)[(22)] "Person" means an individual, sole proprietorship, partnership, association, 22
fiduciary, corporation, limited liability company, or any other business entity; 23
(30) "Prediction market": 24
(a) Means: 25
1. Any physical or electronic platform through which a consumer may 26
buy, sell, or exchange event contracts, whether the market is located in 27
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or out of the state; or 1
2. Any platform or system th at provides consumers with the ability to 2
open speculative positions on the outcomes of future events; and 3
(b) May be a board of trade designated as a contract market by the Commodity 4
Futures Trading Commission; 5
(31)[(23)] "President" means the president o f the Kentucky Horse Racing and Gaming 6
Corporation, who shall serve as chief executive officer of the corporation; 7
(32)[(24)] "Principal" means any of the following individuals associated with a 8
partnership, trust, association, limited liability company, or corporation that is 9
licensed to conduct a horse race meeting or an applicant for a license to conduct a 10
horse race meeting: 11
(a) The chairman and all members of the board of directors of a corporation; 12
(b) All partners of a partnership and all participating members of a limited 13
liability company; 14
(c) All trustees and trust beneficiaries of an association; 15
(d) The president or ch ief executive officer and all other officers, managers, and 16
employees who have policymaking or fiduciary responsibility within the 17
organization; 18
(e) All stockholders or other individuals who own, hold, or control, either directly 19
or indirectly, five percent (5%) or more of stock or financial interest in the 20
collective organization; and 21
(f) Any other employee, agent, guardian, personal representative, o r lender or 22
holder of indebtedness who has the power to exercise a significant influence 23
over the applicant's or licensee's operation; 24
(33) "Prohibited participant" means: 25
(a) A person who has self-excluded under Section 11 of this Act; 26
(b) An athlete, coa ch, referee or other officiant, trainer, team staff, or other 27
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active participant in the sporting event or competition when the fantasy 1
contest entry includes athlete selections from a sporting event overseen by 2
the same governing body which oversees the at hlete, coach, referee or other 3
officiant, trainer, or team staff in question; 4
(c) Any individual participating in a fantasy contest on behalf of another; 5
(d) Any restricted participant participating in violation of their restrictions; or 6
(e) Any voluntarily or involuntarily excluded person; 7
(34)[(25)] "Proof of wagers" includes any paper, card, certificate, token, or ticket, which 8
indicates the details of one (1) or more pari -mutuel wagers that were placed and, if 9
such wagers are successful, that winnings a re due to the ticket holder from the 10
track; 11
(35)[(26)] "Quarter horse" means a horse that is registered with the American Quarter 12
Horse Association of Amarillo, Texas; 13
(36)[(27)] "Receiving track" means a track where simulcasts are displayed for wagering 14
purposes. A track that submits an application for intertrack wagering shall meet all 15
the regulatory criteria for granting an association license of the same breed as the 16
host track, and shall have a heated and air -conditioned facility that meets all state 17
and local life safety code requirements and seats a number of patrons at least equal 18
to the average daily attendance for intertrack wagering on the requested breed in the 19
county in which the track is located during the immediately preceding calendar 20
year; 21
(37) "Restricted participant": 22
(a) Means an individual that is restricted from participating in fantasy contests: 23
1. Where the individual's profession or relationship gives the individual 24
access to nonpublic information that could affect the outcome of a 25
fantasy contest; or 26
2. For any reason the individual may have access to nonpublic 27
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information that could affect the outcome of a fantasy contest; 1
(b) Includes the following professions or relationships: 2
1. Players; 3
2. Coaches; 4
3. Referees, umpires, judges, or other officiants involved in enforcing the 5
rules of the game; 6
4. Spouses and close family members of persons included in 7
subparagraphs 1. to 3. of this paragraph; and 8
5. Owners or shareholders of more than five percent (5%) interest in 9
professional sports teams who might have influence over players and 10
coaches through the ability to hire or fire; and 11
(c) Also includes any other persons identified by the corporation as restricted 12
participants; 13
(38)[(28)] "Simulcast facility" means any facility approved pur suant to KRS 230.380 to 14
simulcast live racing and conduct pari-mutuel wagering on live racing; 15
(39)[(29)] "Simulcasting" means the telecast of live audio and visual signals of horse 16
races for the purpose of pari-mutuel wagering; 17
(40)[(30)] "Sporting event" means an event at which two (2) or more persons participate 18
in athletic contests, or an event that takes place in relation to athletic contests as 19
approved by the corporation, but shall not include [horse racing or ] amateur youth 20
sports or athletic events in which the majority of participants are under the age of 21
eighteen (18) years or the outcome of any local, state, or federal election; 22
(41)[(31)] "Sports governing body" means the organization, league, or association that 23
oversees a sport, prescribes fin al rules, and enforces codes of conduct with respect 24
to such sport and participants therein; 25
(42)[(32)] "Sports wagering" means the wagering conducted under this chapter on 26
sporting events or portions of sporting events, or on the individual performance 27
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statistics of athletes in a sporting event or combination of sporting events, in 1
conformance with federal law and as authorized by the corporation pursuant to this 2
chapter; 3
(43)[(33)] "Sports wagering device": 4
(a) Means a mechanical, electrical, or computerized contrivance, terminal, 5
device, apparatus, software, piece of equipment, or supply approved by the 6
corporation for conducting sports wagering under this chapter; and 7
(b) Includes a personal computer, mobile de vice, or other device used in 8
connection with sports wagering not conducted at a licensed facility for sports 9
wagering; 10
(44)[(34)] "Sports wagering service provider" or "service provider" means a person 11
authorized to conduct or manage sports wagering through an agreement with a track 12
and provide these services at a licensed facility for sports wagering, simulcast 13
facility, or through a website or mobile interface approved by the corporation; 14
(45)[(35)] "Telephone account wagering" means a form of pari -mutuel wagering where 15
an individual may deposit money in an account at a track and may place a wager by 16
direct telephone call or by communication through other electronic media owned by 17
the holder of the account to the track; 18
(46)[(36)] "Thoroughbred race" or " Thoroughbred racing" means a form of horse racing 19
in which each horse participating in the race is a Thoroughbred, ( e.g.[i.e.], meeting 20
the requirements of and registered with The Jockey Club of New York) and is 21
mounted by a jockey; 22
(47)[(37)] "Track" means any association duly licensed by the Kentucky Horse Racing 23
and Gaming Corporation to conduct horse racing and includes: 24
(a) For facilities in operation as of 2010, the location and physical plant described 25
in the "Commonwealth of Kentucky Initial/Renewal Application for License 26
to Conduct Live Horse Racing, Simulcasting, and Pari -Mutuel Wagering," 27
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filed for racing to be conducted in 2010; 1
(b) Real property of an association, if the association received or receives 2
approval from the corporation after 2010 for a location at which live racing is 3
to be conducted; or 4
(c) One (1) facility or real property that is: 5
1. Owned, leased, or purchased by an association within a sixty (60) mile 6
radius of the association's racetrack but not contiguous to racetrack 7
premises, upon corporation approval; and 8
2. Not within a sixty (60) mile radius of another licensed track premise 9
where live racing is conducted and not within a forty (40) mile radius of 10
a simulcast facility, unless any affected track or simulcast facility agre es 11
in writing to permit a noncontiguous facility within the protected 12
geographic area; 13
(48)[(38)] "Unclaimed pari-mutuel winning ticket": 14
(a) Means the proof of wager that would require payment of winnings upon 15
submission to the track, but has been presume d abandoned under KRS 16
230.361; and 17
(b) Includes proof of wagers from live racing and simulcasting; and 18
(49)[(39)] "Unredeemed pari-mutuel voucher": 19
(a) Means a voucher issued by a licensed track that evidences the value of funds 20
or credits available that a patron may use for placing pari -mutuel wagers on 21
live or previously run horse races, or which the patron may redeem for cash, 22
but has been presumed abandoned under KRS 230.361; and 23
(b) Does not include: 24
1. Any proof of wagers or any other information rela ted to specific wagers 25
placed on live or historical horse racing; or 26
2. Any vouchers that were voluntarily surrendered for donation to charity 27
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or similar purposes. 1
SECTION 2. A NEW SECTION OF KRS CHAPTER 13A IS CREATED T O 2
READ AS FOLLOWS: 3
Notwithstanding any law to the contrary, the Governor's signature or certification 4
shall not be required for the following administrative bodies to promulgate an 5
emergency or ordinary administrative regulation: 6
(1) The Kentucky Lottery Corporation; and 7
(2) The Kentucky Horse Racing and Gaming Corporation. 8
SECTION 3. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 9
READ AS FOLLOWS: 10
(1) As used in this section: 11
(a) "Child support arrearage" means a past-due child support obligation of five 12
hundred dollars ($500) or more owed by an individual per Title IV -D case 13
pursuant to a Kentucky court order or an order of another state registered 14
and enforceable in Kentucky; 15
(b) "Disqualified person" means any individual who appears on the child 16
support arrearage registry maintained pursuant to subsection (2) of this 17
section; 18
(c) "Licensed online gaming operator" means any person or entity holding a 19
license issued by the Kentucky Horse Racing and Gaming Corporation who 20
offers online gaming, online sports wagering, or fantasy contests to persons 21
located within the Commonwealth; and 22
(d) "Online gaming" includes any gaming that is wagered upon a website, 23
mobile application, or any ot her off -site technology approved by the 24
Kentucky Horse Racing and Gaming Corporation pursuant to this chapter. 25
(2) The Office of the Attorney General or applicable administrative body shall: 26
(a) Compile and maintain a child support arrearage registry consi sting of the 27
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name, date of birth, and Social Security number of each individual who 1
owes a child support arrearage as defined in subsection (1)(a) of this 2
section; and 3
(b) 1. Transmit an updated registry to the corporation on a monthly basis, or 4
more frequently as practicable. 5
2. Upon receipt of the updated registry, the corporation shall disseminate 6
the registry to each licensed online gaming operator. 7
(3) A licensed online gaming operator shall: 8
(a) Prior to creating an account for any applicant, verify w hether the applicant 9
appears on the child support arrearage registry; and 10
(b) Deny account creation to any applicant who is a disqualified person. 11
(4) A licensed online gaming operator shall, upon receipt of each updated registry 12
transmitted under subsecti on (2) of this section, cross -reference the updated 13
registry against its existing account holders. Any account holder identified as a 14
disqualified person shall have his or her account suspended within five (5) 15
business days of receipt of the updated regist ry. The operator shall provide notice 16
to the account holder of the suspension and the reason therefor. 17
(5) A suspended account shall be reinstated when the individual no longer appears 18
as a disqualified person on the registry transmitted under subsection ( 2) of this 19
section. Reinstatement shall occur no later than five (5) business days following 20
the licensed online gaming operator's receipt of an updated registry on which the 21
individual does not appear. 22
(6) A licensed online gaming operator that knowingly creates an account for, or 23
knowingly permits continued participation by, a disqualified person shall be 24
subject to administrative penalties imposed by the applicable licensing authority, 25
including suspension or revocation of the operator's license. 26
(7) A c ause of action shall not lie against a licensed online gaming operator for 27
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account denial or suspension undertaken in good -faith compliance with this 1
section. 2
(8) The applicable licensing authority shall promulgate administrative regulations 3
necessary to implement this section with respect to operators and products under 4
their respective jurisdiction, including procedures for secure data handling and 5
the account reinstatement process. 6
(9) This section shall not be construed to apply to persons licensed to c onduct 7
charitable gaming under KRS Chapter 238. 8
SECTION 4. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 9
READ AS FOLLOWS: 10
(1) The corporation shall promulgate administrative regulations in accordance with 11
KRS Chapter 13 A to govern the operation of fantasy contests and enforce 12
Sections 4 to 11 of this Act, but the corporation shall not limit or restrict lawful 13
fantasy contests solely by labeling them as sports wagering, except the 14
corporation may classify a contest as spo rts wagering when warranted by its 15
actual characteristics and consistent with state and federal law. 16
(2) The corporation shall: 17
(a) Regulate the conduct of fantasy contest service providers; 18
(b) Promulgate administrative regulations to regulate fantasy con tests no later 19
than one hundred eighty (180) days after the effective date of this Act. 20
(c) Require a fantasy contest service provider to use geolocation technology to 21
verify that a fantasy contest participant is physically present in the 22
Commonwealth when submitting an entry unless otherwise authorized by 23
the corporation; and 24
(d) Exercise any other powers necessary to enforce the provisions of Sections 4 25
to 11 of this Act. 26
(3) The corporation and fantasy contest service providers shall cooperate with 27
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investigations conducted by law enforcement agencies, including but not limited 1
to providing and facilitating the provision of account level entry and participation 2
information. 3
(4) Any participant in a fantasy contest shall be at least eighteen (18) years old. 4
(5) A licensed fantasy contest service provider shall not be forced to surrender or 5
terminate a license prior to the date of expiration of the license solely by virtue of 6
a change in the qualifications for licensure under Sections 4 to 11 of this Act. 7
SECTION 5. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 8
READ AS FOLLOWS: 9
Fantasy contest service providers shall: 10
(1) Implement procedures to prevent fraud, abuse, and money laundering; 11
(2) Establish technical and operational measures to prevent underage participation 12
in a fantasy contest; 13
(3) Deploy identity verification procedures, which may require the use of a reputable 14
independent third party that can: 15
(a) Verify a person's personally identifiable information; and 16
(b) Detect potential prohibited participants; 17
(4) Employ mechanisms on the fantasy contest service provider's platform that are 18
designed to detect and prevent: 19
(a) Unauthorized accounts; 20
(b) Fraud; 21
(c) Money laundering; and 22
(d) Collusion; and 23
(5) Make all commercially and technologically reasonable efforts to promptly notify 24
the corporation of: 25
(a) A confirmed breach of the relevant sport's governing body's internal rules 26
and codes of conduct, if provided to the fantasy contest service provider, 27
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pertaining to participation in real-money fantasy contests; 1
(b) Any conduct that corrupts any outcome related to a sporting event or 2
sporting events for purposes of financial gain, including match fixing; and 3
(c) Confirmed illegal activities, including use of funds derived from illegal 4
activity, entries to conceal or launder funds derived from illegal activity, 5
multi-accounting, and using false identification. 6
SECTION 6. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 7
READ AS FOLLOWS: 8
(1) Except as otherwise provided in this section, a person shall not offer fantasy 9
contests in the Commonwealth unless the person is licensed by the corporation as 10
a fantasy contest service provider. 11
(2) An applicant for a fantasy contest service provider license shall: 12
(a) Submit an application to the corporation in the form the corporation 13
requires in the corporation's administrative regulations; 14
(b) Submit fingerprints for a na tional criminal history record check by a law 15
enforcement agency, which shall be: 16
1. Furnished by the applicant's director, officer, key employee, or 17
individual owner of five percent (5%) or more of the fantasy contest 18
service provider; and 19
2. Accompanied by a signed authorization for the release of information 20
by the law enforcement agency; and 21
(c) Be denied a license if previously convicted of a disqualifying offense as 22
established in subsection (8) of this section. 23
(3) The corporation may require additional background checks on a fantasy contest 24
service provider when a fantasy contest service provider submits a renewal 25
application. 26
(4) This section shall not require a fantasy contest service provider applicant or 27
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person who h as submitted to a national criminal history record check in 1
Kentucky or any other state within the twelve (12) months prior to submitting the 2
application to resubmit to another record check if the fantasy service provider 3
applicant or person submits the re sults of the previous record check and affirms 4
there has been no material change since the previous record check. 5
(5) The form required by the corporation under subsection (2) of this section shall 6
include but is not limited to the following information: 7
(a) The fantasy contest service provider's name; 8
(b) The location of the fantasy contest service provider's principal place of 9
business; 10
(c) The fantasy contest service provider's contact information; 11
(d) The fantasy contest service provider's Social Securi ty number or, if 12
applicable, federal employer identification number; 13
(e) The name and address of each person that holds a five percent (5%) or 14
more ownership interest or shares in the fantasy contest service provider; 15
(f) The fantasy contest service provid er's criminal record or, if the fantasy 16
contest service provider is a business entity, any criminal record of a person 17
who is a director, officer, or key employee of the applicant or any person 18
who has a five percent (5%) or more ownership interest in the fantasy 19
contest service provider; 20
(g) Documentation identifying the following from the fantasy contest service 21
provider, or any director, officer, key employee, or individual owner of five 22
percent (5%) or more of the fantasy contest service provider that has: 23
1. Any ownership interest in a business that is or was a fantasy contest 24
service provider or similar entity in any jurisdiction; 25
2. An equity interest of five percent (5%) or more in any business of the 26
fantasy contest service provider. If a business h as been identified 27
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under this subparagraph, documentation shall be provided showing 1
the state in which the business is incorporated or registered, if 2
applicable; 3
3. Ever applied for or been granted any license, registration, or 4
certificate issued by a lice nsing authority in Kentucky or any other 5
jurisdiction for a gaming activity; and 6
4. Filed or been served with a complaint or other notice filed by a public 7
body regarding the delinquency in payment of or dispute over filings 8
concerning the payment of any t ax required under federal, state, or 9
local law, including the amount of tax, type of tax, and taxing agency 10
and the time periods involved; and 11
(h) Information sufficient to show, as determined by the corporation, that the 12
fantasy contest service provider c an meet the requirements of Sections 4 to 13
11 of this Act. 14
(6) The corporation may promulgate administrative regulations in accordance with 15
KRS Chapter 13A to establish additional qualifications and requirements to 16
preserve the integrity and security of fan tasy contests and to promote and 17
maintain a competitive fantasy contest market. 18
(7) On receipt of a completed application and the required fee, the corporation shall 19
conduct the necessary background investigation to determine if the applicant 20
meets the qua lifications for licensure. On completion of the investigation, the 21
corporation shall issue a license or deny the application. If the application for 22
licensure is denied, a statement setting forth the grounds for denial shall be 23
forwarded to the applicant t ogether with all other documents relied on by the 24
corporation, to the extent allowed by law. 25
(8) (a) A person shall not be issued a license if the person has been convicted of a 26
violation of state or federal law that is: 27
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1. A felony; 1
2. Any crime involving illegal gaming or gambling; or 2
3. Any crime involving theft or fraud that is or would be a felony or 3
Class A misdemeanor in the Commonwealth of Kentucky. 4
(b) The prohibitions in paragraph (a) of this subsection shall apply to the 5
applicant or licensee, or director, officer, key employee, or individual owner 6
of five percent (5%) or more of the fantasy contest service provider. 7
SECTION 7. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 8
READ AS FOLLOWS: 9
(1) As part of its su bmission for licensure or renewal, a fantasy contest service 10
provider applicant shall: 11
(a) Contract with a certified public accountant to conduct an independent 12
audit, consistent with generally accepted accounting principles; 13
(b) Annually contract with a testing laboratory, certified public accountant, or 14
another professional service provider recognized by the corporation to verify 15
compliance with Sections 4 to 11 of this Act; and 16
(c) Submit to the corporation a copy of the audit r eport and of the compliance 17
report of the testing laboratory, certified public accountant, or professional 18
service provider. 19
(2) An initial fantasy contest service provider is not required to submit an audit 20
report and report of the testing laboratory unti l twenty -four (24) months 21
following the issuance of a license. 22
SECTION 8. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 23
READ AS FOLLOWS: 24
(1) The corporation shall investigate all reasonable allegations of prohibited con duct 25
and refer any allegations it deems credible to the appropriate law enforcement 26
agency. 27
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(2) The identity of any reporting person shall remain confidential unless that person 1
authorizes disclosure of the person's identity or until the allegation of proh ibited 2
conduct is referred to law enforcement. 3
(3) If the corporation receives a complaint of prohibited conduct by an athlete or 4
referee or other officiant, the corporation shall notify the appropriate sports 5
governing body of the athlete or referee or ot her officiant to review the complaint 6
as provided by the corporation. 7
(4) The corporation shall promulgate administrative regulations in accordance with 8
KRS Chapter 13A to govern investigations of prohibited conduct and referrals to 9
law enforcement agencies. 10
SECTION 9. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 11
READ AS FOLLOWS: 12
(1) A person shall not participate in a fantasy contest in which the person is a 13
restricted participant. 14
(2) A restricted participant may part icipate in fantasy contests that are outside the 15
scope of the individual's profession, relationship, or reason for which the 16
individual has access to nonpublic information. 17
(3) A person is guilty of tampering with the outcome of a fantasy contest when the 18
person interacts with a player, coach, referee or other officiants, or other 19
restricted participant with the intent to persuade the restricted participant to act 20
in a way that would: 21
(a) Alter the outcome of the real -life sporting event related to the fant asy 22
contest; or 23
(b) Alter actions within the real -life sporting event upon which people might 24
rely on for scoring points in a fantasy contest. 25
SECTION 10. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 26
READ AS FOLLOWS: 27
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(1) (a) A fantasy contest service provider that is currently licensed as a sports 1
wagering service provider under this chapter shall pay an: 2
1. Initial license fee of seven thousand five hundred dollars ($7,500); 3
and 4
2. Annual renewal fee of five thousand dollars ($5,000). 5
(b) A fantasy contest service provider that is not currently licensed as a sports 6
wagering service provider under this chapter shall pay an: 7
1. Initial license fee of fifteen thousand dollars ($15,000); and 8
2. Annual renewal fee of ten thousand dollars ($10,000). 9
(c) 1. As used in this paragraph: 10
a. "Adjusted gross fantasy contest receipts" means the total sum of 11
entry fees collected by a fantasy contest service provider from all 12
fantasy contest participants entering a fantasy contest, less 13
winnings paid to fantasy contest participants in the contest, 14
multiplied by the location percentage; and 15
b. "Location percentage" means the percentage of the total entry 16
fees for each fantasy contest collected from fantasy contest 17
participants located in the Commonwealth divided by the total 18
entry fees collected from all fantasy contest participants in the 19
fantasy contest, rounded to the nearest one -tenth of one percent 20
(0.1%). 21
2. A fantasy contest service provider that has less than fifty thousand 22
dollars ($50,000) a year in adjusted gross fantasy contest receipts shall 23
pay an: 24
a. Initial license fee of five thousand dollars ($5,000); and 25
b. Annual renewal fee of one thousand dollars ($1,000). 26
3. a. If a fantasy contest service provider exceeds the fifty thousand 27
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dollar ($50,000) threshold any year, the fantasy contest service 1
provider shall within ninety (90) days of exceeding that threshold 2
resubmit an application for licensure to the corporation and pay 3
the initial license fee and annual renewal fee that is applicable to 4
the fantasy contest service provider under paragraphs (a) and (b) 5
of this subsection. 6
b. The fantasy contest service provider shall only pay the difference 7
between the applicable initial license fee required in 8
subparagraph 3.a. of this paragraph and the previously paid 9
initial license fee in subparagraph 2.a. of this paragraph. 10
(2) A fantasy contest service provider that was offering contests to persons located in 11
this Commonwealth before the effective date of this Act may continue to offer 12
contests to persons located in this Commonwealth until the fantasy contest service 13
provider's application has been approved or denied, if the fantasy contest service 14
provider submits an application for licensure with the corporation within ninety 15
(90) days after the corporation promulgates administrative regulations to 16
effectuate Sections 4 to 11 of this Act. 17
(3) (a) Licenses issued by the corporation shall remain in effect for o ne (1) year. 18
The corporation shall promulgate administrative regulations in accordance 19
with KRS Chapter 13A to establish a process for renewal. 20
(b) A fantasy contest service provider may request in writing to the corporation 21
an extension to renew the fanta sy contest service provider's license. If the 22
fantasy contest service provider allows the license to lapse without 23
requesting an extension time to file, the fantasy contest service provider 24
shall resubmit an initial application. 25
(4) A fantasy contest servi ce provider applying for a license or renewal of a license 26
may operate during the application period unless the corporation: 27
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(a) Has reasonable cause to believe that the fantasy contest service provider is 1
or may be in violation of a provision of Sections 4 to 11 of this Act; and 2
(b) Requires the fantasy contest service provider to suspend the operation of 3
any fantasy contests until the license or renewal of a license is issued. 4
(5) The corporation shall enforce and collect all fees, penalties, taxes, and a ny other 5
payments imposed under this section. 6
SECTION 11. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 7
READ AS FOLLOWS: 8
(1) Each fantasy contest service provider shall include a statement regarding 9
obtaining assistance with real -money gaming problems on the fantasy contest 10
service provider's portal, website, computer, or mobile application and on all 11
marketing materials and advertisements of the fantasy contest service provider. 12
(2) (a) A resident, or nonresident if all owed to participate in fantasy contests, may 13
voluntarily prohibit himself or herself from establishing a fantasy contest 14
account with a fantasy contest service provider. 15
(b) The corporation shall incorporate the voluntary self -exclusion program for 16
fantasy contests into any existing self -exclusion program that it operates on 17
the effective date of this Act. 18
(3) If a self -excluded person participates in a fantasy contest, the fantasy contest 19
service provider shall report to the corporation, at a minimum, the name of the 20
self-excluded person, the date of participation, the amount or value of any money, 21
prizes, or awards forfeited, if any, and any other action taken. 22
(4) A fantasy contest service provider shall not pay any prize or award to a person 23
who is on th e corporation's self -exclusion list. Any prize or award won by a 24
person on the self -exclusion list is forfeited and shall be donated by the fantasy 25
contest service provider to the problem gaming charities or programs as identified 26
and directed by the corporation on a quarterly basis by the twenty -fifth day of the 27
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following month. 1
(5) A fantasy contest service provider shall develop and maintain a program to 2
mitigate and curtail compulsive play, which may be conducted in conjunction 3
with the corporation. 4
SECTION 12. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 5
READ AS FOLLOWS: 6
(1) There is hereby established in the corporation a restricted account to be known as 7
the purse stabilization fund. The fund shall consist of any moneys received from 8
the excise tax collected under Section 13 of this Act that derives from wagers 9
placed on horse racing. 10
(2) The fund shall be administered by the corporation. 11
(3) The amounts deposited in the fund: 12
(a) Shall be held in the restricted account for at least one and one -half (1-1/2) 13
years after the effective date of this Act; and 14
(b) Shall not be used except as the corporation determines is reasonably 15
necessary to supplement purses at live horse racing meets in an amount not 16
to exceed ten percent (10%) of the fund. 17
(4) Notwithstanding KRS 45.229, fund amounts not expended at the close of a fiscal 18
year shall not lapse but shall be carried forward into the next fiscal year. 19
Section 13. KRS 138.552 is amended to read as follows: 20
(1) As used in this section: 21
(a) "Adjusted gross fixed -odds wagering revenue " means the total sum of 22
wagers collected on all fixed -odds wagers on live horse racing and all 23
combination of bets of multiple individual wagers into one (1) bet that 24
includes one (1) or more fixed -odds wagers on live horse racing, less 25
winnings paid to p articipants in the contest and all excise taxes paid 26
pursuant to federal law; 27
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(b) "Adjusted gross sports wagering revenue" means the total sum of wagers 1
collected on all sporting events , except any combination of bets of multiple 2
individual wagers into one (1) bet that includes one (1) or more fixed -odds 3
wagers on live horse racing , less winnings paid to participants in the contest 4
and all excise taxes paid pursuant to federal law; 5
(c)[(b)] "Department" means Department of Revenue; 6
(d)[(c)] "Fixed-odds wagering" has the same meaning as in Section 1 of this 7
Act; 8
(e) "Sporting event" means an event at which two (2) or more persons 9
participate in athletic contests or an event that takes place in relation to 10
athletic contests as approved by the corporation, but shall not include horse 11
racing or amateur youth sports or athletic events in which the majority of 12
participants are under the age of eighteen (18) years [has the same meaning 13
as in KRS 230.210]; 14
(f)[(d)] "Sports wagering" means the wagering conducted under KRS Chapter 15
230 on sporting events or portions of sporting events, or on the individual 16
performance statistics of athletes in a sporting event or combination of 17
sporting events, in conformance with federal law and as authorized by the 18
corporation pursuant to KRS Chapter 230 [has the same meaning as in KRS 19
230.210]; and 20
(g)[(e)] "Taxpayer" means any person liable for tax under this section. 21
(2) An excise tax is imposed on persons licensed [ to conduct sports wagering] under 22
KRS 230.811 and 230.814 to conduct[at a rate of]: 23
(a) Sports wagering at a rate of: 24
1. Nine and three -quarters percent (9.75%) on the adjusted gross sports 25
wagering revenue on wagers placed at the licensed track; and 26
2.[(b)] Fourteen and one -quarter percent (14.25%) on the adjusted gross 27
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sports wagering revenue on wagers placed online via websites or mobile 1
applications or other off -site technology approved by the Kentucky 2
Horse Racing and Gaming Corporation; and 3
(b) Fixed-odds wagering at a rate of: 4
1. Nine and three -quarters percent (9.75%) on the adjusted gross fixed -5
odds wagering revenue of fixed -odds wagers on live horse racing 6
placed at the licensed track; and 7
2. Fourteen and one -quarter percent (14.25%) on the adjusted gross 8
fixed-odds wagering revenue of fixed-odds wagers on live horse racing 9
placed online via websites or mobile applications or other off -site 10
technology approved by the Kentucky Horse Racing and Gaming 11
Corporation. 12
(3) The excise taxes imposed in: 13
(a) Subsection (2)(a) of this section[ and] shall be transferred[appropriated] to 14
the sports wagering administration fund established in KRS 230.817 and 15
appropriated for the purposes established in that section; and 16
(b) Subsection (2)(b) of this section shall be transferred to the purse 17
stabilization fund established in Section 12 of this Act and appropriated for 18
the purposes established in that section. 19
(4)[(3)] The department shall enforce the provisions of and collect the taxes and 20
penalties imposed in this section, and in doing so it shall have the general powers 21
and duties granted it in KRS Chapters 131 and 135, including the power to enforce, 22
by an action in the Franklin Circuit Court, the collection of the taxes, penalties, and 23
other payments imposed or required by this section. 24
(5)[(4)] The tax imposed by this section is due and payable to the department monthly 25
and shall be remitted on or before the twentieth day of the next succeeding calendar 26
month. If a taxpayer's adjusted gross revenue for a month is a negative number, the 27
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taxpayer may carry over the negative amount to the return filed for the subsequent 1
month. However, no amount shall be carried over in any period more than twelve 2
(12) months after the month in which the amount carried over was originally due. 3
(6)[(5)] (a) Payment shall be accompanied by a return prescribed by the department. 4
(b) For sports wagering only, the return form shall report, at a minimum: 5
1. The total sum of wagers collected in person and electronically through a 6
mobile application; 7
2. Winnings paid in person and electronically through a mobile 8
application; 9
3. Adjusted gross revenue in person and electronically through a mobile 10
application; 11
4. Tax rates applied to adjusted gross revenue in person and electronically 12
through a mobile application; 13
5. The tax due from adjusted gross revenues in person and electronic ally 14
through a mobile application; 15
6. Federal excise taxes paid; and 16
7. The total wagering tax due. 17
(7)[(6)] Wagering taxes due and payable in accordance with this section shall be paid 18
via electronic funds transfer. The taxpayer shall provide the departme nt with all 19
protocol documentation and electronic funds transfer data necessary to facilitate the 20
timely transfer of funds. 21
(8)[(7)] Any taxpayer who violates any provision of this section shall be subject to the 22
uniform civil penalties imposed pursuant to KRS 131.180 and interest at the tax 23
interest rate as defined in KRS 131.010(6). 24
(9)[(8)] The Kentucky Horse Racing and Gaming Corporation may suspend, revoke, 25
or decline to renew a license upon the taxpayer's failure to timely submit payment 26
of taxes due under this section or the administrative regulations promulgated by the 27
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department. 1
(10)[(9)] The taxes imposed by this section shall be in lieu of all other state and local 2
taxes and fees imposed on the operation of, or the proceeds from, the operation of 3
sports wagering. 4
Section 14. KRS 230.215 is amended to read as follows: 5
(1) (a) It is the policy of the Commonwealth of Kentucky, in furtherance of its 6
responsibility to foster and to encourage legitimate occupations an d industries 7
in the Commonwealth and to promote and to conserve the public health, 8
safety, and welfare, and it is hereby declared the intent of the Commonwealth 9
to foster and to encourage the horse breeding industry within the 10
Commonwealth and to encourage the improvement of the breeds of horses. 11
(b) Further, it is the policy and intent of the Commonwealth to foster and to 12
encourage the business of legitimate horse racing with pari -mutuel wagering 13
thereon in the Commonwealth on the highest possible plane. Further, it hereby 14
is declared the policy and intent of the Commonwealth that all racing not 15
licensed under this chapter is a public nuisance and may be enjoined as such. 16
(c) Further, it is hereby declared the policy and intent of the Commonwealth that 17
the conduct of horse racing, or the participation in any way in horse racing, or 18
the entrance to or presence where horse racing is conducted, is a privilege and 19
not a personal right; and that this privilege may be granted or denied by the 20
corporation or its duly approved representatives acting in its behalf. 21
(d) Further, it is hereby declared the policy and intent of the Commonwealth that 22
citizens shall be allowed to enjoy wagering on sporting events in a controlled 23
environment that protects the citizens from c heating and fraud, and that such 24
wagering shall be best controlled and overseen by the Kentucky Horse Racing 25
and Gaming Corporation, which has demonstrated a long and successful 26
history of regulating wagering. 27
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(e) Further, it is hereby declared the policy and intent of the Commonwealth that 1
charitable gaming conducted by charitable organizations is an important 2
method of raising funds for legitimate charitable purposes and is in the public 3
interest. The intent of this chapter and KRS Chapter 238 is to preve nt the 4
commercialization of charitable gaming, to prevent participation in charitable 5
gaming by criminal and other undesirable elements, and to prevent the 6
diversion of funds from legitimate charitable purposes, and that charitable 7
gaming shall be overseen by the Kentucky Horse Racing and Gaming 8
Corporation. 9
(f) It is hereby declared the intent of the Commonwealth to vest in the 10
corporation the power to regulate the industries under its jurisdiction and 11
ensure compliance, transparency, and protection of the public in accordance 12
with applicable law. 13
(2) (a) It is hereby declared the purpose and intent of this chapter in the interest of 14
the public health, safety, and welfare, to vest in the corporation forceful 15
control of horse racing in the Commonwealth with power to promulgate 16
administrative regulations prescribing conditions under which all legitimate 17
horse racing and wagering thereon is conducted in the Commonwealth so as 18
to encourage the improvement of the breeds of horses in the Commonwealth, 19
to regulate and maintain horse racing at horse race meetings in the 20
Commonwealth of the highest quality and free of any corrupt, incompetent, 21
dishonest, or unprincipled horse racing practices, and to regulate and maintain 22
horse racing at race meetings in the Commonwea lth so as to dissipate any 23
cloud of association with the undesirable and maintain the appearance as well 24
as the fact of complete honesty and integrity of horse racing in the 25
Commonwealth. 26
(b) In addition, it is hereby declared the purpose and intent of thi s chapter to vest 27
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in the corporation exclusive jurisdiction over sports wagering , fantasy 1
contests, and fixed -odds wagering in the Commonwealth, with power to 2
promulgate administrative regulations prescribing conditions under which all 3
sports wagering , fan tasy contests, and fixed -odds wagering are [ is] to be 4
conducted. 5
(c) In addition to the general powers and duties vested in the corporation by this 6
chapter, it is the intent hereby to vest in the corporation the power to eject or 7
exclude from association g rounds or any part thereof any person, licensed or 8
unlicensed, whose conduct or reputation is such that his or her presence on 9
association grounds may, in the opinion of the corporation, reflect on the 10
honesty and integrity of horse racing or interfere wit h either the orderly 11
conduct of horse racing or the orderly conduct of sports wagering. 12
(d) In addition, it is hereby declared the purpose and intent of this chapter to vest 13
in the corporation exclusive jurisdiction over charitable gaming in the 14
Commonwealth, with power to promulgate administrative regulations 15
prescribing conditions under which all charitable gaming is to be conducted. 16
(e) In addition to the general powers and duties vested in the corporation by this 17
chapter, it is the intent hereby to vest in the corporation the power to eject or 18
exclude from charitable gaming facilities or any part thereof any person, 19
licensed or unlicensed, whose conduct or reputation is such that his or her 20
presence at a charitable gaming facility may, in the opinion of the corporation, 21
reflect on the honesty and integrity of charitable gaming or interfere with the 22
orderly conduct of charitable gaming. 23
Section 15. KRS 230.225 is amended to read as follows: 24
(1) There is hereby created an d established the Kentucky Horse Racing and Gaming 25
Corporation to regulate all forms of live horse racing, pari -mutuel wagering, sports 26
wagering, fantasy contests, fixed-odds wagering, breed integrity and development, 27
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and on and after July 1, 2025, charita ble gaming, in the Commonwealth, exclusive 1
of the state lottery established under KRS Chapter 154A. It shall be an independent, 2
de jure municipal corporation and political subdivision of the Commonwealth of 3
Kentucky which shall be a public body corporate a nd politic. The corporation shall 4
be deemed a public agency within the meaning of KRS 61.805 and 61.870. The 5
corporation shall be managed in such a manner that enables the people of the 6
Commonwealth to benefit from its actions and to enjoy the best possibl e racing and 7
gaming experiences. The General Assembly hereby recognizes that the operations 8
of racing and gaming are unique activities for state government and that a corporate 9
structure will best enable racing and gaming to be managed in a businesslike 10
manner. It is the intent of the General Assembly that the Kentucky Horse Racing 11
and Gaming Corporation shall be accountable to the Governor, the General 12
Assembly, and the people of the Commonwealth. 13
(2) (a) 1. The Auditor of Public Accounts shall perform an audit of the 14
corporation once every four (4) years, a copy of which shall be sent to 15
the Governor and the Legislative Research Commission. 16
2. A different auditing entity that is qualified to evaluate municipa l 17
corporations shall conduct an annual audit of the corporation once each 18
year in every year when the Auditor of Public Accounts does not 19
perform an audit. A copy of this audit shall be sent to the Governor and 20
Legislative Research Commission. 21
3. This first audit conducted under this subsection shall cover fiscal year 22
2024-2025. 23
(b) The corporation shall submit a written annual report to the Governor and the 24
Legislative Research Commission on or before October[July] 1 of each year.[ 25
The first report shall b e due July 1, 2025.] The corporation shall file any 26
additional reports requested by the Governor or the Legislative Research 27
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Commission. The annual report shall include the following information: 1
1. The receipts and disbursements of the corporation; and 2
2. Actions taken by the corporation. 3
(c) The corporation may submit any additional information and recommendations 4
that the corporation considers useful or that the Governor or the Legislative 5
Research Commission requests. 6
(3) The Kentucky Horse Racing and G aming Corporation shall be administered by a 7
board of directors to regulate the conduct of: 8
(a) Live horse racing; 9
(b) Pari-mutuel wagering; 10
(c) Sports wagering; 11
(d) Fantasy contests; 12
(e) Charitable gaming[ on and after July 1, 2025]; 13
(f)[(e)] Breed integrity and development; and 14
(g)[(f)] Related activities within the Commonwealth of Kentucky. 15
(4) (a) The corporation shall establish and maintain a general office for the 16
transaction of its business and may, in its discretion, establish a branch office 17
or offices. 18
(b) The corporation may hold meetings at any of its offices or at any other place 19
at its convenience. 20
(c) A majority of the voting members of the corporation shall constitute a quorum 21
for the transaction of its business or exercise of any of its powers. 22
(5) Except as otherwise provided, the corporation shall be responsible for the 23
following: 24
(a) Developing and implementing programs designed to ensure the safety and 25
well-being of horses, jockeys, and drivers; 26
(b) Developing programs and procedures that will fulfill its oversight and 27
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regulatory role on such matters as medical practices and integrity issues; 1
(c) Recommending tax incentives and implementing incentive programs to ensure 2
the strength and growth of the equine industry; 3
(d) Designing and imple menting programs that strengthen the ties between 4
Kentucky's horse industry and the state's universities, with the goal of 5
significantly increasing the economic impact of the horse industry on 6
Kentucky's economy, improving research for the purpose of promo ting the 7
enhanced health and welfare of the horse, and other related industry issues; 8
(e) Developing and supporting programs which ensure that Kentucky remains in 9
the forefront of equine research; 10
(f) Designing and implementing programs that support and ensure breed integrity 11
and development; 12
(g) Developing monitoring programs to ensure the highest integrity of sporting 13
events and sports wagering; 14
(h) Developing a program to share wagering information with sports governing 15
bodies upon which sports wagering may be conducted. The program shall be 16
designed to assist the corporation in determining potential problems or 17
questionable activity and provide repo rts to sports governing bodies 18
effectively; 19
(i) Developing and implementing programs to ensure the highest integrity of 20
fantasy contests; 21
(j) Developing programs and procedures that will fulfill its oversight and 22
regulatory role to ensure the highest integrity in charitable gaming; 23
(k)[(j)] Developing programs and procedures that will provide oversight and 24
regulation for all current forms of gaming and wagering; 25
(l)[(k)] Annually evaluating the allocation and use of funds among the purposes 26
listed in KRS 230.3612 from unredeemed pari-mutuel vouchers; and 27
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(m)[(l)] Ensuring that the correct responsibilities are assigned to each of its 1
offices as established in KRS 230.232. 2
(6) (a) The corporation shall conduct all procurements in accordance with procedures 3
which are not inconsistent with the provisions of KRS Chapter 45A and this 4
chapter; provided, however, that this chapter shall control if and to the extent 5
that any provision in this chapter is expressly inconsistent with any provision 6
of KRS Chapter 45A. 7
(b) The corporation may promulgate administrative regulations establishing its 8
procurement procedures. If the corporation elects to promulgate 9
administrative regulations establishing its procurement procedures rather than 10
conduct procurements in accordance with KRS Chapter 45A, the corporation 11
may include sections o f KRS Chapter 45A as part of its administrative 12
regulations. 13
(c) Major procurements for personal service contracts shall not be subject to the 14
requirements of KRS 45A.695(2)(b) due to the unique operational activities 15
conducted for state government by the corporation. The corporation's 16
procurement procedures or administrative regulations shall be designed to 17
provide for the purchase of supplies, equipment, services, and construction 18
items that provide the greatest long -term benefit to the state and the grea test 19
integrity for the corporation and the public. 20
(d) In its bidding and negotiation processes, the corporation may do its own 21
bidding and procurement, or may utilize the services of the Finance and 22
Administration Cabinet, or a combination thereof. The pr esident of the 23
corporation may, in lieu of the secretary of the Finance and Administration 24
Cabinet, declare an emergency for purchasing purposes. 25
(7) Corporation records shall be open and subject to public inspection in accordance 26
with KRS 61.870 to 61.884 unless: 27
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(a) A record is exempted from inspection under KRS 61.878; 1
(b) A record involves a trade secret or other legally protected intellectual property 2
or confidential proprietary information of the corporation or of an applicant, 3
licensee, individual, o r entity having submitted information of such character 4
to the corporation, in which case, the portion of the record relating to these 5
subjects may be closed; or 6
(c) The disclosure of the record could impair or adversely affect the operational 7
security of the corporation in the regulation of matters within its jurisdiction 8
or could impair or adversely impact the operational security of applicants or 9
licensees. 10
(8) Meetings of the corporation through its board of directors shall be open to the 11
public in acco rdance with KRS 61.800 to 61.850 unless the exceptions set forth in 12
KRS 61.810 apply or the meeting addresses trade secrets, confidential or 13
proprietary information, or operational security issues as described in subsection 14
(7)(c) of this section. If this is the case, the corporation may meet in closed session 15
and shall follow the procedures set forth in KRS 61.815. 16
(9) The corporation may participate in all state agency price contracts to the same 17
extent as agencies of the Commonwealth in accordance with KRS 45A.050(3). 18
(10) (a) The corporation is hereby authorized to accept and expend such moneys as 19
may be appropriated by the General Assembly or such moneys as may be 20
received from any source for effectuating its purposes, including without 21
limitation the payment of the initial expenses of administration and operation 22
of the corporation. 23
(b) After the transfer to the corporation of any funds appropriated in fiscal year 24
2024-2025 and fiscal year 2025 -2026 for the administration of this chapter 25
and KRS Chapter 238, the corporation shall be self-sustaining and self-funded 26
and moneys in the state general fund shall not be used or obligated to pay the 27
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expenses of the corporation. 1
(11) On July 1, 2024: 2
(a) The Kentucky Horse Racing and Gaming Corporation shall assu me all 3
responsibilities of the Kentucky Horse Racing Commission; 4
(b) The Kentucky Horse Racing Commission shall be abolished and all 5
employees of the Kentucky Horse Racing Commission are transferred to the 6
corporation; and 7
(c) All personnel, equipment, and funding shall be transferred from the Kentucky 8
Horse Racing Commission to the Kentucky Horse Racing and Gaming 9
Corporation. 10
(12) On July 1, 2025: 11
(a) The office regulating charitable gaming in the Kentucky Horse Racing and 12
Gaming Corporation shall assume all responsibilities of the Department of 13
Charitable Gaming; 14
(b) The Department of Charitable Gaming shall be abolished and all employees 15
of the Department of Charitable Gaming are transferred to the corporation; 16
and 17
(c) All personnel, equipment, and fundi ng shall be transferred from the 18
Department of Charitable Gaming to the Kentucky Horse Racing and Gaming 19
Corporation. 20
(13) Notwithstanding any other law to the contrary, nothing in this chapter or KRS 21
Chapter 238 shall authorize the corporation to: 22
(a) Regulate or control horse sales; 23
(b) Require the licensure of horse breeders in their capacity as breeders; 24
(c) Prohibit or re strict any approved, either by statute or administrative 25
regulation, game or charitable gaming activity in use in the Commonwealth as 26
of July 1, 2025, without action by the Kentucky General Assembly; or 27
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(d) Exercise jurisdiction over matters within the exc lusive national authority of 1
entities designated by the laws of the United States of America. 2
(14) This section shall not prohibit the corporation from denying, suspending, or 3
revoking a license, imposing probationary conditions on a license, issuing a 4
written reprimand or warning, imposing fines or penalties, issuing cease and 5
desist orders, or any combination thereof with regard to any licensee or person 6
participating in charitable gaming in Kentucky for a violation of any federal or 7
state statute, KRS Ch apter 238, or any administrative regulation promulgated by 8
the corporation pursuant to this chapter or KRS Chapter 238. 9
(15) The Attorney General has concurrent jurisdiction with the Commonwealth's 10
attorneys and county attorneys of this state for the enfor cement and prosecution 11
of offenses under this chapter and KRS Chapter 238. 12
(16) (a) A licensee required to submit a report to the corporation under this chapter 13
or KRS Chapter 238 shall submit with the report an attestation that the 14
report is true, correct, and complete to the best of the applicant's knowledge 15
and belief under penalty of perjury. 16
(b) Any information or data in the report provided to the corporation that is 17
substantially misleading or containing materially false information shall be 18
under pe nalty of refusal, suspension, or revocation of the license by the 19
corporation. 20
Section 16. KRS 230.227 is amended to read as follows: 21
(1) (a) The affairs and responsibilities of the corporation shall be administered by a 22
board of directors composed of seventeen (17) members. All seventeen (17) 23
members shall be appointed by the Governor. 24
(b) The Governor shall appoint a chair and vice chair of the board, subject to the 25
advice and consent of the Senate. A chair or vice chai r appointed when the 26
Senate is not in session shall serve only until the next regular session, or 27
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special session if such matter is included in the call therefor of the General 1
Assembly, at which time the chair or vice chair shall be subject to 2
confirmation by the Senate. If the Senate is not in session, the appointments 3
shall be subject to review by the Interim Joint Committee on State 4
Government, which shall hold a public hearing and shall transmit its 5
recommendations to the Senate. If the Senate refuses to confirm the chair or 6
vice chair, then the chair or vice chair shall forfeit the office as of the date on 7
which the Senate refuses to confirm the chair or vice chair. 8
(c) Members of the board appointed by the Governor shall serve a term of four 9
(4) years unless a member is removed, except the initial appointments under 10
subsection (6)(c) of this section shall be as follows: 11
1. Two (2) year terms shall be served by: 12
a. The five (5) members appointed under subsection (2)(b)2., 4., 6., 13
8., and 11. of this section; 14
b. Two (2) appointees under subsection (2)(b)1. of this section; 15
c. One (1) appointee under subsection (2)(b)5. of this section; and 16
d. One (1) appointee under subsection (2)(b)9. of this section; and 17
2. Three (3) year terms shall be served by: 18
a. The three (3) members appointed under subsection (2)(b)3., 7., and 19
10. of this section; 20
b. One (1) appointee under subsection (2)(b)1. of this section; 21
c. Two (2) appointees under subsection (2)(b)5. of this section; and 22
d. Two (2) appointees under subsection (2)(b)9. of this section. 23
(2) For appointments of the board of directors: 24
(a) Any member appointed to fill a vacancy occurring other than by expiration of 25
a term shall be appointed for the remainder of the unexpired term; and 26
(b) In making appointments, the Governor shall appoint members who meet the 27
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following qualifications: 1
1. Three (3) members who represent the Thoroughbred industry; 2
2. One (1) member who represents the standardbred industry; 3
3. One (1) equine veterinarian who currently practices with race horses; 4
4. One (1) member shall be selected based on his or her training and 5
experience in the fields of investigation and law enforcement; 6
5. Three (3) experts in the gaming industry, with knowledge about the 7
technical and log istical sides of the wagering experience. At least one 8
(1) of these experts shall have expertise in the technical and logistical 9
sides of pari-mutuel wagering on previously run horse races; 10
6. One (1) expert in the operational aspects of the horse industry , with 11
particular knowledge of horse breeding; 12
7. One (1) expert in the operational aspects of the horse industry, with 13
particular knowledge of horse racing; 14
8. One (1) horse trainer licensed under this chapter; 15
9. Three (3) charitable gaming representatives; 16
10. One (1) member who represents the quarter horse industry; and 17
11. One (1) at -large member with no financial interest in the business or 18
industry regulated. 19
(3) (a) A member of the board of directors, by himself or herself or through others, 20
shall not knowingly: 21
1. Use or attempt to use the member's influence in any manner which 22
involves a substantial conflict between his or her personal or private 23
interest and the member's duties to the corporation; 24
2. Use or attempt to use any means to influence th e corporation in 25
derogation of the corporation; 26
3. Use the member's official position or office to obtain financial gain for 27
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himself or herself, or any spouse, parent, brother, sister, or child of the 1
director; or 2
4. Use or attempt to use his or her offici al position to secure or create 3
privileges, exemptions, advantages, or treatment for the member or 4
others in derogation of the interests of the corporation or of the 5
Commonwealth. 6
(b) A director shall not appear before the board or the corporation in any m anner 7
other than as a director. 8
(c) A director shall abstain from action on an official decision in which he or she 9
has or may have a personal or private interest, and shall disclose the existence 10
of that personal or private interest in writing to each oth er member of the 11
board on the same day on which the director becomes aware that the interest 12
exists or that an official decision may be under consideration by the board. 13
This disclosure shall cause the decision on these matters to be made in a 14
meeting of the members of the board who do not have the conflict from which 15
meeting the director shall be absent and from all votes on which matters the 16
director shall abstain. 17
(d) In determining whether to abstain from action on an official decision because 18
of a poss ible conflict of interest, a director shall consider the following 19
guidelines: 20
1. Whether a substantial threat to the director's independence of judgment 21
has been created by his or her personal or private interest; 22
2. The effect of the director's participa tion on public confidence in the 23
integrity of the corporation and of racing and gaming; 24
3. Whether the director's participation is likely to have any significant 25
effect on the disposition of the matter; 26
4. The need for the director's particular contributio n, such as special 27
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knowledge of the subject matter, to the effective functioning of the 1
corporation; and 2
5. Whether the official decision will affect the director in a manner 3
differently from the public, or will affect him or her as a member of a 4
business, profession, occupation, or group to no greater extent generally 5
than other members of the director's business, profession, occupation, or 6
group. 7
Any director may request a vote of the disinterested members of the board on 8
whether any director shall abstain from action on an official decision. 9
(e) A director shall not knowingly disclose or use confidential information 10
acquired in the course of his or her official duties in order to further the 11
director's own economic interests, or those of any person. 12
(f) A director shall not knowingly receive, dire ctly or indirectly, any interest or 13
profit arising from the use or loan of corporation funds or funds to be raised 14
through the corporation. 15
(g) A director shall not knowingly accept compensation, other than that provided 16
in this section for directors, for performance of his or her official duties. 17
(h) A present or former director shall not, within one (1) year following 18
termination of the director's membership on the board, accept employment, 19
compensation, or other economic benefit from any person or busine ss that 20
contracts or does business with the corporation in matters in which he or she 21
was directly involved during the director's tenure. This provision shall not 22
prohibit an individual from continuing in the same business, firm, occupation, 23
or profession in which he or she was involved prior to becoming a director, 24
provided that, for a period of one (1) year following termination of his or her 25
position as a director, the director personally refrains from working on any 26
matter in which the director was dire ctly involved as a director. A director's 27
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involvement in an official decision or other action of the corporation 1
impacting a broad class of persons or entities, and affecting the director to no 2
greater extent generally than the members of the class, shall not prohibit the 3
director's employment or engagement as a member of the class for any period 4
after service as a director. 5
(i) A director, or a spouse, child, brother, sister, or parent of that director shall 6
not have a financial interest of more than five percent (5%) of the total value 7
of any vendor, other supplier of goods or services to the corporation, or 8
related entity. The corporation shall provide each member of the board with a 9
list of all current vendors, which shall be updated on at least a quarterly basis. 10
(4) The board of directors shall: 11
(a) Approve, disapprove, amend, or modify the budget recommended by the 12
president for the operation of the corporation; 13
(b) Approve, disapprove, amend, or modify the terms of major procurements 14
recommended by the president; 15
(c) Determine whether to recommend administrative regulations to carry out and 16
implement its powers and duties, the operation of the corporation, the conduct 17
of live horse racing, pari -mutuel wagering, sports wagering, fantasy contests, 18
fixed-odds wagering, breed integrity and development, and on and after July 19
1, 2025, charitable gaming, and any other matters necessary or desirable for 20
the efficient and effective operation of the corporation or convenience of the 21
public; 22
(d) Review the performance of the corporation and: 23
1. Advise the president and make recommendations to him or her 24
regarding operations of the corporation; 25
2. Identify potential improvements in this chapter, the administrative 26
regulations of the corporation, and the management o f the corporation; 27
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and 1
3. Request from the corporation any information the board determines to 2
be relevant to its duties; and 3
(e) Provide the president with private -sector perspectives on the operation of a 4
racing and gaming enterprise. 5
(5) In all other matters, the board shall advise and make recommendations. 6
(6) (a) The initial members of the board shall be the members of the Kentucky Horse 7
Racing Commission serving as of July 1, 2024. Those members shall continue 8
to serve as board members of the corporation for two (2) additional years until 9
July 1, 2026. The initial three (3) board members of the corporation who are 10
charitable gaming representatives shall be appointed on or after March 27, 11
2025, to serve until July 1, 2026. 12
(b) Any board member vacancy t hat occurs between July 1, 2024, and July 1, 13
2026, shall be filled by appointment for the remainder of that time period. An 14
appointment of the chair or vice chair created by a vacancy between July 1, 15
2024, and July 1, 2026, shall require confirmation of th e appointment by the 16
Senate as provided in KRS 11.160 and subsection (1) of this section. 17
(c) Beginning on July 1, 2026, board members shall be appointed for initial and 18
regular terms in accordance with this section. 19
(7) (a) Members of the board shall receive no compensation for serving on the board, 20
but shall be reimbursed for travel expenses for attending meetings and 21
performing other official functions consistent with the reimbursement policy 22
for state employees established by KRS 45.101 and administrati ve regulations 23
promulgated thereunder. 24
(b) The vice chair may act in the absence of the chair. 25
(c) Before entering upon the discharge of their duties, all members of the board of 26
directors of the Kentucky Horse Racing and Gaming Corporation shall take 27
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the constitutional oath of office. 1
(8) (a) All persons appointed to the corporation shall be of good moral character and 2
shall not have been convicted of, or under indictment for, a felony in 3
Kentucky, in any other state, in federal court, or in a foreign country. 4
(b) A board member of the corporation, or any family member of a member of 5
the corporation, at the time of appointment or during the member's tenure on 6
the corporation, shall not be a member of the legislature, a person holding any 7
elective office in the state government, or any officer or official of any 8
political party. 9
(9) Each appointed board member of the corporation shall be required to undergo a 10
national and state criminal background investigation. The criminal background 11
investigation shall be by means of a fingerprint check by the Department of 12
Kentucky State Police or equivalent state police body in the member's home state 13
and the Federal Bureau of Investigation, pursuant to the following requirements: 14
(a) The member shall provide his or her f ingerprints to the Department of 15
Kentucky State Police, or equivalent state police body in the member's home 16
state, for submission to the Federal Bureau of Investigation after a state 17
criminal background check is conducted; 18
(b) The results of the national and state criminal background check shall be sent 19
to the corporation; 20
(c) The corporation shall be prohibited from releasing any criminal history record 21
information to any private or public entity, or authorizing receipt by such 22
private or public entity; and 23
(d) Any fee charged by the Department of Kentucky State Police or the F ederal 24
Bureau of Investigation shall be an amount no greater than the actual cost of 25
processing the request and conducting the background check. The corporation 26
may charge this fee to the member. 27
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(10) (a) The Governor may remove any board member for misfea sance, malfeasance, 1
or nonfeasance in office. 2
(b) The removal may be made after the member has been served with a copy of 3
the charges against him or her and the member has a public hearing, if 4
requested. 5
(c) The member charged may request a public hearing. The request shall be in 6
writing and shall be submitted to the Governor's office within ten (10) days of 7
the service of charges upon the member. 8
(d) If a public hearing is timely requested, the hearing shall be held before a 9
hearing officer appointed by th e Governor. The hearing officer shall make 10
findings of fact and conclusions of law based upon the record of the hearing, 11
and shall provide the Governor with a recommendation for action. The 12
Governor's final decision, after recommendation by the hearing off icer, may 13
be appealed to the Circuit Court of the county in which the cause of action 14
arose. 15
(11) Members of the board of directors shall be subject to all applicable provisions of 16
KRS Chapter 11A, except that this chapter shall control if and to the exten t that any 17
provision in this chapter is expressly inconsistent with any provision of KRS 18
Chapter 11A. 19
(12) The provisions of KRS Chapters 18A and 64 shall not apply to the board, president, 20
managers, or staff of the corporation. 21
Section 17. KRS 230.232 is amended to read as follows: 22
(1) The president of the Kentucky Horse Racing and Gaming Corporation shall 23
establish offices within the corporation. Each office shall have specific duties 24
assigned by the president. Topics a ddressed by the offices shall include but not be 25
limited to the following: 26
(a) Pari-mutuel wagering; 27
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(b) Live horse racing; 1
(c) Breed development and integrity; 2
(d) Sports wagering; 3
(e) Fantasy contests; 4
(f) Fixed-odds wagering; 5
(g) Licensing, compliance, and investigations; and 6
(h)[(f)] Charitable gaming. 7
(2) Each office shall be led by an office manager, and the president shall appoint the 8
manager of each office. 9
(3) Each office may propose the promulgation of administrative regulations related to 10
its area of jurisdiction, but the corporation shall have final authority to promulgate 11
administrative regulations under this chapter and on and after July 1, 2025, final 12
authority to promulgate administrative regulations under KRS Chapter 238. 13
(4) The Office of C haritable Gaming shall be responsible for making formal 14
recommendations to the president on the following matters: 15
(a) Advancement of legal charitable gaming in the Commonwealth; 16
(b) Recommendations to ensure the highest integrity of charitable gaming 17
activities and that Kentucky advances lawful charitable gaming; 18
(c) Recommending programs and policy changes to ensure the strength and 19
growth of charitable gaming and the charitable gaming industry; and 20
(d) Monitoring and analyzing charitable organizations an d technology needs of 21
the charitable gaming industry to determine how best to satisfy those needs. 22
Section 18. KRS 230.260 is amended to read as follows: 23
The corporation shall have all powers necessary and proper to carry out and effectuate the 24
purposes and provisions of this chapter on and after July 1, 2024, and the purposes and 25
provisions of KRS Chapter 238 on and after July 1, 2025, including but not li mited to the 26
following: 27
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(1) The corporation is vested with jurisdiction and supervision over all live horse 1
racing, pari -mutuel wagering, sports wagering, fantasy contests, fixed -odds 2
wagering, breed integrity and development, and on and after July 1, 2025 , 3
charitable gaming, except for lottery games authorized under KRS Chapter 154A, 4
in this Commonwealth and over all associations and all persons on association 5
grounds and may eject or exclude therefrom or any part thereof, any person, 6
licensed or unlicense d, whose conduct or reputation is such that the person's 7
presence on association grounds may, in the opinion of the corporation, negatively 8
reflect on the honesty and integrity of horse racing, or on sporting events upon 9
which sports wagers may be placed, or interfere with the orderly conduct of horse 10
racing or racing at horse race meetings, but no persons shall be excluded or ejected 11
from association grounds solely on the ground of race, color, creed, national origin, 12
ancestry, or sex; 13
(2) The corporation is vested with jurisdiction over any person or entity that offers 14
advance deposit account wagering to Kentucky residents. Any such person or entity 15
under the jurisdiction of the corporation shall be licensed by the corporation, and 16
the corporation may impo se a license fee not to exceed ten thousand dollars 17
($10,000) annually. The corporation may, by administrative regulation promulgated 18
in accordance with KRS Chapter 13A, establish conditions and procedures for the 19
licensing of advance deposit account wager ing providers to include but not be 20
limited to: 21
(a) A fee schedule for applications for licensure; and 22
(b) Reporting requirements to include quarterly reporting on: 23
1. The amount wagered on Kentucky races; and 24
2. The total amount wagered by Kentuckians; 25
(3) The corporation is vested with jurisdiction over any totalizator company that 26
provides totalizator services to a racing association located in the Commonwealth. 27
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A totalizator company under the jurisdiction of the corporation shall be licensed by 1
the corp oration, regardless of whether a totalizator company is located in the 2
Commonwealth or operates from a location or locations outside of the 3
Commonwealth, and the corporation may impose a license fee on a totalizator 4
company. The corporation may, by adminis trative regulation promulgated in 5
accordance with KRS Chapter 13A, establish conditions and procedures for the 6
licensing of totalizator companies, and a fee schedule for applications for licensure; 7
(4) The corporation is vested with jurisdiction over any m anufacturer, wholesaler, 8
distributor, or vendor of any equine drug, medication, therapeutic substance, or 9
metabolic derivative which is purchased by or delivered to a licensee or other 10
person participating in Kentucky horse racing by means of the internet, mail 11
delivery, in-person delivery, or other means; 12
(5) The corporation is vested with jurisdiction over any horse training center or facility 13
in the Commonwealth that records official timed workouts for publication; 14
(6) The corporation may require an applicant for a license under subsection (2) or (3) of 15
this section to submit to a background check of the applicant, or of any individual 16
or organization associated with the applicant. An applicant shall be required to 17
reimburse the corporation for the cost of any background check conducted; 18
(7) The corporation, its representatives and employees, may visit, investigate, and have 19
free access to the office, track, facilities, or other places of business of any licensee, 20
or any person owning a horse or performing services regulated by this chapter on a 21
horse registered to participate in a breeders incentive fund under the jurisdiction of 22
the corporation; 23
(8) The corporation may prescribe necessary and reasonable administrative regulations 24
and conditions under which horse racing at a horse race meeting shall be conducted 25
in this state and to fix and regulate the minimum amount of purses, stakes, or 26
awards to be offered for the conduct of any horse race meeting; 27
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(9) Applications for licenses may be made in the form a nd manner and contain 1
information as required by the corporation through the promulgation of 2
administrative regulations. Fees for all licenses issued under KRS 230.310 shall be 3
prescribed by and paid to the corporation; 4
(10) The corporation may establish b y administrative regulation minimum fees for 5
jockeys to be effective in the absence of a contract between an employing owner or 6
trainer and a jockey. The minimum fees shall be no less than those of July 1, 1985; 7
(11) The corporation may refuse to issue or renew a license, revoke or suspend a license, 8
impose probationary conditions on a license, issue a written reprimand or 9
admonishment, impose fines or penalties, deny purse money, require the forfeiture 10
of purse money, or any combination thereof with regard to a licensee or other 11
person participating in Kentucky horse racing for violation of any federal or state 12
statute, regulation, or steward's or corporation's directive, ruling, or order to 13
preserve the integrity of Kentucky horse racing or to protect the racing public. The 14
corporation may, by administrative regulation, establish the criteria for taking the 15
actions described in this subsection; 16
(12) The corporation may issue subpoenas for the attendance of witnesses before it and 17
for the production of docum ents, records, papers, books, supplies, devices, 18
equipment, and all other instrumentalities related to live horse racing, pari -mutuel 19
wagering, sports wagering, fantasy contests, fixed -odds wagering, breed integrity 20
and development, and on and after July 1 , 2025, charitable gaming, within the 21
Commonwealth. The corporation may administer oaths to witnesses and require 22
witnesses to testify under oath whenever, in the judgment of the corporation, it is 23
necessary to do so for the effectual discharge of its duties; 24
(13) The corporation shall have authority to compel any racing association licensed 25
under this chapter to file with the corporation at the end of its fiscal year, a balance 26
sheet, showing assets and liabilities, and an earnings statement, together with a list 27
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of its stockholders or other persons holding a beneficial interest in the association; 1
(14) The corporation may promulgate administrative regulations establishing safety 2
standards for jockeys, which shall include the use of rib protection equipment . Rib 3
protection equipment shall not be included in a jockey's weight; 4
(15) (a) The corporation shall[may] promulgate administrative regulations in 5
accordance with KRS Chapter 13A to establish:[establishing] 6
1. A self-exclusion list for individuals who sel f-identify as being problem 7
or compulsive gamblers; 8
2. A process for compilation and maintenance of the self-exclusion list; 9
3. A process for dissemination of the self-exclusion list; and 10
4. A process for notifying the public of the methods an individual m ay 11
use to self-identify. 12
(b) Self-exclusion information collected by each required licensee [racing 13
association] shall be forwarded to the corporation [, and the information from 14
the racing associations shall be compiled into a comprehensive list that shall 15
be provided to all racing associations]. 16
(c) Pursuant to KRS 61.878(1)(a), information collected under this subsection 17
shall be excluded from the application of KRS 61.870 to 61.884; 18
(16) (a) The corporation may promulgate administrative regulations to establish 19
standards for the conduct of sports wa gering, including standards for 20
receiving and paying out wagers, offering sports wagering through a website 21
or mobile application, maintaining and auditing books and financial records, 22
securely maintaining records of bets and wagers, integrity requirements for 23
sports wagering and related data, suitability requirements for providers of 24
associated equipment, geofence standards for wager placement, designated 25
areas for sports wagering, surveillance and monitoring systems, and other 26
reasonable technical criteria related to conducting sports wagering. 27
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(b) The corporation may promulgate administrative regulations related to age 1
requirements for placing sports wagers, availability of information related to 2
sports wagers, and licensing requirements, including tempor ary 3
authorizations, for service providers, vendors, and suppliers; and 4
(17) (a) On and after July 1, 2025, the corporation is vested with jurisdiction and 5
supervision over all charitable gaming and may promulgate administrative 6
regulations to establish sta ndards for the conduct of charitable gaming 7
consistent with the guidelines established in this chapter and KRS Chapter 8
238. The corporation may eject or exclude therefrom or any part thereof, any 9
person, licensed or unlicensed, whose conduct or reputation is such that the 10
person's presence at a charitable gaming facility may, in the opinion of the 11
corporation, negatively reflect on the honesty and integrity of charitable 12
gaming, or interfere with the orderly conduct of charitable gaming at a 13
charitable gaming facility, but no persons shall be excluded or ejected from a 14
charitable gaming facility solely on the ground of race, color, creed, national 15
origin, ancestry, or sex. 16
(b) The administrative regulations of the Kentucky Horse Racing Commission 17
that are in effect on July 1, 2024, shall remain in effect as the initial 18
administrative regulations of the corporation until the corporation amends or 19
repeals the administrative regulations pursuant to KRS Chapter 13A, except 20
as provided by KRS 13A.3102, 13A.3104, and 13A.330. 21
(c) The administrative regulations of the Department of Charitable Gaming that 22
are in effect on July 1, 2025, shall remain in effect as the initial administrative 23
regulations of the corporation until the corporation amends or repeals the 24
administrative regulations pursuant to KRS Chapter 13A, except as provided 25
by KRS 13A.3102, 13A.3104, and 13A.330. 26
Section 19. KRS 230.300 is amended to read as follows: 27
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(1) Any person desiring to conduct horse racing at a hor se race meeting within the 1
Commonwealth of Kentucky or to engage in simulcasting and intertrack wagering 2
as a receiving track during any calendar year shall first apply to the corporation for 3
a license to do so. The application shall be filed at the corpor ation's general office 4
on or before October 1 of the preceding year with respect to applications to conduct 5
live horse race meetings, and with respect to intertrack wagering dates, and on 6
forms prescribed by the corporation. The application shall include t he following 7
information: 8
(a) The full name and address of the person making application; 9
(b) The location of the place, track, or enclosure where the applicant proposes to 10
conduct horse racing meetings; 11
(c) The dates on which the applicant intends to cond uct horse racing, which shall 12
be successive days unless authorized by the corporation; 13
(d) The proposed hours of each racing day and the number of races to be 14
conducted; 15
(e) The names and addresses of all principals associated with the applicant or 16
licensee; 17
(f) The type of organizational structure under which the applicant operates, i.e., 18
partnership, trust, association, limited liability company, or corporation, and 19
the address of the principal place of business of the organization; 20
(g) Any criminal activ ities in any jurisdiction for which any individual listed 21
under paragraphs (a) and (e) has been arrested or indicted and the disposition 22
of the charges, and any current or on -going criminal investigation of which 23
any of these individuals is the subject; and 24
(h) Any other information that the corporation by administrative regulation deems 25
relevant and necessary to determine the fitness of the applicant to receive a 26
license, including fingerprints of any individual listed under paragraphs (a) 27
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and (e), if nece ssary for proper identification of the individual or a 1
determination of suitability to be associated with a licensed racing association. 2
(2) An application for association license shall be accompanied by the following 3
documents: 4
(a) For a new license applicant, a financial statement prepared and attested to by a 5
certified public accountant in accordance with generally accepted accounting 6
principles, showing the following: 7
1. The net worth of the applicant; 8
2. Any debts or financial obligations owed by the applicant and the persons 9
to whom owed; and 10
3. The proposed or current financing structure for the operation and the 11
sources of financing. 12
(b) For a license renewal applicant, an audited financial statement for the prior 13
year; 14
(c) A copy of the applicant's federal and state tax return for the previous year. 15
Tax returns submitted in accordance with this provision shall be treated as 16
confidential; 17
(d) A statement from the Department of Revenue that there are no delinquent 18
taxes or other financial obligations owed by the applicant to the state or any of 19
its agencies or departments; 20
(e) A statement from the county treasurer of the county in which the applicant 21
conducts or proposes to conduct horse racing meetings that there are no 22
delinquent real or personal property taxes owed by the applicant. 23
(3) The completed application shall be signed by the applicant or the chief executive 24
officer if the applicant is an organization, sworn under oath that the information is 25
true, accurate, and complete, and the application shall be notarized. 26
(4) If there is an y change in any information submitted in the application process, the 27
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applicant or licensee shall notify the corporation within thirty (30) days of the 1
change. 2
(5) (a) The corporation shall as soon as practicable, but in no event later than 3
November 1 in a ny calendar year, award dates for racing in the 4
Commonwealth during the next year. In awarding dates, the corporation shall 5
consider and seek to preserve each track's usual and customary dates, as these 6
dates are requested. If dates other than the usual an d customary dates are 7
requested, the applicant shall include a statement in its application setting 8
forth the reasons the requested dates are sought. Dates for the conduct of 9
intertrack wagering shall be awarded as provided in KRS 230.377. [ In the 10
event scheduled racing is canceled by reason of flood, fire, inclement weather, 11
or other natural disaster or emergency, the corporation may award after 12
November 1 additional racing dates to make up for those dates canceled.] 13
(b) After November 1, the corporation m ay authorize additional racing dates or 14
otherwise make adjustments or amendments to the racing dates awarded if 15
doing so is requested by the licensed association, supported by the 16
applicable horsemen's group, deemed to be in the best interest of racing, 17
and, if the change impacts the race dates of another licensed association, 18
only with the affected licensed association's express written consent. 19
(6) The corporation may issue a license to conduct a horse race meeting to any 20
association making the aforesaid application if the applicant meets the requirements 21
established in KRS 138.530 and other applicable provisions of this chapter, and if 22
the corporation finds that the proposed conduct of racing by the association would 23
be in the best interest of the public health, safety, and welfare of the immediate 24
community as well as to the Commonwealth. 25
(7) As a condition precedent to the issuance of a license, the corporation may require a 26
surety bond or other surety conditioned upon the payment of all taxes due the 27
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Commonwealth, together with the payment of operating expenses including purses 1
and awards to owners of horses participating in races. 2
(8) The corporation may impose a fee and may establish, by administrative regulation 3
promulgated in accordance with KRS Chap ter 13A, a fee schedule for association 4
license applications. 5
(9) The corporation may require an applicant for an association license to submit to a 6
background check of the applicant, or of any principal, individual, or organization 7
associated with the applicant. The corporation shall not require a background check 8
for any individual who is a principal as defined in KRS 230.210 but owns stock or 9
financial interest in the applicant of less than ten percent (10%). An applicant shall 10
be required to reimburse t he corporation for the cost of any background check 11
conducted. 12
(10) Every license issued under this chapter shall specify among other things the name 13
of the person to whom issued, the address and location of the track where the horse 14
race meeting to which it relates is to be held or conducted, and the days and hours 15
of the day when the meeting will be permitted; provided, however, that no track that 16
is granted overlapping dates for the conduct of a live race meeting with another 17
horse racing track within a fifty (50) mile radius shall be permitted to have a post 18
time after 5:30 p.m., prevailing time for overlapping days between July 1 and 19
September 15, unless agreed to in writing by the tracks affected. 20
(11) A license issued under this section is neither tra nsferable nor assignable and shall 21
not permit the conduct of a horse race meeting at any track not specified therein. 22
However, if the track specified becomes unsuitable for racing because of flood, fire, 23
or other catastrophe, the corporation may, upon appl ication, authorize the meeting, 24
or any remaining portion thereof, to be conducted at any other suitable track 25
available for that purpose, provided that the owner of the track willingly consents to 26
the use thereof. 27
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(12) Horse racing dates may be awarded and licenses issued authorizing horse racing on 1
any day of the year. Horse racing shall be held or conducted only between sunrise 2
and midnight. 3
(13) The corporation may at any time require the removal of any official or employee of 4
any association in those in stances where it has reason to believe that the official or 5
employee has been guilty of any dishonest practice in connection with horse racing 6
or has failed to comply with any condition of his or her license or has violated any 7
law or any administrative regulation of the corporation. 8
(14) Every horse race not licensed under this section is hereby declared to be a public 9
nuisance and the corporation may obtain an injunction against the same in the 10
Circuit Court of the county where the unlicensed race is proposed to take place. 11
(15) (a) A licensee or applicant under this chapter, KRS Chapter 238, or any other 12
licensee that the corporation has authority over, shall not be issued a license 13
or be allowed to renew a license if there is a failure by the licensee or 14
applicant to pay any taxes imposed under KRS 138.510, 138.513, 138.552, 15
in addition to any other taxes, license fees, or any other payments required 16
to the Commonwealth under this chapter and KRS Chapters 132, 138, 139, 17
141, and 238 including but not limited to: 18
1. Any financial obligations related to the following: 19
a. Parimutuel wagering; 20
b. Advance deposit wagering; 21
c. Sports wagering; 22
d. Fantasy contests; 23
e. Event contracts; or 24
f. Charitable gaming; or 25
2. Any transactions or fees or any other financial obligations owed to the 26
state or any of its agencies or departments. 27
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(b) The Department of Revenue may provide information to the corporation 1
pertaining to a potential applicant or licensee in paragraph (a) as permitted 2
by Section 53 of this Act. 3
Section 20. KRS 230.310 is amended to read as follows: 4
(1) (a) Every person not required to be licensed under KRS 230.300 who desires to 5
participate in horse racing in the Commonwealth as a horse owner, trainer, 6
jockey, apprentice jockey, agent, stable employee, racing official, association 7
employee, or employee of a person or concern contracting with the 8
association to provide a service or commodity and which requires their 9
presence on association grounds during a race meeting, o r veterinarian, 10
farrier, horse dentist, or supplier of food, tack, medication, or horse feed, or in 11
any other capacity as the corporation may establish by administrative 12
regulation, shall first apply to the corporation for a license to participate in the 13
activity on association grounds during a race meeting. A[No] person required 14
to be licensed by this section shall not [may] participate in any activity 15
required to be licensed on association grounds during a race meeting without a 16
valid license therefor. 17
(b) An applicant for a license shall submit to the corporation fingerprints as may 18
be required and other information necessary and reasonable for processing a 19
license application. The corporation is authorized to exchange fingerprint data 20
with the Departme nt of Kentucky State Police and the Federal Bureau of 21
Investigation in order to conduct a criminal history background check of an 22
applicant. 23
(c) The corporation may issue a license if it finds that the financial responsibility, 24
age, experience, reputation, competence, and general fitness of the applicant 25
to perform the activity permitted by a license are consistent with the best 26
interest of racing and the maintenance of the honesty, integrity, and high 27
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quality thereof. 1
(2) (a) Every person who desires to pa rticipate in sports wagering in the 2
Commonwealth working in a licensed facility for sports wagering, directly 3
supervising individuals who have the capability of affecting the outcome of 4
sports wagering, or having the capability to affect the outcome of spo rts 5
wagering through deployment of code to production for any critical 6
component of a sports wagering system or the capability to deploy code to 7
production shall first apply to the corporation for a valid occupational license 8
to participate in that activity. 9
(b) An applicant for an occupational license shall submit to the corporation 10
fingerprints as may be required and other information necessary and 11
reasonable for processing a license application. The corporation is authorized 12
to exchange fingerprint data with the Department of Kentucky State Police 13
and the Federal Bureau of Investigation in order to conduct a criminal history 14
background check of an applicant. 15
(c) The corporation may issue a license if it finds that the financial responsibility, 16
age, experience, reputation, competence, and general fitness of the applicant 17
to perform the activity permitted by a license are consistent with the best 18
interest of sports wagering in the Commonwealth, and the maintenance of the 19
honesty, integrity, and high quality thereof. 20
(3) (a) As used in this subsection: 21
1. "Affiliate" means an entity that is owned or controlled in whole or in 22
part by the licensee; and 23
2. "Beneficial interest" means participation in the proceeds of charitable 24
gaming either as a licensee, operato r, or charitable recipient of the 25
proceeds of the charity or foundation that receives proceeds. 26
(b) An association or track that holds a license to conduct racing under this 27
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chapter, or its affiliate, shall not hold a license to conduct charitable 1
gaming u nder KRS Chapter 238 or have a beneficial interest in the 2
proceeds of charitable gaming. 3
(c) This subsection shall not prevent an association or track that holds a license 4
to conduct racing under this chapter, or its affiliate, from: 5
1. Leasing space to a charitable organization or nonprofit organization 6
at a commercially reasonable rate; or 7
2. Conducting raffles or other special limited charity fundraising events 8
as authorized by the corporation. 9
(d) Every person who desires to be licensed to participate i n charitable gaming 10
shall first meet the standards of this chapter and the standards established in 11
KRS Chapter 238. 12
(e) The corporation may issue a license if it finds that the financial 13
responsibility, age, experience, reputation, competence, and general fitness 14
of the applicant to perform the activity permitted by a license are consistent 15
with the best interest of charitable gaming in the Commonwealth, and the 16
maintenance of honesty, integrity, and high quality thereof. 17
(4) A license may be issued for th e calendar year for which an applicant applies or, if 18
authorized by administrative regulation of the corporation, a license may be issued 19
that expires on the last day of the birth month of the licensee. A license may be 20
renewed by the corporation. The lice nse shall be valid at all horse race meetings in 21
the Commonwealth during the period for which it is issued unless suspended or 22
revoked under the administrative regulations promulgated by the corporation under 23
this chapter. The occupational license to parti cipate in sports wagering may be 24
suspended or revoked pursuant to administrative regulations promulgated by the 25
corporation under this chapter. With respect to horse owners and trainers, the 26
corporation may promulgate administrative regulations to facilita te and promote 27
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uniform, reciprocal licensing with other states. 1
Section 21. KRS 230.361 is amended to read as follows: 2
(1) (a) The corporation may promulgate administrative regulations governing and 3
regulating mutuel wag ering on horse races under what is known as the pari -4
mutuel system of wagering. 5
(b) The wagering shall be conducted only by a person licensed under this chapter 6
to conduct a race meeting and only upon the licensed premises, and provided 7
further that only p ari-mutuel wagering on simulcasting shall be allowed at 8
simulcast facilities. 9
(c) 1. The pari -mutuel system of wagering shall be operated only by a 10
totalizator or other mechanical equipment approved by the corporation. 11
The corporation shall not require any particular make of equipment. 12
2. At the earliest opportunity consistent with existing contractual 13
provisions, licensed totalizator companies, licensed race tracks, and 14
associations shall: 15
a. Accelerate the adoption of technologies to promote and aid in the 16
development of the operation of the wagering systems on live 17
horse racing; 18
b. Update the totalizator and other mechanical equipment, which 19
has been licensed by the corporation, to include commercially 20
reasonable access to the betting odds for retail bett ors by April 1, 21
2027; and 22
c. At a minimum, update technologies related to the pari -mutuel 23
system of wagering annually. 24
(2) The corporation may promulgate administrative regulations governing and 25
regulating sports wagering, including administrative regulati ons for the deposit of 26
funds by credit or debit cards or other means of electronic funds transfer. The 27
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corporation may promulgate administrative regulations to establish a fully 1
functioning sports wagering system within six (6) months after June 29, 2023. 2
(3) The operation of a pari -mutuel system for betting, or the conduct of sports 3
wagering, fantasy contests, or fixed -odds wagering, where authorized by law shall 4
not constitute grounds for the revocation or suspension of any license issued and 5
held under KRS 242.1238 and 243.265. 6
(4) Notwithstanding any law to the contrary: 7
(a) The corporation may promulgate administrative regulations governing all 8
reported but unclaimed pari -mutuel winning tickets and unredeemed pari -9
mutuel vouchers held in this state by a ny person or association operating a 10
pari-mutuel or similar system of betting authorized under this chapter; and 11
(b) The unclaimed pari -mutuel winning tickets and unredeemed pari -mutuel 12
vouchers shall be presumed abandoned if not claimed by the person entitled to 13
them within one (1) year from the time the ticket was issued. 14
(5) The corporation may issue a license to conduct pari -mutuel wagering on steeple 15
chases or other racing over jumps; if all proceeds from the wagering, after expenses 16
are deducted, is u sed for charitable purposes. If the dates requested for such a 17
license have been granted to a track within a forty (40) mile radius of the race site, 18
the corporation shall not issue a license until it has received written approval from 19
the affected track. Pari-mutuel wagering licensed and approved under this 20
subsection shall be limited to four (4) days per year. All racing and wagering 21
authorized by this subsection shall be conducted in accordance with applicable 22
administrative regulations promulgated by the corporation. 23
(6) (a) Licensed associations and tracks shall ensure all wagering is disabled 24
simultaneously with, but not later than, the moment the starting gate is 25
opened for commencement of a race. 26
(b) This subsection shall not prevent the pari-mutuel pools and odds from being 27
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updated after wagering is disabled to reflect all wagers that were placed up 1
to the moment wagering is disabled. 2
Section 22. KRS 230.805 is amended to read as follows: 3
(1) The corporation shall institute a system of sports wagering in conformance with 4
federal law, this chapter, and by administrative regulations promulgated under the 5
authority of KRS 230.215. 6
(2) Sports wagering shall not be offered in this state except as authorized by this 7
section and KRS 230.811. A track that holds a license to operate sports wagering 8
may contract with sports wagering service providers to conduct or manage sports 9
wagering operations as authorized by this chapter. Sports wagering may be 10
provided at a licensed fac ility for sports wagering or online through a website or 11
mobile application. The licensed facility for sports wagering or a sports wagering 12
service provider may provide sports wagering through a website or mobile interface 13
as approved by the corporation. T he corporation may provide temporary licenses to 14
licensed facilities for sports wagering or sports wagering service providers, if the 15
corporation deems that the information submitted by them is sufficient to determine 16
the applicant's suitability. The corpo ration may promulgate administrative 17
regulations to establish the suitability for temporary and ordinary license 18
applications for licensed facilities for sports wagering, sports wagering service 19
providers, and any related parties. 20
(3) Sports wagering licen sees and service providers that accept wagers online via 21
websites and mobile applications shall impose the following requirements: 22
(a) Prior to placing a wager online via websites or mobile applications operated 23
by either a sports wagering licensee or a se rvice provider, a patron shall 24
register the patron's sports wagering account with the operating sports 25
wagering licensee or service provider either in person at a licensed facility for 26
sports wagering or remotely through the service provider's website or m obile 27
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application; 1
(b) 1. The registration process shall include attestation that the patron meets 2
the requirements to place a wager with a sports wagering licensee or 3
service provider in this state. 4
2. Prior to verification of a patron's identity, a sport s wagering licensee or 5
service provider shall not allow the patron to engage in sports wagering, 6
make a deposit, or process a withdrawal via the patron's sports wagering 7
account. 8
3. A sports wagering licensee or service provider shall implement 9
commercially and technologically reasonable procedures to prevent 10
access to sports wagering by any person under the age of twenty-one 11
(21)[eighteen (18)]: 12
a. At a licensed facility; and 13
b. Online via website or mobile application. 14
4. A sports wagering licensee or ser vice provider may use information 15
obtained from third parties to verify that a person is authorized to open 16
an account, place wagers, and make deposits and withdrawals; 17
(c) A sports wagering licensee or service provider shall adopt an account 18
registration policy to ensure that all patrons are authorized to place a wager 19
with a sports wagering licensee or service provider within the Commonwealth 20
of Kentucky. This policy shall include, without limitation, a mechanism by 21
which to: 22
1. Verify the name and age of the patron; 23
2. Verify that the patron is not prohibited from placing a wager; and 24
3. Obtain the following information: 25
a. A physical address other than a post office box; 26
b. A phone number; 27
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c. A unique user name; and 1
d. An email[e-mail] account; 2
(d) A sports wagering licensee or service provider shall use all commercially and 3
technologically reasonable means to ensure that each patron is limited to one 4
(1) account with that service provider in the Commonwealth, but nothing in 5
this paragraph restricts a patron from holding other sports wagering accounts 6
in other jurisdictions; 7
(e) A sports wagering licensee or service provider, in addition to complying with 8
state and federal law pertaining to the protection of the private, personal 9
information of patron s, shall use all other commercially and technologically 10
reasonable means to protect this information consistent with industry 11
standards; 12
(f) A sports wagering licensee or service provider shall use all commercially and 13
technologically reasonable means to verify the identity of the patron making a 14
deposit or withdrawal; 15
(g) A sports wagering licensee or service provider shall utilize geolocation or 16
geofencing technology to ensure that wagers are only accepted from patrons 17
who are physically located in the Co mmonwealth. A sports wagering licensee 18
or service provider shall maintain in this state its servers used to transmit 19
information for purposes of accepting or paying out wagers on a sporting 20
event placed by patrons in this state; 21
(h) A patron may fund the patron's account using any acceptable form of payment 22
or advance deposit method, which shall include the use of cash, cash 23
equivalents, credit cards, debit cards, automated clearing house, other 24
electronic methods, and any other form of payment authorized b y the 25
corporation; and 26
(i) The corporation may enter into agreements with other jurisdictions or entities 27
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to facilitate, administer, and regulate multijurisdictional sports betting by 1
sports betting operators to the extent that entering into the agreement is 2
consistent with state and federal laws and the sports betting agreement is 3
conducted only in the United States. 4
(4) A track may contract with no more than three (3) service providers at a time to 5
conduct and manage services and technology which support the operation of sports 6
betting both on the track and online via websites and mobile applications. The 7
website or mobile application used to offer sports betting shall be offered only 8
under the same brand as the track or that of the service provider contra cted with the 9
track, or both. 10
(5) (a) A track or service provider through an agreement with a licensed track shall 11
not offer sports wagering until the corporation has issued a sports wagering 12
license to the track, except for temporary licenses authorized u nder KRS 13
230.814. 14
(b) A track or association, or service provider through an agreement with a 15
licensed track, shall not offer fixed -odds wagering until the corporation has 16
issued a supplemental fixed-odds wagering license to the track. 17
(6) (a) A track lice nsed under KRS 230.811 may offer sports wagering at a facility 18
that meets the definition of "track" in KRS 230.210. 19
(b) A simulcast facility may offer sports wagering through an agreement with a 20
track by using any of that track's already established service providers. 21
(7) (a) As used in this subsection, "minimum bet limit": 22
1. Means the amount a bettor can win, not how much can be staked or 23
collected; and 24
2. Includes that the minimum bet limit must be accepted by bookmakers 25
on all fixed-odds wagers. 26
(b) A track or association licensed under this chapter may conduct fixed -odds 27
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wagering on horse racing with or without a service provider. 1
(c) A track or association or service provider licensed under this chapter shall 2
have a mandatory minimum bet limit of at le ast one thousand dollars 3
($1,000) per race. 4
(d) The betting menu shall be determined by the host track. 5
(8) (a) As used in this subsection, "proposition bet" means a wager on the 6
performance statistics of an individual athlete. 7
(b) A sports wagering licens ee or service provider shall not offer or accept any 8
proposition bets on an individual performance statistic on athletes 9
participating in collegiate sporting events for a collegiate team located in 10
Kentucky if the successful outcome of the wager is conting ent upon the 11
athlete failing to meet a specified statistical threshold or experiencing a 12
negative performance outcome. 13
(9) (a) As used in this subsection: 14
1. "Affiliate" means an entity that is owned or controlled in whole or in 15
part by the licensee; and 16
2. "Beneficial interest" means participation in the proceeds of prediction 17
markets or events contracts either as a licensee or operator of the 18
proceeds or an entity that receives prediction market or events 19
contracts proceeds in any capacity. 20
(b) A track or association that holds a license to conduct horse racing, sports 21
wagering, or a licensee offering fantasy contests under this chapter or its 22
affiliate shall not participate in or contract with platforms that offer events 23
contracts through a prediction market in the Commonwealth of Kentucky or 24
have a beneficial interest in the proceeds of prediction markets in the 25
Commonwealth of Kentucky. 26
(c) A track or association licensed to conduct horse racing, sports wagering, or 27
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a licensee offering fantasy contests under this chapter or its affiliate or an 1
entity in which it has a beneficial interest shall not contract with a service 2
provider that: 3
1. Offers events contracts through a prediction market in the 4
Commonwealth of Kentucky; or 5
2. Owns, rents, licenses, advertises, operates, is partnered or affiliated 6
with, or has a beneficial interest in, an entity that makes available to 7
its users in any form a prediction market in the Commonwealth of 8
Kentucky. 9
(10) Notwithstanding subsection (9) of this section, this chapter shall not prohibit the 10
corporation or the Department of Revenue from promulgating administrative 11
regulations in accordance with KRS Chapte r 13A to regulate the conduct or 12
activity of prediction markets in the Commonwealth in accordance with 13
applicable federal law. 14
(11) If a track or association holds two (2) or more licenses, only the specific license 15
or licensee for which the track or assoc iation has violated the terms shall be 16
subject to suspension or revocation or the applicable penalties. 17
(12) This section shall not be construed to prevent a service provider or a track or 18
association licensed to conduct horse racing or sports wagering or a licensee 19
offering fantasy contests under this chapter from offering advanced deposit 20
account wagering as defined in Section 1 of this Act. 21
Section 23. KRS 238.505 is amended to read as follows: 22
As used in this chapter, unless the context requires otherwise: 23
(1) "Adjusted gross receipts" means gross receipts from the conduct of charitable 24
gaming less all cash prizes and the amount paid for merchandise prizes purchased; 25
(2) "Affiliate" means any corporation, partnership, association, or other business or 26
professional entity or any natural person that directly or indirectly, through one or 27
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more intermediaries, controls, or is controlled by, or is under common control with 1
a licensed manufacturer, distributor, or charitable gaming facility; 2
(3) "Bingo" means a specific game of chance in which participants use cards or paper 3
sheets, or card -minding device representations thereof, divided into horizontal and 4
vertical spaces, each of which is designated by a letter and a number, and prizes are 5
awarded on the basis of the letters and numbers on the card conforming to a 6
predetermined and preannounced configuration of letters and numbers selected at 7
random; 8
(4) "Board" means the board of directors of the Kentucky Horse Racing and Ga ming 9
Corporation; 10
(5) "Card-minding device" means any mechanical, electronic, electromechanical, or 11
computerized device that is interfaced with or connected to equipment used to 12
conduct a game of bingo and that allows a player to store, display, and mark a bingo 13
card face. A card -minding device shall not be designed and manufactured to 14
resemble any electronic gaming device that utilizes a video display monitor, such as 15
a video lottery terminal, video slot machine, video poker machine, or any similar 16
video gaming device; 17
(6) (a) "Chairperson" means: 18
1. The chief executive officer and any officer, member, or employee of a 19
licensed charitable organization; or 20
2. An employee of the premises upon which the charitable gaming is 21
conducted that is twenty-one (21) years of age or older, has completed 22
training prescribed by the office, and has completed the required 23
background checks; 24
who will be involved in the management and supervision of charitable gaming 25
as designated in the organization's charitable gaming license application under 26
KRS 238.535(13)(g). 27
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(b) Training prescribed by the office in paragraph (a) of this subsection and the 1
federal background check required in Section 26 of this Act shall not be in 2
effect until July 1, 2027; 3
(7) "Charitable gaming" means bingo, charity game tickets, raffles, and charity 4
fundraising events conducted for fundraising purposes by charitable organizations 5
licensed and regulated under the provisions of this chapter. "Charitable gaming" 6
shall not include slot machines, electronic video gaming devices, wagering on live 7
sporting events, or simulcast broadcasts of horse races; 8
(8) "Charitable gaming facility" means a person, including a licensed charitable 9
organization, that owns or is a lessee of premises w hich are leased or otherwise 10
made available to two (2) or more licensed charitable organizations, other than 11
itself, during a one (1) year period for the conduct of charitable gaming [the 12
premises on which charitable gaming is conducted]; 13
(9) "Charitable gaming supplies and equipment" means any material, device, apparatus, 14
or paraphernalia customarily used in the conduct of charitable gaming, including 15
bingo cards and paper, charity game tickets, and other apparatus or paraphernalia 16
used in conducting games of chance at charity fundraising events subject to 17
regulation under this chapter. The term shall not include any material, device, 18
apparatus, or paraphernalia incidental to the game, such as pencils, daubers, playing 19
cards, or other supplies that may be purchased from normal sources of supply; 20
(10) "Charitable organization" means a nonprofit entity organized for charitable, 21
religious, educational, literary, civic, fraternal, or patriotic purposes; 22
(11) "Charity fundraising event" means an activity of limited duration at which games of 23
chance approved by the corporation are conducted, including bingo, raffles, charity 24
game tickets, special limited charitable games, and wagering on prerecorded horse 25
races, KRS Chapter 230 notwithstanding. Examples of such acti vities include 26
events that attract patrons for community, social, and entertainment purposes apart 27
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from charitable gaming, such as fairs, festivals, carnivals, licensed charitable 1
gaming organization conventions, bazaars, and banquets. For the purposes of this 2
subsection, "banquet" shall mean a formal meal or feast held by a charitable 3
organization for community, social, or entertainment purposes apart from charitable 4
gaming; 5
(12) "Charity game ticket" means a game of chance using a folded or banded paper 6
ticket, or a paper card with perforated break -open tabs, or electronic pulltab device 7
representations thereof, the face of which is covered or otherwise hidden from view 8
to conceal a number, letter, symbol, or set of numbers, letters, or symbols, some of 9
which have been designated in advance as prize winners and shall include charity 10
game tickets that utilize a seal card. "Charity game ticket" shall include pulltabs, 11
both paper and electronic representations thereof; 12
(13) "Corporation" means the Kentucky Horse Racing and Gaming Corporation; 13
(14) "Distributor" means a person who sells, markets, leases, or otherwise furnishes to a 14
charitable organization charitable gaming equipment or supplies, or both, used in 15
the conduct of charitable gaming. "Distributor" shall not include: 16
(a) A resident printer who prints raffle tickets at the request of a licensed 17
charitable organization; and 18
(b) A licensed charitable organization that affects a one -time donation of 19
charitable gaming supplies or equipment to another licensed charitable 20
organization if the donation is first approved by the corporation; 21
(15) "Door prize" means a prize awarded to a person based solely upon the person's 22
attendance at an event or the purchase of a ticket to attend an event; 23
(16) "Electronic pulltab device" means an electronic device used only for charitable 24
gaming to facilitate the play of an electronic pulltab. An electronic pulltab device 25
shall be a tablet or other personal computing device, other than a mobile phone or 26
similar handheld device, as approved by the corporation. An ele ctronic pulltab 27
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device may only operate on a closed network or intranet that is confined to the 1
licensee's premises, and shall not be internet accessible by patrons, but shall be 2
connected to a central server system solely for the purposes of monitoring, 3
reporting, accounting, and software maintenance. An electronic pulltab device shall 4
not be designed and manufactured to resemble any electronic gaming device that 5
utilizes a video display monitor, such as a video lottery terminal, video slot 6
machine, video poker machine, or any similar video gaming device; 7
(17) "Electronic video gaming device," as used in this chapter and the related 8
administrative regulations, means any device that possesses a video display and 9
computer mechanism for playing a game. Electr onic video gaming device shall not 10
mean any electronic representation of charitable gaming games identified, defined, 11
and approved by statute and by administrative regulation of the corporation; 12
(18) "Gross receipts" means all moneys collected or received from the conduct of 13
charitable gaming; 14
(19) "Immediate family" means: 15
(a) Spouse and parents-in-law; 16
(b) Parents and grandparents; 17
(c) Children and their spouses; and 18
(d) Siblings and their spouses; 19
(20) "Manufacturer" means a person who assembles from raw materials or subparts any 20
charitable gaming equipment or supplies used in the conduct of charitable gaming, 21
including a person who converts, modifies, and adds to or removes parts from, 22
charitable gaming equipment and supplies. The term shall not include: 23
(a) Any person who services or repairs charitable gaming supplies and 24
equipment, so long as that person replaces or repairs an incidental, 25
malfunctioning, or nonfunctioning part with a similar or identical part; and 26
(b) Any distributor who cuts, collates, and packages for distribution any gaming 27
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supplies and equipment purchased in bulk; 1
(21) "Net receipts" means adjusted gross receipts from the conduct of charitable 2
gaming less all expenses, charges, fees, and deductions authorized under this 3
chapter; 4
(22) "Office" means the office regulating charitable gaming within the Kentucky Horse 5
Racing and Gaming Corporation established by the president under KRS Chapter 6
230; 7
(23) "President" means the president of the Kentucky Horse Racing and Gaming 8
Corporation; 9
(24) "Raffle" means a game of chance in which a participant is required to purchase a 10
ticket for a chance to win a prize, with the winner to be determined by a random 11
drawing; 12
(25) "Seal card" means a board or placard used in conjunction with charity game ti ckets, 13
that contains a seal or seals which, when removed or opened, reveal predesignated 14
winning numbers, letters, or symbols; 15
(26) "Session" or "bingo session" means a single gathering at which a bingo game or 16
series of successive bingo games are played, excluding bingo played at a charity 17
fundraising event; 18
(27) "Special limited charitable game" means roulette; blackjack; poker; keno; money 19
wheel; baccarat; pusher -type games; any dice game where the player competes 20
against the house; and any other game of chance as identified, defined, and 21
approved by administrative regulation of the corporation; 22
(28) "Special limited charity fundraising event" means any type of charity fundraising 23
event, commonly known as and operated as a "casino night," "Las Vegas night ," or 24
"Monte Carlo night," at which the predominant number or types of games offered 25
for play are special limited charitable games; and 26
(29) "Year" means calendar year except as used in KRS 238.535(11), 238.545(4), 27
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238.547(1), and 238.555(7), when "year" means the licensee's license year. 1
Section 24. KRS 238.510 is amended to read as follows: 2
(1) The Office of Charitable Gaming is created as an office within the Kentucky Horse 3
Racing and Gaming Corporation. Subject to the authority of the corporation, the 4
office shall license and regulate the conduct of charitable gaming and license and 5
regulate charitable organizations that desire to engage in charitable gaming, 6
charitable gaming facilities, manufacturers, and distributor s in the Commonwealth 7
of Kentucky in accordance with the provisions of this chapter. 8
(2) The president shall employ necessary staff to administer and enforce the provisions 9
of this chapter. 10
(3) No employee of the corporation during his or her term of emplo yment shall be an 11
officer in a charitable organization that is licensed to conduct charitable gaming or 12
be involved in the conduct of charitable gaming as a member of a licensed 13
charitable organization. No employee of the corporation during his or her term of 14
employment shall be licensed as a manufacturer, distributor, or charitable gaming 15
facility, or have a financial interest in any business that is licensed as a 16
manufacturer, distributor, or charitable gaming facility. 17
(4) The president may appoint investigators who may have the powers of peace officers 18
throughout the Commonwealth for the purposes of enforcing this chapter and any 19
law relating directly or indirectly to the conduct of horse racing, pari -mutuel 20
wagering, sports wagering, and charitable gaming, as well as the enforcement of 21
laws relating to the protection of persons or property on licensed premises. The 22
peace officer powers of investigators appointed under this subsection [; however, 23
those powers] shall be limited to: 24
(a) Enforcement of the provisions of KRS Chapters 230 and 238; 25
(b) Violations of KRS Chapter 528, relating to: 26
1. Unlicensed and illegal gaming; 27
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2. Gambling offenses committed on licensed premises; and 1
3. Gambling offenses committed in conjunction wi th a legal gaming 2
activity; 3
(c) Violations of KRS Chapter 514, relating to theft, embezzlement, or other 4
illegal diversions of legal gaming proceeds; 5
(d) Violations of KRS Chapters 516 and 517, relating to forgery and fraud in the 6
conduct of legal gaming; 7
(e) Violations relating to the damage or destruction of real or personal property 8
owned or leased by a licensee; and 9
(f) Violation of any criminal felony offense committed: 10
1. On licensed gaming premises; and 11
2. In the presence of an investigator. 12
(5) Horse racing and gaming investigators may satisfy the certification standards 13
established by the Department of Criminal Justice Training pursuant to KRS 14
Chapter 15, but this certification shall not be required for any investigators hired 15
after July 1, 2025. Horse racing and gaming investigators shall not qualify for 16
hazardous duty coverage under the Kentucky Employees Retirement System.[ 17
(6) Gaming investigators so appointed shall not possess peace officer powers other than 18
those provided in subsection (4) of this section.] 19
Section 25. KRS 238.515 is amended to read as follows: 20
Charitable gaming shall not be conducted in the Commonwealth except as authorized 21
by this chapter and KRS Chapter 230. The office shall license and reg ulate the conduct 22
of charitable gaming in the Commonwealth of Kentucky as authorized by the 23
corporation. The president may integrate office responsibilities into other corporation 24
offices to ensure efficiencies and eliminate duplication of duties. Office p owers and 25
duties include: 26
(1) Licensing charitable organizations, charitable gaming facilities, manufacturers, and 27
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distributors that desire to engage in charitable gaming; 1
(2) Refusing to issue or renew a license for cause, revoking or suspending a license , 2
imposing probationary conditions on a license, issuing a written reprimand or 3
admonishment or notice of violation, and imposing fines and penalties, or any 4
combination thereof with regard to a licensee or other person participating in 5
charitable gaming i n Kentucky for violation of any federal or state statute or 6
administrative regulation, or office directive, ruling, or order to preserve the 7
integrity of charitable gaming in Kentucky or to protect the public from direct 8
harm; 9
(3) Establishing and enforcin g reasonable standards for the conduct and operation of 10
charitable gaming activity and the operation of charitable gaming facilities; 11
(4)[(3)] Prescribing reasonable fees for licenses that do not exceed amounts 12
established in this chapter; 13
(5)[(4)] Establishing standards of accounting, recordkeeping, and reporting to insure 14
charitable gaming receipts are properly accounted for; 15
(6)[(5)] Establishing a process for reviewing complaints and allegations of 16
wrongdoing, and for investigating complaints with merit . In furtherance of this 17
duty, the office may issue administrative subpoenas and summonses. The office 18
shall also establish toll-free telephone service or an electronic method for receiving 19
complaints and inquiries; 20
(7) Investigating, auditing, and other r easonable actions to ensure compliance with 21
this chapter; 22
(8)[(6)] Taking appropriate disciplinary action, subject to the final order of the 23
corporation, and making referrals for criminal prosecution of persons who do not 24
operate in compliance with this chapter; 25
(9)[(7)] Collecting and depositing all fees and fines in the charitable gaming 26
regulatory account to be administered by the corporation; and 27
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(10)[(8)] Proposing administrative regulations in accordance with KRS Chapter 13A 1
which are necessary to car ry out the purposes and intent of this chapter. In 2
proposing administrative regulations under this subsection, the office shall submit 3
any proposed regulations to the Kentucky Horse Racing and Gaming Corporation. 4
Section 26. KRS 238.525 is amended to read as follows: 5
(1) Licenses shall be issued by the office on an annual basis, except as otherwise 6
permitted in KRS 238.530 and 238.545. A license term may be determined by the 7
office in any manner it deems appropriate to facilitate efficient licensing. The office 8
shall charge a licensing and renewal fee not to exceed the maximum amounts 9
established in KRS 238.530, 238.535, and 238.555. 10
(2) The office may issue a temporary license to an applicant who has met the 11
requirements for a license. A temporary license shall be valid from the date of 12
issuance until the regular license is issued or for a period of sixty (60) days, 13
whichever is shorter. A temporary license shall not be renewed, except for good 14
cause and shall not exceed a total of nine (9) months in length. 15
(3) An applicant for any license to be issued under KRS 238.530 and 238.555 and 16
Section 28 of this Act shall be subjected to a state and national criminal history 17
background check by the office, with th e assistance of the Department of Kentucky 18
State Police and the Federal Bureau of Investigation. An applicant for any license to 19
be issued under KRS 238.535 shall be subjected to a state criminal history 20
background check and may, if deemed reasonably neces sary, be subjected to a 21
national criminal history background check by the office with the assistance of the 22
Department of Kentucky State Police and the Federal Bureau of Investigation. 23
(4) The criminal history background check shall apply to: 24
(a) The chief executive officer and the chief financial officer or director of an 25
applicant; 26
(b) Any employee or member of an applicant who has been designated as 27
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chairperson of the charitable gaming activity; 1
(c) The applicant itself;[ and] 2
(d) Any individual with a t en percent (10%) or more financial interest in the 3
applicant; and 4
(e) Any other person associated with the applicant the corporation determines 5
necessary to ensure the general fitness of the applicant to perform the 6
activity permitted by the license. 7
(5) (a) The office shall require the fingerprinting of all applicants for licensure under 8
KRS 238.530 and 238.555 and may require, if deemed reasonably necessary, 9
the fingerprints of all applicants for licensure under KRS 238.535, who are 10
natural persons in con nection with the national criminal history background 11
check to assure the identity of the applicant or applicants. 12
(b) The office may charge a reasonable fee not to exceed the actual cost of 13
fingerprinting and records searching. 14
(6)[(4)] No applicant shall be licensed and no license holder shall be able to maintain 15
a license if an individual associated with the applicant or license holder in a 16
capacity listed in subsection (4)[(3)] of this section , or an individual required by 17
the corporation to undergo a b ackground check pursuant to subsections (3) and 18
(4) of this section, or the applicant or license holder itself has been convicted of a 19
felony, gambling offense, criminal fraud, forgery, theft, falsifying business records, 20
violation of KRS 238.995(7), any crime where dishonesty is a necessary element, 21
any crime of moral turpitude, or any two (2) misdemeanor crimes in federal court 22
or the courts of any state, the District of Columbia, or any territory, consistent with 23
the provisions of KRS Chapter 335B within ten (10) years preceding the application 24
for licensure. 25
(7)[(5)] No applicant shall be licensed unless all applicants required to be 26
fingerprinted under subsections[the provision of subsection] (3) and (4) of this 27
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section have been fingerprinted. The Depa rtment of Kentucky State Police may 1
submit fingerprints of any applicant to the Federal Bureau of Investigation for the 2
national criminal history background check. The corporation may by administrative 3
regulation impose additional qualifications to meet th e requirements of Pub. L. No. 4
92-544. 5
(8)[(6)] If a change occurs in any information submitted during the license application 6
process, the applicant or licensee shall notify the office in writing within thirty (30) 7
days of the date the change occurred. 8
Section 27. KRS 238.530 is amended to read as follows: 9
(1) A[No] person shall not sell, offer to sell, rent, lease, or otherwise furnish charitable 10
gaming supplies or equipment unless the person is licensed by the office as a 11
distributor. The office shall charge a license fee not to exceed five thousand dollars 12
($5,000)[one thousand dollars ($1,000)]. 13
(2) A[No] person shall not sell, offer to sell, rent, lease, or otherwise furnish charitable 14
gaming supplies and equipment unless the person is licensed by the office as a 15
manufacturer. The office shall charge a license fee not to exceed five thousand 16
dollars ($5,000)[one thousand dollars ($1,000)]. 17
(3) A[No] person who is licensed as a charitable organization, and an[no] owner, 18
officer, employee, or member of the immediate family of an owner, officer, or 19
employee of a licensed charitable gaming facility shall not be eligible for li censure 20
as a distributor or manufacturer. An[No] affiliate of an owner, officer, or employee, 21
or member of the immediate family of an owner, officer, or employee of a licensed 22
charitable gaming facility shall not be licensed as a distributor or manufacture r. 23
A[No] person who is a licensed wholesaler or distributor of alcoholic beverages 24
shall not be licensed as a distributor or manufacturer. A[No] person who is licensed 25
as a distributor shall not be licensed as a manufacturer, and a[no] person licensed as 26
a manufacturer shall not be licensed as a distributor. 27
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(4) An applicant for a license as a manufacturer or distributor shall apply for license on 1
forms provided by the office and shall submit as part of the application process the 2
following: 3
(a) The full na me, address, date of birth, and Social Security number of the 4
applicant; 5
(b) If the applicant is a corporation or other business entity, the names, addresses, 6
dates of birth, and Social Security numbers of all officers and management 7
personnel; 8
(c) The nam e, address, date of birth, and Social Security number of any 9
individual who has ten percent (10%) or more financial interest in the 10
applicant organization; 11
(d) Federal employer tax number; 12
(e) A sworn statement by the applicant or the appropriate officer t hat all 13
information provided is true and correct and that the applicant agrees to 14
comply with the applicable provisions of this chapter and all applicable 15
administrative regulations promulgated thereunder; 16
(f) The name, address, and telephone number of a r egistered agent within the 17
Commonwealth of Kentucky, if the applicant is not a resident; and 18
(g) Any other information the office deems appropriate. 19
(5) Each licensed manufacturer and distributor shall maintain a complete set of records 20
as may be required by the office to document all activities related to the sale, rental, 21
lease, or furnishing of charitable gaming supplies and equipment in the 22
Commonwealth of Kentucky. These records shall be available for inspection by the 23
office at reasonable times, and all records shall be maintained for a minimum of 24
three (3) years. The office may require a licensed manufacturer and distributor to 25
report on its activity , with the content and frequency of these reports to be 26
prescribed by administrative regulation promulgated by the corporation. 27
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(6) A distributor who does not receive payment in accordance with the terms of its 1
sales or lease agreement from a licensed char itable organization within thirty (30) 2
days of the delivery of charitable gaming supplies and equipment shall notify the 3
office of the delinquency in writing in a form and manner prescribed by the office. 4
A manufacturer who does not receive payment in full from a distributor within sixty 5
(60) days of the delivery of charitable gaming supplies and equipment shall notify 6
the office of the delinquency in writing in a form and manner prescribed by the 7
office. 8
(7) A licensed manufacturer shall not sell charitabl e gaming supplies and equipment to 9
any person not licensed as a distributor in the Commonwealth of Kentucky. 10
(8) A licensed distributor shall not sell charitable gaming supplies and equipment to 11
any person not licensed as a distributor or a charitable orga nization in the 12
Commonwealth of Kentucky, unless the organization is exempted from licensure 13
under the provisions of this chapter. 14
(9) A licensed distributor shall not purchase charitable gaming supplies and equipment 15
from any person not licensed as a manufacturer or distributor in the Commonwealth 16
of Kentucky. 17
(10) An[No] officer, owner, employee, or contractee of a licensed distributor or licensed 18
manufacturer or their affiliates and a[no] member of the immediate family of an 19
owner, officer, employee, or contractee of a licensed distributor or licensed 20
manufacturer or their affiliates, shall not, with respect to a licensed charitable 21
organization: 22
(a) Manage or otherwise be involved in the conduct of charitable gaming; 23
(b) Provide bookkeeping or other acco unting services related to the conduct of 24
charitable gaming; 25
(c) Handle any moneys generated in the conduct of charitable gaming; 26
(d) Advise a licensed charitable organization on the expenditure of net receipts; 27
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(e) Provide transportation services in any m anner to patrons of a charitable 1
gaming activity; 2
(f) Provide advertisement or marketing services in any manner to a licensed 3
charitable organization; 4
(g) Provide, coordinate, or solicit the services of personnel or volunteers in any 5
manner; 6
(h) Provide training or consulting on the conduct of charitable gaming, except in 7
connection with the use of its own equipment or supplies; 8
(i) Store its charitable gaming equipment or supplies in or on the premises of a 9
licensed charitable gaming facility; or 10
(j) Donate or give any prize to be awarded in the conduct of charitable gaming. 11
Section 28. KRS 238.535 is amended to read as follows: 12
(1) Any charitable organization conducting charitable gaming in the Commonwealth of 13
Kentucky shall be licensed by the corporation. A charitable organization qualifying 14
under subsection (12) of this section but not exceeding the limitations provided in 15
this subsection shall be exempt from the licensure requirements when conducting 16
the following charitable gaming activities: 17
(a) Bingo in which the gross receipts do not exceed a total of twenty -five 18
thousand dollars ($25,000) per year; 19
(b) A raffle or raffles for which the gross receipts do not exceed twenty -five 20
thousand dollars ($25,000) per year; and 21
(c) A charity fundraising event or events that do not involve special limited 22
charitable games and the gross gaming receipts for which do not exceed 23
twenty-five thousand dollars ($25,000) per year. 24
However, at no time shall a charitable organization's t otal limitations under this 25
subsection exceed twenty-five thousand dollars ($25,000). 26
(2) (a) Any charitable organization exempt from the process of applying for a license 27
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under subsection (1) of this section, shall notify the office in writing, on a 1
simple form issued by the office, of its intent to engage in exempt charitable 2
gaming and the address at which the gaming is to occur. Any charitable 3
organization exempt from the process of applying for a license under 4
subsection (1) of this section consents to the jurisdiction of the corporation 5
and[,] shall comply with all other provisions of this chapter relating to the 6
conduct of charitable gaming, except: 7
1. Payment of the fee imposed under the provisions of KRS 238.570; and 8
2. The quarterly reporting requirements imposed under the provisions of 9
KRS 238.550(7), unless the exempt charitable organization obtains a 10
retroactive license pursuant to subsection (9) of this section. 11
(b) Before January 31 of the year immediately following the year of exemption, a 12
charitable organization exempt from licensure under the provisions of 13
subsection (1) of this section shall file a financial report with the office, on a 14
form issued by the office, that contains the following information: 15
1. The type of gaming activity in which it engaged during that year; 16
2. The total gross receipts derived from gaming; 17
3. The amount of charitable gaming expenses paid; 18
4. The amount of net receipts derived; and 19
5. The disposition of those net receipts. 20
(3) An exemption that has been granted to a charitable organization for the preceding 21
calendar year shall be automatically renewed on January 1 of the following year. 22
(4) If upon receipt of the financial report the office determines that the information 23
appearing on t he financial report renders the charitable organization ineligible to 24
possess an exemption, the office shall notify the charitable organization that its 25
exemption is rescinded. The organization may request an appeal of this rescission 26
pursuant to KRS 238.565. 27
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(5) If the annual financial report is not received by January 31, the exemption is 1
automatically rescinded unless an extension of no more than thirty (30) days is 2
granted by the office. The organization may request an appeal of this rescission 3
pursuant to KRS 238.565. 4
(6) If an exemption is revoked because an organization has exceeded the limit imposed 5
in subsection (1) of this section, the organization shall apply for a retroactive 6
license in accordance with subsection (7) of this section. 7
(7) If an or ganization exceeds the limit imposed by any subsection of this section it 8
shall: 9
(a) Report the amount to the office; and 10
(b) Apply for a retroactive charitable gaming license. 11
(8) Upon receipt of a report and application for a retroactive charitable gamin g license, 12
the office shall investigate to determine if the organization is otherwise qualified to 13
hold the license. 14
(9) If the office determines that the applicant is qualified, it shall issue a charitable 15
gaming license retroactive to the date on which t he exemption limit was exceeded. 16
The retroactive charitable gaming license shall be issued in the same manner as 17
regular charitable gaming licenses. 18
(10) If the office determines that the applicant is not qualified it shall deny the license 19
and take enforcement action, if appropriate. 20
(11) Once a retroactive or regular gaming license is issued to an organization, that 21
organization shall not be eligible for exempt status in the future and shall maintain a 22
charitable gaming license if it intends to continue c haritable gaming activities, 23
unless the charitable organization has not exceeded the exemption limitations of 24
subsection (1) of this section for a period of two (2) years prior to its exemption 25
request. 26
(12) (a) In order to qualify for licensure, a charitable organization shall: 27
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1. a. Possess a tax exempt status under 26 U.S.C. secs. 501(c)(3), 1
501(c)(4), 501(c)(8), 501(c)(10), or 501(c)(19), or be covered 2
under a group ruling issued by the Internal Revenue Service under 3
authority of those sections; or 4
b. Be organized within the Commonwealth of Kentucky as a local 5
school district, as a common school as defined in KRS 158.030, as 6
an institution of higher education as defined in KRS 164A.305, or 7
as a state college or university as provided for in KRS 164.290. A 8
common school, a program or organization affiliated with a 9
common school, or any combination of common schools and 10
programs affiliated with common schools located within a local 11
school district may conduct charitable gaming under the local 12
school district's charitable gaming license; 13
2. Have been established and continuously operating within the 14
Commonwealth of Kentucky for charitable purposes, other than the 15
conduct of charitable gaming, for a period of three (3) years prior to 16
application for licensure. For purposes of this paragraph, an applicant 17
shall demonstrate establishment and continuous operation in Kentucky 18
by its conduct of charitable activities from an office physically located 19
within Kentucky both during the three (3) years immediately precedi ng 20
its application for licensure and at all times during which it possesses a 21
charitable gaming license. However, a charitable organization that 22
operates for charitable purposes in more than ten (10) states and whose 23
principal place of business is physical ly located in a state other than 24
Kentucky may satisfy the requirements of this paragraph if it can 25
document that it has: 26
a. Been actively engaged in charitable activities and has made 27
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reasonable progress, as defined in subparagraph 3. of this 1
paragraph, in the conduct of charitable activities or the expenditure 2
of funds within Kentucky for a period of three (3) years prior to 3
application for licensure; and 4
b. Operated for charitable purposes from an office or place of 5
business in the Kentucky county where i t proposes to conduct 6
charitable gaming for at least one (1) year prior to application for 7
licensure, in accordance with subparagraph 4. of this paragraph 8
and paragraph (c) of this subsection; 9
3. Have been actively engaged in charitable activities during the three (3) 10
years immediately prior to application for licensure and be able to 11
demonstrate, to the satisfaction of the office, reasonable progress in 12
accomplishing its charitable purposes during this period. As used in this 13
paragraph, "reasonable progress in accomplishing its charitable 14
purposes" means the regular and uninterrupted conduct of activities 15
within the Commonwealth or the expenditure of funds within the 16
Commonwealth to accomplish reli ef of poverty, advancement of 17
education, protection of health, relief from disease, relief from suffering 18
or distress, protection of the environment, conservation of wildlife, 19
advancement of civic, governmental, or municipal purposes, or 20
advancement of those purposes delineated in KRS 238.505(10). In order 21
to demonstrate reasonable progress in accomplishing its charitable 22
purposes when applying to renew an existing license, a licensed 23
charitable organization shall additionally provide to the office a detail ed 24
accounting regarding its expenditure of charitable gaming net receipts 25
for the purposes described in this paragraph;[ and] 26
4. Have maintained an office or place of business, other than for the 27
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conduct of charitable gaming, for at least one (1) year in t he county in 1
which charitable gaming is to be conducted. The office or place of 2
business shall be a separate and distinct address and location from that 3
of any other licensee of the Office of Charitable Gaming; except that up 4
to three (3) licensed charitable organizations may have the same address 5
if they legitimately share office space; and 6
5. Comply with administrative regulations imposed by the corporation in 7
accordance with KRS Chapter 13A. 8
(b) 1. A charitable organization that has established and maint ained an office 9
or place of business in the county for a period of at least one (1) year 10
may hold a raffle drawing or a charity fundraising event, including 11
special limited charity fundraising events, in a Kentucky county other 12
than that in which the organ ization's office or place of business is 13
located. 14
2. For raffles, the organization shall notify the Office of Charitable 15
Gaming in writing of the organization's intent to change the drawing's 16
location at least thirty (30) days before the drawing takes plac e. This 17
written notification: 18
a. May be transmitted in any commercially reasonable means, 19
authorized by the office, including facsimile and electronic mail; 20
and 21
b. Shall set out the place and the county in which the drawing will 22
take place. 23
Approval by the office shall be received prior to the conduct of the raffle 24
drawing at the new location. 25
(c) Any charitable organization that was registered with the county clerk to 26
conduct charitable gaming in a county on or before March 31, 1992, shall 27
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satisfy the req uirement contained in paragraph (a)4. of this subsection if it 1
maintained a place of business or operation, other than for the conduct of 2
charitable gaming, for one (1) year prior to application in a Kentucky county 3
adjoining the county in which they were registered. 4
(13) In applying for a license, the information to be submitted shall include but not be 5
limited to the following: 6
(a) The name and address of the charitable organization; 7
(b) The date of the charitable organization's establishment in the Commo nwealth 8
of Kentucky and the date of establishment in the county or counties in which 9
charitable gaming is to be conducted; 10
(c) A statement of the charitable purpose or purposes for which the organization 11
was organized. If the charitable organization is inc orporated, a copy of the 12
articles of incorporation shall satisfy this requirement; 13
(d) A statement explaining the organizational structure and management of the 14
organization. For incorporated entities, a copy of the organizations' bylaws 15
shall satisfy this requirement; 16
(e) A detailed accounting of the charitable activities in which the charitable 17
organization has been engaged for the three (3) years preceding application 18
for licensure; 19
(f) The names, addresses, dates of birth, and Social Security numbers of all 20
officers of the organization; 21
(g) The names, addresses, dates of birth, employment information if applicable, 22
and Social Security numbers of all employees and members of the charitable 23
organization who will be involved in the management and supervisio n of 24
charitable gaming. No fewer than two (2) employees or members of the 25
charitable organization who are involved in the management and supervision 26
of charitable gaming, along with the chief executive officer or the director of 27
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the applicant organization, shall be designated as chairpersons; 1
(h) The address of the location at which charitable gaming will be conducted and 2
the name and address of the owner of the property, if it is owned by a person 3
other than the charitable organization; 4
(i) A copy of the l etter or other legal document issued by the Internal Revenue 5
Service to grant tax-exempt status; 6
(j) A statement signed by the presiding or other responsible officer of the 7
charitable organization attesting that the information submitted in the 8
application is true and correct and that the organization agrees to comply with 9
all applicable laws and administrative regulations regarding charitable 10
gaming; 11
(k) An agreement that the charitable organization's records may be released by 12
the Federal Internal Revenue Service to the office; and 13
(l) Any other information the office deems appropriate. 14
(14) (a) An organization or a group of individuals that does not meet the licensing 15
requirements of subsection (12) of this section may hold a raffle if: 16
1. The gross receipts do not exceed five hundred dollars ($500); 17
2. All proceeds from the raffle are distributed to a charitable organization; 18
and 19
3. The organization or group of individuals holds no more than three (3) 20
raffles each year; 21
and shall be exempt from complying with the notification, application, and 22
reporting requirements of subsections (2) and (13) of this section. 23
(b) An organization or a group of individuals that does not meet the licensing 24
requirements of subsection (12) of this section may hold a raffle if: 25
1. The organization holds a special event raffle license issued by the office 26
and complies with the regulatory requirements in thi s chapter, including 27
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but not limited to the quarterly reporting requirements of KRS 1
238.550(7), the retention requirements of KRS 238.536, and payment of 2
the fee imposed by KRS 238.570; 3
2. The organization possesses a tax -exempt status under 26 U.S.C. sec . 4
501(c)(7); 5
3. The organization holds no more than twelve (12) raffles per year; 6
4. Each raffle complies with the office's raffle standards in KRS 238.545 7
and administrative regulations promulgated thereunder and is approved 8
by the office in writing prior to the sale of the first raffle ticket; 9
5. The gross receipts of each raffle do not exceed five hundred thousand 10
dollars ($500,000); and 11
6. One hundred percent (100%) of the net receipts of each raffle shall be 12
distributed to a charitable organization licensed by the office pursuant to 13
subsection (12) of this section to conduct charitable gaming as follows: 14
a. All distributed net receipts shall be maintained by the recipient 15
licensed charitable organization in a separate account to be 16
designated as the "raffle recipient account"; 17
b. All distributed net receipts shall be expended by the recipient 18
licensed charitable organization to further the charitable purpose of 19
the recipient licensed charitable organization as required by KRS 20
238.550(4); and 21
c. All distr ibuted net receipts, and the expenditure thereof, shall be 22
reported to the office and be subject to the office's auditing and 23
investigative authority consistent with the provisions of this 24
chapter. 25
(c) An applicant qualifying under paragraph (b) of this su bsection shall submit an 26
application for a special event raffle license, and the information to be 27
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submitted shall include but not be limited to the following: 1
1. The name and address of the organization; 2
2. The date of the organization's establishment in the Commonwealth of 3
Kentucky and the date of the organization's establishment in the county 4
or counties in which charitable gaming is to be conducted; 5
3. A statement of the purpose or purposes for which the organization was 6
organized and identification of the licensed charitable organization to 7
which the applicant will distribute its net receipts. If the organization is 8
incorporated, a copy of the articles of incorporation shall satisfy this 9
requirement; 10
4. A statement explaining the organizational structur e and management of 11
the organization. For incorporated entities, a copy of the organization's 12
bylaws shall satisfy this requirement; 13
5. The names, addresses, dates of birth, and Social Security numbers of all 14
officers of the organization; 15
6. The names, addresses, dates of birth, and Social Security numbers of all 16
employees and members of the organization who will be involved in the 17
management and supervision of charitable gaming. No fewer than two 18
(2) employees or members of the organization who are involve d in the 19
management and supervision of charitable gaming, along with the chief 20
executive officer or the director of the applicant organization, shall be 21
designated as chairpersons; 22
7. The address of the location at which charitable gaming will be 23
conducted and the name and address of the owner of the property, if it is 24
owned by a person other than the organization; 25
8. A copy of the letter or other legal document issued by the Internal 26
Revenue Service to grant tax-exempt status; 27
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9. A statement signed by the presiding or other responsible officer of the 1
organization attesting that the information submitted in the application is 2
true and correct and that the organization agrees to comply with all 3
applicable laws and administrative regulations regarding charitab le 4
gaming; 5
10. An agreement that the organization's records may be released by the 6
federal Internal Revenue Service to the office; and 7
11. Any other information as determined by the corporation through the 8
promulgation of administrative regulations. 9
(15) The office may issue a license for a specified period of time, based on the type of 10
charitable gaming involved and the desired duration of the activity. 11
(16) The office shall charge a fee for each license issued and renewed, not to exceed one 12
thousand dollars ($1,000) [three hundred dollars ($300)] . Specific fees to be 13
charged may be prescribed in a graduated scale promulgated by administrative 14
regulations of the corporation and based on type of license, type of charitable 15
gaming, actual or projected gross receipts, or other applicable factors, or 16
combination of factors. 17
(17) (a) A licensed charitable organization may place its charitable gaming license in 18
escrow if: 19
1. The licensee notifies the office in writing that it desires to place its 20
license in escrow; and 21
2. The license is in good standing a nd the office has not initiated 22
disciplinary action against the licensee. 23
(b) During the escrow period, the licensee shall not engage in charitable gaming, 24
and the escrow period shall not be included in calculating the licensee's 25
retention rate under KRS 238.536. 26
(c) A charitable organization may apply for reinstatement of its active license and 27
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the license may[shall] be reinstated provided: 1
1. The charitable organization continues to qualify for licensure; 2
2. The charitable organization has not engaged in charitable gaming during 3
the escrow period; and 4
3. The charitable organization pays a reinstatement fee established by the 5
office. 6
(18) (a) At least sixty (60) days prior to the expiration of its existing license or its 7
first expected date of gaming, facil ity operation, or business operations in 8
Kentucky during the license period, an applicant shall submit a complete, 9
accurate, and documented application. The office shall review the 10
application and notify the applicant in writing of any deficiencies in the 11
application within thirty (30) days. An application shall not be considered 12
complete until all deficiencies are resolved. 13
(b) If the applicant does not file a written response to a deficiency request, 14
provide requested information and documents, or otherwi se cure the 15
identified deficiency within thirty (30) days of the written notice, the 16
application shall be deemed withdrawn. 17
(c) If the applicant files a written response to a deficiency request within thirty 18
(30) days of the written notice, but the respons e does not cure the identified 19
deficiency, the office shall issue a subsequent deficiency notice within thirty 20
(30) days. If the deficiency is incapable of being cured, the office shall deny 21
the license. 22
(d) Once the office has received a complete applicat ion, it shall grant or deny 23
the license within sixty (60) days of receipt. The office may issue a 24
temporary license to an applicant that has submitted a complete and 25
accurate license application form, and has complied with all other licensing 26
requirements in this section, until the office makes a final decision to grant 27
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or deny the annual license. 1
SECTION 29. KRS 238.538 IS REPEALED AND REENACTED TO READ 2
AS FOLLOWS: 3
(1) (a) A licensed charitable organization shall only of fer the play of electronic 4
charity game tickets and electronic pulltab devices at one (1) of the 5
following locations as approved and authorized by the corporation: 6
1. The office location of the charitable organization; 7
2. The location where the charitable organization is licensed to conduct 8
bingo; or 9
3. The location where charity fundraising events as defined in this 10
chapter are authorized; 11
(b) In addition to one (1) of the locations in paragraph (a) of this subsection, a 12
licensed charitable organization ma y have one (1) additional location that 13
offers the play of electronic charity game tickets and electronic pulltab 14
devices in either the same county or a county that is contiguous to the 15
charitable organization’s office location. 16
(2) (a) 1. Within ninety (90) days after the effective date of this Act, a charitable 17
gaming facility licensed prior to the effective date of this Act shall 18
initiate transfer of its charitable gaming facility license. 19
2. The charitable gaming facility licensed prior to the effective date of 20
this Act shall first transfer its license to one (1) of the licensed 21
charitable organizations it was affiliated with as of January 1, 2026, 22
and which transfer is not inconsistent with the applicable provision of 23
KRS Chapter 238, and next to any licensed charitable organization. 24
3. The charitable gaming facility licensed prior to the effective date of 25
this Act shall transfer its license by submitting to the corporation, in 26
order, information for the first licensed charitable organization as 27
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required in subparagraph 2. of this paragraph and the next choice of 1
licensed charitable organization if the first declines the transfer or is 2
not approved by the corporation to receive the transfer. 3
(b) The licensed charitable organization shall: 4
1. Be notified by the corporation of the charitable gaming facility's intent 5
to transfer; and 6
2. Apply with the corporation to receive the license by transfer under 7
paragraph (a) of this subsection. 8
(c) The corporation shall: 9
1. Not unreasonably withhold its approval of the licensed charitable 10
organization seeking approval under paragraph (b) of this subsection; 11
and 12
2. Accept or deny the transfer within ninety (90) days of receiving the 13
application. 14
(3) A charitable gaming facilit y may transfer no more than three (3) licenses under 15
this section from locations where persons twenty -one (21) years of age and under 16
are permitted to locations where only persons twenty -one (21) years of age and 17
older are permitted, within ninety (90) days of the effective date of this Act. 18
(4) (a) Notwithstanding subsection (1) of this section, a licensed charitable 19
organization offering the play of electronic charity game tickets or 20
electronic pulltab devices at more than one (1) additional location as 21
provided in subsection (1) of this section on July 1, 2025, may continue to 22
offer those activities at an additional location. Authorization to offer the 23
play of electronic charity game tickets and electronic pulltab devices at an 24
additional location shall b e lost and forfeited, and those activities ceased at 25
an additional location, upon occurrence of any of the following: 26
1. Change of ownership or transfer of the charitable organization, or the 27
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charitable organization’s permanent cessation of charitable gaming; 1
2. Failure to maintain a valid lease due to expiration and termination of 2
lease agreements; 3
3. Failure by the licensee to comply with all charitable gaming 4
requirements; 5
4. Failure or inability of the existing facility or location to restrict access 6
to persons twenty-one (21) years of age or older; 7
5. Failure to timely report changes to the additional location or to update 8
the information submitted to the corporation as part of the licensing 9
process; or 10
6. Failure to provide information as requested or ordered by the 11
corporation, related to the conduct of charitable gaming at the 12
additional location. 13
(b) 1. A licensed charitable organization shall not be required to cease 14
activities and may move to a new location that is restricted to ages 15
twenty-one (21) and older, if any of the following occurs: 16
a. A sale or transfer of ownership of any part of the property where 17
the additional location is located; 18
b. A sale or transfer of ownership of the business where the 19
additional location is located; or 20
c. Any closure of the location for ninety (90) days or more, which 21
shall include any closures due to an act of God. 22
2. A licensed charitable organization shall not be required to cease 23
activities and may rebuild at the same location if there is a closure due 24
to an act of God. 25
(5) Notwithstanding subsection (1) of this section, a licensed charitable organization 26
that offers the play of electronic charity game tickets or electronic pulltab devices 27
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at more than one (1) additional location as provided in subsection (1) o f this 1
section on July 1, 2025, shall lose, forfeit, and cease those activities at all 2
additional locations upon occurrence of any of the following: 3
(a) Suspension or revocation of a license due to a violation; 4
(b) Failure by the licensee to timely reapply for licensure or pay all required 5
licensure fees; or 6
(c) Engagement in activities that would pose a threat to the public interest or 7
the effective regulation of charitable gaming in Kentucky, or enhance the 8
dangers of unsuitable, unfair, or illegal practi ces, methods, and activities in 9
the conduct of charitable gaming or in the operation of the business and 10
financial arrangements incidental thereto. 11
(6) (a) Beginning April 15, 2026, until April 15, 2027, the Kentucky Horse Racing 12
and Gaming Corporation sha ll not authorize locations for the play of 13
electronic charity game tickets beyond the office location of the charitable 14
organization, the location where the charitable organization is licensed to 15
conduct bingo, and the location where pre -approved charitable fundraising 16
events are authorized. 17
(b) Paragraph (a) of this subsection shall not: 18
1. Prevent electronic charity game ticket activities and electronic charity 19
game ticket locations operating prior to April 15, 2026, from being 20
resupplied or updated; or 21
2. Apply if the corporation promulgates administrative regulations in 22
accordance with KRS Chapter 13A that regulate electronic charity 23
game tickets. 24
Section 30. KRS 238.540 is amended to read as follows: 25
(1) Charitable gaming shall be conducted by a licensed charitable organization at the 26
location, date, and time which shall be stated on the license. The licensee shall 27
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request a change in the date, time, or location of a charitable gaming event by mail, 1
electronic mail, or f acsimile transmission, and shall submit a lease and an original 2
signature of an officer. The office shall process this request and issue or deny a 3
license within ten (10) days. 4
(2) All premises or facilities on which or in which charitable gaming is conduc ted shall 5
meet all applicable federal, state, and local code requirements relating to life, safety, 6
and health. 7
(3) A license to conduct charitable gaming shall be prominently displayed on or in the 8
premises where charitable gaming is conducted, in a consp icuous location that is 9
readily accessible to gaming patrons as well as employees of the office, law 10
enforcement officials, and other interested officials. 11
(4) At least one (1) chairperson who is listed on the application for licensure shall be at 12
each charitable gaming activity conducted by the charitable organization and shall 13
be responsible for the administration and conduct of the charitable gaming activity. 14
A person shall not serve as chairperson for more than one (1) charitable 15
organization. The chair person shall be readily identifiable as the chairperson and 16
shall be present on the premises continuously during the charitable gaming activity. 17
Charitable gaming shall be conducted and administered solely by officers, 18
members, and bona fide employees of t he licensed charitable organization. 19
Volunteer personnel, who may or may not be members of the licensed charitable 20
organization, may be utilized if each volunteer is readily identifiable as a volunteer. 21
A person may serve as volunteer personnel for up to s ix (6) charitable gaming 22
events or sessions per week. A person engaged in the conduct and administration of 23
charitable gaming shall not receive any compensation for services related to the 24
charitable gaming activities, including tipping. Net receipts deriv ed from charitable 25
gaming shall not inure to the private benefit or financial gain of any individual. Any 26
effort or attempt to disguise any other type of compensation or private inurement 27
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shall be considered an unauthorized diversion of funds and shall be actionable 1
under KRS 238.995. 2
(5) A licensed charitable organization shall not contract with, or otherwise utilize the 3
services of, any management company, service company, or consultant in managing 4
or conducting any aspect of charitable gaming. 5
(6) A lice nsed charitable organization shall not purchase or lease charitable gaming 6
supplies and equipment from any person not licensed as a distributor in the 7
Commonwealth of Kentucky. 8
(7) A licensed charitable organization shall not accept any merchandise prizes donated 9
by any owner, officer, employee, or contractee of a licensed manufacturer, 10
distributor, charitable gaming facility, or any of their affiliates, or any member of 11
their immediate families. 12
(8) (a) Each organization's gaming supplies shall be maintained in a location separate 13
from another organization's gaming supplies. 14
(b) This location shall also be locked and access shall be controlled. 15
(c) Unless otherwise directed by the office, an organization's supplies and 16
equipment remain the property of the o rganization regardless of where they 17
are stored and must be accessible to the organization at all reasonable times 18
upon request. 19
(9) Any advertisement of charitable gaming, regardless of the medium used, shall 20
contain the name of the charitable organizatio n conducting the charitable gaming 21
and its license number. An advertisement for a bingo session or sessions shall not 22
advertise a bingo prize in excess of the limitation of five thousand dollars ($5,000) 23
per twenty-four (24) hour period set forth in KRS 238.545(1). 24
(10) A licensed charitable organization authorized to offer the play of electronic 25
pulltab devices shall restrict access to the area or areas where electronic pulltab 26
devices are located and ensure persons under the age of twenty -one (21) do not 27
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access those areas or participate in the play of those activities. 1
(11) (a) If a licensed charitable organization is offering for play electronic pulltab 2
devices at premises that are restricted in their entirety to ages twenty -one 3
(21) and over, the charit able organization shall establish one (1) cordoned -4
off area for all electronic pulltab devices that is readily visible to the 5
chairperson for monitoring the charitable gaming activity. 6
(b) If a licensed charitable organization is offering for play electron ic pulltab 7
devices at premises where persons under the age of twenty -one (21) are 8
allowed and five (5) or more devices are present, the charitable organization 9
shall: 10
1. Establish one (1) cordoned -off area for all electronic pulltab devices 11
that is readily visible to the chairperson for monitoring the charitable 12
gaming activity; 13
2. Keep a chairperson, who is employed by the licensed charitable 14
organization, on staff full -time to monitor the entrance of the 15
cordoned-off area to persons twenty-one (21) and over; and 16
3. Allow patrons access only after identification is checked by the 17
chairperson to confirm the patron is twenty-one (21) years or older. 18
(c) If a licensed charitable organization is offering for play electronic pulltab 19
devices at premises where per sons under the age of twenty -one (21) are 20
allowed and four (4) or fewer devices are present, the charitable 21
organization shall: 22
1. Establish one (1) cordoned -off area for all electronic pulltab devices 23
that is readily visible to the chairperson for monitor ing the charitable 24
gaming activity; 25
2. Keep a chairperson on staff to monitor the entrance of the cordoned -26
off area to persons over twenty-one (21) and over; and 27
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3. Allow patrons access only after identification is checked by the 1
chairperson to confirm the patron is twenty-one (21) years or older. 2
(d) If a licensed charitable organization violates paragraph (a), (b), or (c) of 3
this subsection, the licensed charitable organization or charitable gaming 4
facility shall be: 5
1. Fined for: 6
a. The first violation, one thousand dollars ($1,000); and 7
b. The second violation, two thousand five hundred dollars 8
($2,500); and 9
2. For the third violation within a one (1) year period at the same 10
premises, prohibited from conducting charitable gaming at t he 11
premises. 12
(e) The corporation may promulgate administrative regulations in accordance 13
with KRS Chapter 13A that are reasonably necessary to ensure the safety 14
and well-being of minors and the security of the premises in its entirety. 15
(12) (a) Notwithstanding this section, a licensed charitable organization may 16
provide reasonable renumeration to a chairperson who is required to attend 17
trainings by the corporation or who is required to check identification to 18
enter a cordoned -off area for the time spent con ducting those trainings or 19
identification checks. 20
(b) Prior to July 1, 2027, the corporation shall create an online version for the 21
training of chairpersons. 22
Section 31. KRS 238.545 is amended to read as follows: 23
(1) A licensed charitable organization shall be limited by the following: 24
(a) In the conduct of bingo, to one (1) session per day, three (3) sessions per 25
week, for a period not to exceed five (5) consecutive hours in any day and not 26
to exceed fifteen (15) total hours per week: 27
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1. A licensed charitable organization shall not conduct bingo at more than 1
one (1) location during the same twenty-four (24) hour period; 2
2. A licensed charitable organization shall not award prizes for bingo that 3
exceed five thousand dollar s ($5,000) in fair market value per twenty -4
four (24) hour period, including the value of door prizes; and 5
3. A person under the age of eighteen (18) shall not be permitted to 6
purchase bingo supplies or play bingo unless he or she is playing for 7
noncash pri zes and is accompanied by a parent or legal guardian and 8
only if the value of any noncash prize awarded does not exceed ten 9
dollars ($10); 10
(b) 1. A licensed charitable organization may provide card -minding devices 11
for use by players of bingo games. 12
2. If a licensed charitable organization offers card -minding devices for use 13
by players, the devices shall be capable of being used in conjunction 14
with bingo cards or paper sheets at all times. 15
3. Subject to the authority of the corporation, the office shall have broad 16
authority to define and regulate the use of card -minding devices and the 17
corporation may promulgate an administrative regulation concerning use 18
and control of them; 19
(c) Charity game tickets shall be sold only at the address of the location 20
designated on the license to conduct charitable gaming; 21
(d) Charity game tickets may be sold, with prior approval of the office: 22
1. At any authorized special charity fundraising event conducted by a 23
licensed charitable organization at any off-site location; or 24
2. By a licensed charitable organization possessing a special limited 25
charitable gaming license at any off-site location; and 26
(e) An automated charity game ticket dispenser may be utilized by a licensed 27
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charitable organization, with the prior approval of the o ffice, only at the 1
address of the location designated on the license to conduct charitable gaming. 2
The corporation may promulgate administrative regulations regulating the use 3
and control of approved automated charity game ticket dispensers. 4
(2) (a) A prize for an individual charity game ticket shall not exceed one thousand 5
four hundred ninety -nine dollars ($1,499) [five hundred ninety -nine dollars 6
($599)] in value, not including the value of cumulative or carryover prizes 7
awarded in seal card games. 8
(b) Cumulative or carryover prizes in seal card games shall not exceed two 9
thousand four hundred dollars ($2,400). 10
(c) Information concerning rules of the particular game and prizes that are to be 11
awarded in excess of fifty dollars ($50) in each separate package or series of 12
packages with the same serial number and all rules governing the handling of 13
cumulative or carryover prizes in seal card games shall be posted prominently 14
in an area where charity game tickets are sold. A legible poster that lists prizes 15
to be awarded, and on which prizes actually awarded are posted at the 16
completion of the sale of each separate package shall satisfy this requirement. 17
(d) Any unclaimed money or prize shall return to the charitable organization. 18
(e) A paper charity game ticket shall not be sold in the Commonwealth of 19
Kentucky that does not conform to the standards for opacity, randomization, 20
minimum information, winner protection, color, and cutting established by the 21
office. 22
(f) An electronic pulltab device representation of a charity game ticket shall not 23
be sold in the Commonwealth of Kentucky that does not conform to the 24
construction standards set forth in an administrative regulation promulgated 25
by the corporation. Electronic pulltab devices shall only be used for charitable 26
gaming. 27
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(g) A person under the age of eighteen (18) shall not be permitted to purchase, or 1
open in any manner, a charity game ticket. 2
(3) (a) Tickets for a raffle shall be sold separately, and each ticket shall constitute a 3
separate and equal chance to win. 4
(b) All raffle tickets shall be sold for the price stated on the ticket, and a person 5
shall not be required to purchase more than one (1) ticket or to pay for 6
anything other than a ticket to enter a raffle. 7
(c) Raffle tickets and tickets for charity fundraising raffle games approved by the 8
office which are offered exclusively at charity fundraising events and special 9
limited charity fundraising events are not required to be sold separately and 10
may be sold at discounted package rates. 11
(d) Raffle tickets shall have a unique identifier on each ticket. 12
(e) Winners shall be drawn at random at a date, time, and place announced in 13
advance or printed on the ticket. 14
(f) All prizes for a raffle shall be identified in advance of the drawi ng and all 15
prizes identified shall be awarded. 16
(4) With respect to charity fundraising events, a licensed charitable organization shall 17
be limited as follows: 18
(a) A licensed charitable organization shall not conduct a charity fundraising 19
event or a special limited charity fundraising event unless they have a license 20
for the respective event issued by the office; 21
(b) Notwithstanding any other provision of this chapter to the contrary, a 22
special license shall not be required, nor shall any age restriction app ly, for 23
any wheel game or game of chance [A special license shall not be required 24
for any wheel game] , such as a cake wheel, that awards only noncash prizes 25
the value of which does not exceed one hundred dollars ($100); 26
(c) The office may grant approval for a licensed charitable organization to play 27
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bingo games at a charity fundraising event. Cash prizes for bingo games 1
played during a charity fundraising event may not exceed five thousand 2
dollars ($5,000) for the entire event. A person under the age of eigh teen (18) 3
shall not be permitted to play bingo at a charity fundraising event unless 4
accompanied by a parent or legal guardian; 5
(d) The office may grant approval for a licensed charitable organization to play 6
special limited charitable games at a charity f undraising event authorized 7
under this section. The office shall not grant approval for the playing of 8
special limited charitable games under the provisions of a charity fundraising 9
event license unless the proposed event meets the definition of a charity 10
fundraising event held for community, social, or entertainment purposes apart 11
from charitable gaming in accordance with KRS 238.505(11); 12
(e) Except for state, county, city fairs, and special limited charity fundraising 13
events, a charity fundraising event l icense issued under this section shall not 14
exceed seventy -two (72) consecutive hours. A licensed charitable 15
organization shall not be eligible for more than eight (8) total charity 16
fundraising event licenses per year, including two (2) special limited char ity 17
fundraising event licenses. A person under eighteen (18) years of age shall not 18
be allowed to play or conduct any special limited charitable game. Subject to 19
the authority of the corporation, the office shall have broad authority to 20
regulate the conduc t of special limited charity fundraising events in 21
accordance with the provisions of KRS 238.547; and 22
(f) Charity fundraising events may be held: 23
1. On or in the premises of a licensed charitable organization; 24
2. In a licensed charitable gaming facility, s ubject to restrictions contained 25
in KRS 238.555(7); or 26
3. At an unlicensed facility which shall be subject to the requirements 27
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stipulated in KRS 238.555(3), and subject to the restrictions contained in 1
KRS 238.547(2). 2
(5) In any prosecution for selling cha ritable gaming supplies to a minor, it shall be 3
an affirmative defense that the sale was induced by the use of false, fraudulent, 4
or altered identification papers or other documents and that the appearance and 5
character of the purchaser were such that the purchaser's age could not have 6
been ascertained by any other means and that the purchaser's appearance and 7
character indicated strongly that the purchaser was of legal age to purchase 8
charitable gaming supplies. This evidence may be introduced either in mi tigation 9
of the charge or as a defense to the charge itself [Presentation of false, fraudulent, 10
or altered identification by a minor shall be an affirmative defense in any 11
disciplinary action or prosecution that may result from a violation of age restrictions 12
contained in this section, if the appearance and character of the minor were such 13
that his or her age could not be reasonably ascertained by other means]. 14
Section 32. KRS 238.555 is amended to read as follows: 15
(1) (a) A[No] person[ or organization] shall not operate a charitable gaming facility 16
unless the person [ or organization] is licensed under the provisions of this 17
chapter, except that [facilities that are utilized by two (2) or fewer charitable 18
organizations for the purpose of conducting charitable gaming, and ] facilities 19
that only host charity fundraising events[,] shall be exempt from licensure. 20
(b) The office shall charge a license fee not to exceed five thousand dollars 21
($5,000)[two thousand five hundred doll ars ($2,500)]. Specific license fees to 22
be charged shall be: 23
1. Prescribed in a graduated scale promulgated by administrative 24
regulation; and 25
2. Based on the number of sessions which the facility holds per week or 26
other applicable factors or combination of factors. 27
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(c) Charitable gaming may be conducted in a charitable gaming facility only by a 1
licensed charitable organization in accordance with the provisions of this 2
chapter. 3
(2) In the application process, an applicant for a charitable gaming facility license shall 4
submit the following information: 5
(a) The address of the facility; 6
(b) A description of the facility to include square footage of the gaming area, 7
capacity levels, and available parking; 8
(c) The applicant's ability to manage and operate the charitable gaming facility 9
and comply with all applicable standards; 10
(d) The names, addresses, dates of birth, and Social Security numbers of all 11
individuals employed by or contracted with the applicant to manage the 12
facility or provide other authorized services; 13
(e)[(d)] The name, address, date of birth, and Social Security number of any 14
individual who has a ten percent (10%) or greater financial interest in the 15
facility; 16
(f)[(e)] A copy of the lease agreement used by the applicant; and 17
(g)[(f)] Any other information the office deems appropriate. 18
(3) An[No] owner, officer, employee, or contractee of a licensed charitable gaming 19
facility or an affiliate, or any member of the immediat e family of any officer, 20
employee, or contractee of a licensed charitable gaming facility or an affiliate shall 21
not, concerning a lessee: 22
(a) Manage or otherwise be involved in the conduct of charitable gaming; 23
(b) Provide bookkeeping or other accounting s ervices related to the conduct of 24
charitable gaming; 25
(c) Handle any moneys generated in the conduct of charitable gaming; 26
(d) Advise a licensed charitable organization on the expenditure of net receipts; 27
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(e) Provide transportation services in any manner to patrons of a charitable 1
gaming activity; 2
(f) Solicit licensed charitable organizations to participate in the conduct of 3
charitable gaming at the charitable gaming facility in order to profit from 4
the conduct of charitable gaming; 5
(g) Provide advertisement or marketing services in any manner to a licensed 6
charitable organization; 7
(h)[(g)] Provide, coordinate, or solicit the services of personnel or volunteers in 8
any manner; 9
(i)[(h)] Influence or require a licensed charitable organization to use a certain 10
distributor or any particular gaming supplies; or 11
(j)[(i)] Donate or give any prize to be awarded in the conduct of charitable 12
gaming. 13
(4) A licensed charitable gaming facility shall execute a lease agreement with each 14
licensed charitable organization that d esires to conduct charitable gaming at the 15
facility. The amount of rent, goods, and services charged shall be reasonable and 16
shall be based on prevailing market values in the general locality for the goods and 17
services to be provided. The amount charged to rent a charitable gaming facility, 18
whether the facility is licensed or unlicensed, shall be a fixed fee and not be based 19
in whole or in part on a percentage of gross receipts, net proceeds derived from the 20
conduct of charitable gaming, or by reference to the number of people in 21
attendance. A licensed charitable gaming facility shall file a copy of each signed 22
lease agreement with the office. 23
(5) The number of bingo sessions conducted at a charitable gaming facility shall be 24
limited to the following: 25
(a) No more than eighteen (18) sessions per week if the charitable gaming facility 26
is located in one (1) of the following: 27
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1. A city containing a population equal to or greater than twenty thousand 1
(20,000) based upon the most recent federal decennial census; 2
2. An urban-county government; 3
3. A consolidated local government; 4
4. A charter county government; or 5
5. A county containing a city of the first class or a city containing a 6
population equal to or greater than twenty thousand (20,000) based upon 7
the most recent federal decennial census; or 8
(b) No more than eight (8) sessions per week if the charitable gaming facility is 9
located in a city other than those listed in paragraph (a) of this subsection, or 10
in a county that does not contain a city that is listed in paragraph (a) of this 11
subsection. 12
(6) A licensed charitable gaming facility shall report at least quart erly to the office and 13
shall provide any information concerning its operation that the office may require. 14
(7) A charity fundraising event at which special limited charitable games are played 15
may be conducted at a licensed charitable gaming facility, but n o licensed 16
charitable gaming facility shall be permitted to hold more than one (1) such event 17
per week or more than seven (7) per year. 18
(8) A licensed charitable gaming facility shall conspicuously display a sign bearing the 19
name and the license number of the charitable organization that is conducting 20
charitable gaming activities in the facility. 21
(9) The license to operate the charitable gaming facility shall be prominently displayed 22
on or in the premises where charitable gaming activity is being conducted, in a 23
conspicuous location that is readily accessible to gaming patrons as well as 24
employees of the office, law enforcement officials, and other interested officials. 25
Section 33. KRS 238.560 is amended to read as follows: 26
(1) The corporation may investigate, visit, and have free access to the office or place 27
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of business of a licensee or any location where licensed charitable gaming is 1
offered or conducted or any location or facility under the jurisdiction of the 2
corporation. The corporation may take other actions necessary to fulfill its 3
enforcement obligations pursuant to this chapter and KRS Chapter 230. 4
(2) The office may investigate allegations of wrongdoing upon complaint or upon its 5
own volition. The corporation by a dministrative regulation may establish 6
procedures for receiving and investigating complaints in an expeditious manner. 7
(3)[(2)] In carrying out its enforcement responsibilities, the office may: 8
(a) Inspect and examine all premises in which or on which char itable gaming is 9
conducted or charitable gaming supplies or equipment are manufactured or 10
distributed; 11
(b) Seize and remove from premises and impound charitable gaming supplies and 12
equipment for the purposes of examination and inspection pursuant to an 13
appropriate court order; 14
(c) Demand access to, inspect, and audit books and records of licensees for the 15
purpose of determining compliance with laws and the corporation's 16
administrative regulations relative to charitable gaming; and 17
(d) Conduct in-depth audits and investigations, when warranted. 18
(4)[(3)] (a) As used in this subsection, "willful" means that the conduct constituting 19
the violation was committed with intent, not accidentally or inadvertently. 20
(b) The office may take appropriate administrative acti on against any person 21
licensed or unlicensed under this chapter for any violation of the provisions 22
of this chapter or administrative regulations promulgated thereunder subject to 23
the conditions established by this subsection. 24
(c) The office may deny a lic ense, suspend or revoke a license, impose 25
probationary conditions on a license, issue a written reprimand or warning, 26
impose fines or penalties, issue a cease and desist order, or any combination 27
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thereof with regard to any licensee or other person particip ating in 1
charitable gaming in Kentucky for a violation of any federal or state statute, 2
administrative regulation, or corporation's directive, ruling, or order[place a 3
license holder on probation, issue a letter of reprimand or letter of warning, 4
and levy a fine]. An administrative fine shall not exceed five thousand dollars 5
($5,000)[one thousand dollars ($1,000)] for each offense. The office may 6
deny the issuance of a license or a license renewal if the applicant or licensee 7
has failed to pay a fine levied by the office. The corporation may by 8
administrative regulation classify types of offenses and the recommended 9
administrative action. The type of action to be taken shall be based on the 10
history of previous violations and the nature, severity, and frequen cy of the 11
offense. Administrative action authorized in this section shall be in addition to 12
any criminal penalties provided in this chapter or under other provisions of 13
law. 14
(d) 1. Notwithstanding any other provisions of this section, the office shall 15
review, within two (2) months of receipt, timely filed organization 16
quarterly reports that include payment of the fee due as reflected on the 17
organization quarterly report. If the office discovers reporting errors that 18
are not willful, the office shall, prior to taking any other administrative 19
action, issue a letter of warning to the licensee and allow the licensee 20
thirty (30) days from the issuance of the letter to correct the identified 21
violation. The purpose of this subparagraph is for the office to identify 22
correctable reporting errors in a timely manner, and to notify the 23
licensee of the errors prior to the due date of the next organization 24
quarterly report so that the errors are corrected and are not repeated in 25
subsequent organization quarterly reports. 26
2. A review conducted under subparagraph 1. of this paragraph shall not be 27
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considered an audit or final review and acceptance of an organization 1
quarterly report and payment. The office shall have four (4) years from 2
the date of filing to fully audit and re view an organization quarterly 3
report, and may pursue administrative actions against the licensee 4
related to an organization quarterly report or the information reported on 5
an organization quarterly report within the four (4) year period if 6
violations or e rrors that are not willful are discovered. This 7
subparagraph shall not be construed to require records that are not 8
needed to audit or review an organization quarterly report to be kept 9
longer than is required elsewhere in this chapter or in any related 10
administrative regulations. 11
3. Notwithstanding the provisions of subparagraph 2. of this paragraph, for 12
a violation that is determined to be willful, the office may pursue the 13
administrative actions authorized by this section at any time. 14
4. A letter of warning issued under this section shall: 15
a. Identify the violation; 16
b. Describe the corrective action necessary; 17
c. Identify the administrative actions that can be taken if the violation 18
is not addressed; and 19
d. Provide that the person shall have thirty (30) days to correct the 20
action leading to the violation. 21
(5)[(4)] The office may reinstate a license that has been revoked at any time after two 22
(2) years from the date of revocation. A license may be reinstated o nly upon a 23
finding that the violations for which the license was revoked have been corrected. 24
(6)[(5)] All departments, divisions, boards, agencies, officers, and institutions of the 25
Commonwealth of Kentucky and all subdivisions thereof, in particular loca l law 26
enforcement entities, shall cooperate with the office in carrying out its enforcement 27
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responsibilities. 1
(7)[(6)] The office shall report any activity or action which would constitute a 2
criminal offense to the appropriate authorities in the county whe re the activity or 3
action occurred and to the Attorney General. 4
(8)[(7)] All administrative actions taken under this section shall be subject to the final 5
order of the corporation. 6
Section 34. KRS 238.565 is amended to read as follows: 7
(1) A license holder may appeal any administrative action taken under KRS 238.560. A 8
license holder shall be notified in writing of any action to be taken against him or 9
her. The notification may be delivered in person or mailed by certified mail, return 10
receipt requested, to the last known address of the license holder. Service of 11
notification of administrative action, whether by hand delivery or by certified mail, 12
shall be deemed complete if the license holde r fails or refuses to accept delivery. 13
For service by hand delivery, notification shall be deemed received upon 14
acceptance of delivery or upon failure or refusal to accept delivery, and the person 15
affecting service on behalf of the office shall record the fact of the failure or refusal. 16
For service by certified mail, the notification of administrative action shall be 17
deemed received when the license holder accepts delivery or fails or refuses to 18
accept delivery at the last known address. The notification sh all specify the charges 19
against the license holder, specify the proposed administrative sanction, and advise 20
the license holder of the right to appeal the decision within ten (10) days of the date 21
of receipt of the notification. 22
(2) (a) Upon receipt of an appeal, the corporation shall schedule the matter for an 23
administrative hearing that shall be conducted in accordance with KRS 24
Chapter 13B. 25
(b) Following a notice of violation and appeal, a person may apply to the 26
corporation for a stay of the ruling, pend ing action on an appeal by the 27
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corporation. 1
(c) An application for a stay shall be received by the president or his or her 2
designee within ten (10) calendar days of the issuance of the notice of 3
violation. 4
(d) An application for a stay shall be in writing and include the following: 5
1. The name, address, telephone number, and signature of the person 6
requesting the stay; 7
2. A statement of the justification for the stay; and 8
3. The period of time for which the stay is requested. 9
(e) On a finding of good cause, the president or his or her designee may grant 10
the stay. The president or his or her designee shall issue a written decision 11
granting or denying the request for stay within five (5) calendar days from 12
the time the application for stay is received by the p resident or his or her 13
designee. If the president or his or her designee fails to timely issue a 14
written decision, then the stay is deemed granted. The president or his or 15
her designee may rescind a stay granted under this subsection for good 16
cause. 17
(f) A person who is denied a stay by the president or his or her designee, or has 18
a previously granted stay rescinded under paragraph (e) of this subsection, 19
may petition the corporation to overrule the president's or designee's denial 20
or rescission of the stay. The petition shall be filed in writing with the 21
chairperson of the board of directors of the corporation and received by the 22
chairperson within ten (10) calendar days of the mailing of the president's 23
or designee's denial of the stay. The petition shall s tate the name, address, 24
phone number, and signature of the petitioner; a statement of justification 25
of the stay; and the time period for which the stay is requested. The 26
chairperson shall convene a special meeting of the board of directors of the 27
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corporation within ten (10) calendar days of receipt of the petition, and the 1
corporation shall issue a written final order granting or denying the petition 2
within two (2) calendar days of the special meeting. If the corporation fails 3
to timely issue a final order on the petition, then the stay is granted. The 4
corporation may rescind a stay granted under this subsection for good 5
cause. 6
(g) A person who is denied or has a previously granted stay rescinded by the 7
corporation may file an appeal of the final written ord er of the corporation 8
in the Circuit Court of the county in which the cause of action arose. 9
(h) The fact that a stay is granted does not create a presumption that the notice 10
of violation is invalid. 11
(3) Any provisions of KRS Chapter 13B notwithstanding, within twenty (20) days after 12
the conclusion of a hearing, the hearing officer shall prepare and present to the 13
corporation a recommended order based on findings of fact and conclusions of law. 14
Within thirty (30) days of receipt of the recommended order, th e corporation shall 15
affirm, reject, or modify, in whole or in part, the recommended order and shall issue 16
a final order. The final order shall be the final administrative action on the matter 17
and a copy of the final order shall be mailed to the license hol der, by certified mail, 18
return receipt requested. 19
(4) Pursuant to KRS 13B.120(7), the corporation shall automatically hear and issue a 20
final order regarding any decision of the corporation that would otherwise be 21
subject to appeal. 22
(5) Any administrative a ction taken under this section shall, upon appeal, be stayed 23
until a final order is issued, with the exception of a summary suspension. The 24
corporation may issue an emergency order pursuant to KRS 13B.125 to summarily 25
suspend a license upon finding that co ntinued operation of the license holder 26
pending a hearing would constitute a threat to the public health, safety, or welfare. 27
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(6) (a) A summary suspension, notice, or order to cease operations shall only be 1
issued by the corporation if there is an imminent risk to the health and 2
safety of the public or of the misappropriation of charitable gaming 3
revenues. 4
(b) 1. A license holder may first appeal a summary suspension under 5
paragraph (a) of this subsection to the corporation. 6
2. Upon receipt of an appeal, the corporation shall issue a decision to the 7
license holder within twenty (20) days. 8
3. a. If the license holder receives a determination from the 9
corporation that the ceasing of operations stands, the license 10
holder may appeal again to the corporation; and 11
b. Upon receipt of the second appeal, the corporation shall 12
schedule the matter for an ad ministrative hearing that shall be 13
conducted in accordance with KRS Chapter 13B. 14
(7) This chapter shall not prohibit the corporation from temporarily suspending 15
operations of an individual electronic gaming device in the event of a technical 16
breach or temporary emergency. 17
(8) A final order of the corporation may be appealed to the Circuit Court of the county 18
where the appellant works or resides in accordance with KRS Chapter 13B. If the 19
license holder against whom administrative action is proposed does not request an 20
appeal of the action, the corporation shall enter a final order imposing the proposed 21
administrative action. 22
Section 35. KRS 243.500 is amended to read as follows: 23
Any license may be revoked or suspended for the following causes: 24
(1) Conviction of the licensee or the licensee's agent, servant, or employee for selling 25
any illegal alcoholic beverages or cannabis -infused beverages on the licensed 26
premises. 27
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(2) Making any false, material statements in an applicatio n or renewal application for a 1
license or supplemental license. 2
(3) Conviction of the licensee or any of the licensee's agents, servants, or employees of: 3
(a) Two (2) violations of the terms and provisions of KRS Chapters 241 to 244, 4
or any act regulating the manufacture, sale, and transportation of alcoholic 5
beverages or the sale, distribution, or transportation of cannabis -infused 6
beverages within two (2) consecutive years; 7
(b) Two (2) misdemeanors directly or indirectly attributable to the use of 8
alcoholic beverages or cannabis-infused beverages within two (2) consecutive 9
years; or 10
(c) Any felony. 11
(4) Failure or default of a licensee to pay an excise tax or any part of the tax or any 12
penalties imposed by or under the provisions of any statutes, ordinances , or Acts of 13
Congress relative to taxation, or for a violation of any related administrative 14
regulations promulgated by the Department of Revenue. 15
(5) (a) Revocation of any license or permit provided in KRS 243.060, 243.070, 16
243.600, and 243.610, or grante d under any Act of Congress relative to the 17
regulation of the manufacture, sale, and transportation of alcoholic beverages. 18
(b) Revocation of any license established under KRS 243.200, 243.403, or 19
243.405 relative to the sale, distribution, or transportati on of cannabis-infused 20
beverages. 21
(6) Setting up, conducting, operating, or keeping, on the licensed premises, any 22
gambling game, device, machine, contrivance, lottery, gift enterprise, handbook, or 23
facility for betting or transmitting bets on horse races; or permitting to be set up, 24
conducted, operated, kept, or engaged in, on the licensed premises, any gambling 25
game, device, machine, contrivance, lottery, gift enterprise, handbook, or facility. 26
This subsection shall not apply to: 27
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(a) The sale of lottery tickets sold under the provisions of KRS Chapter 154A; 1
(b) The operation of a pari -mutuel system for betting, or the operation of sports 2
wagering, where authorized by law; 3
(c) The conduct of charitable gaming by a charitable organization licensed or 4
permitted under KRS Chapters 230 and 238;[ or] 5
(d) Special temporary raffles of alcoholic beverages under KRS 243.036; 6
(e) The conduct of fantasy contests under KRS Chapter 230; 7
(f) The conduct of fixed-odds wagering under KRS Chapter 230; or 8
(g) Wagering on live horse races and historical horse races authorized by KRS 9
Chapter 230. 10
(7) Conviction of the licensee, the licensee's agents, servants, or employees for: 11
(a) The trafficking or possession upon the licensed premises of controlled or 12
illegal substances described in KRS Chapter 218A, including synthetic drugs; 13
(b) Knowingly permitting the trafficking or possession by patrons upon the 14
licensed premises of controlle d or illegal substances described in KRS 15
Chapter 218A, including synthetic drugs; or 16
(c) Knowingly receiving stolen property upon the licensed premises. 17
(8) Failure to comply with the terms of a final order of the board. 18
Section 36. KRS 436.480 is amended to read as follows: 19
KRS Chapter 528 shall not apply to pari -mutuel, fantasy contests, fixed -odds wagering, 20
wagering on live horse races and historical horse races, or sports wagering authorized 21
under the provisions of KRS Chapter 230. 22
Section 37. KRS 525.090 is amended to read as follows: 23
(1) A person is guilty of loitering when the person: 24
(a) Loiters or remains in a public place for the purpose of gambling with cards, 25
dice, or other g ambling paraphernalia, except that the provisions of this 26
section shall not apply if the person is participating in charitable gaming 27
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defined by KRS 238.505, or is engaged in sports wagering , fantasy contests, 1
fixed-odds wagering, or wagering on live horse races and historical horse 2
races licensed under KRS Chapter 230; 3
(b) Loiters or remains in a public place for the purpose of unlawfully using a 4
controlled substance; 5
(c) Loiters or remains in or about a school, college, or university building or 6
grounds, not having any reason or relationship involving custody of or 7
responsibility for a pupil or student or any other specific legitimate reason for 8
being there and not having written permission from anyone authorized to 9
grant the same; or 10
(d) Loiters or remains in any transportation facility, unless specifically authorized 11
to do so, for the purpose of soliciting or engaging in any business, trade, or 12
commercial transactions involving the sale of merchandise or services. 13
(2) Loitering is a violation. 14
Section 38. KRS 528.010 is amended to read as follows: 15
The following definitions apply in this chapter unless the context otherwise requires: 16
(1) "Advancing gambling activity": 17
(a) Means[-- A person "advances gambling activity" whe n, acting other than as a 18
player, he or she engages in] conduct a person engages in other than as a 19
player that materially aids any form of gambling activity not authorized 20
under KRS Chapter 154A, 230, or 238. 21
(b) Includes[The conduct shall include,] but is not limited to [,] conduct directed 22
toward the: 23
1. Establishment of the particular game, contest, scheme, device, or 24
activity involved;[ toward the ] 25
2. Acquisition or maintenance of premises, paraphernalia, equipment, or 26
apparatus therefor;[ toward the ] 27
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3. Solicitation or inducement of persons to participate therein;[ toward the] 1
4. Actual conduct of the playing phases thereof; or[ toward the ] 2
5. Arrangement of any of its financial or recording phases or toward any 3
other phase of its operation. 4
(c) A person who gambles at a social game of chance on equal terms with other 5
participants does not otherwise advance gambling activity by performing acts, 6
without remuneration or fee, directed toward the arrangement or facilitation of 7
the game , such as inviting persons to play, permitting the use of premises 8
therefor and supplying equipment used therein; 9
(2) "Bookmaking" means advancing gambling activity by unlawfully accepting bets 10
upon the outcome of future contingent events from members of the public as a 11
business not authorized under KRS Chapter 230; 12
(3) "Charitable gaming" means games of chance conducted by charitable organizations 13
licensed and regulated under the provisions of KRS Chapters 230 and 238; 14
(4) (a) "Coin-operated amusement machine" means a lawful machine or device that 15
requires the direct or indirect payment of consideration, including but not 16
limited to the insertion of a coin, currency, ticket, token, or similar object, or 17
the depositing of funds with the operator or owner of the device, and that 18
contains no material element of chance and automatically, by or through some 19
mechanical operation, affords music or amusement of some character with or 20
without vending any merchandise, but in addition to any merchandise. 21
(b) A coin -operated amusement machine shall not deliver or entitle the person 22
playing or operating the game to receive cash, cash equivalents, gift cards, or 23
vouchers, billets, tickets, tokens, electronic credits or any item that can be 24
exchanged for cash, cash equivalents, gift cards, merchandise, or something of 25
value, unless otherwise provided under this section. 26
(c) A coin -operated amusement machine may entitle the person playing to a 27
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noncash, merchandise prize or a voucher, billet, ticket, token, or electronic 1
credit redeemable only for a noncash, merchandise prize under the follo wing 2
rules: 3
1. The wholesale value of a merchandise prize awarded as a result of the 4
single play of a machine, either directly or as a result of redemption of a 5
redeemable voucher, does not exceed twenty-five dollars ($25); 6
2. Redeemable vouchers are not redeemable for any merchandise prize that 7
has a wholesale value of more than twenty -five dollars ($25) times the 8
fewest number of single plays necessary to accrue the redeemable 9
vouchers required to obtain that prize; and 10
3. Any redeemable vouchers or merch andise prizes are distributed at the 11
site of the coin-operated amusement machine at the time of play. 12
(d) The noncash merchandise prize shall not be: 13
1. An alcoholic beverage; 14
2. Eligible for purchase or repurchase; or 15
3. Exchangeable for any cash, cash eq uivalents, or something of value 16
whatsoever; 17
(5) (a) "E-sports competition" means a league, competitive circuit, tournament, or 18
similar competition in which: 19
1. Two (2) or more participants or teams of participants compete directly 20
against each other for e ntertainment and prizes in the same video game 21
at the same time, typically for spectators; 22
2. Results are determined solely on the basis of the skill of the players; 23
3. The number of participants is fixed before the beginning of the 24
competition; 25
4. Any fee collected to participate in the competition shall be collected 26
from all participants before the competition begins; 27
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5. At least one (1) participant shall receive something of value based on the 1
results of the competition; and 2
6. The value of any prize sha ll be predetermined before the competition 3
begins. 4
(b) E-sports shall not include traditional casino games which include but are not 5
limited to poker, roulette, craps, or blackjack; 6
(6) (a) "Gambling" means staking or risking something of value upon the ou tcome of 7
a contest, game, gaming scheme, or gaming device which is based upon an 8
element of chance, in accord with an agreement or understanding that 9
someone will receive something of value in the event of a certain outcome. 10
"Gambling" includes playing or offering for play any game, contest, or 11
competition utilizing a gambling device. 12
(b) "Gambling" does not include: 13
1. A contest or game in which eligibility to participate is determined by 14
chance and the ultimate winner is determined by skill; 15
2. Charitable gaming which is licensed and regulated under the provisions 16
of KRS Chapter 238; 17
3. E-sports competitions; 18
4. Skill-based contests;[ or] 19
5. The use or operation of any devices or machines that are described in 20
subsection (7)(b) of this section; 21
6. Fantasy contests regulated under KRS Chapter 230; or 22
7. Fixed-odds wagering as defined in Section 1 of this Act; 23
(7) (a) "Gambling device" means: 24
1. Any so-called slot machine or any other machine or mechanical device 25
which when operated may deliver, as a result of the application of any 26
element of chance, any money or property, or by the operation of which 27
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a person may become entitled to receive, as the result of the application 1
of any element of chance, any money or property; 2
2. Any mechanical or electron ic device permanently located in a business 3
establishment, including a private club, that is offered or made available 4
to a person to play or participate in a simulated gambling program in 5
return for direct or indirect consideration, including but not limi ted to 6
consideration paid for internet access or computer time, or a 7
sweepstakes entry, which when operated may deliver as a result of the 8
application of any element of chance, regardless of whether the result is 9
also partially or predominantly based on skill, any money or property, or 10
by the operation of which a person may become entitled to receive, as 11
the result of the application of any element of chance, regardless of 12
whether the result is also partially or predominantly based on skill, any 13
money or property; 14
3. Any other machine or any mechanical, electronic, or other device, 15
including but not limited to roulette wheels, gambling tables and similar 16
devices, designed and manufactured primarily for use in connection with 17
gambling and which when operated may deliver, as the result of the 18
application of any element of chance, any money or property, or by the 19
operation of which a person may become entitled to receive, as the 20
result of the application of any element of chance, any money or 21
property; or 22
4. Any electronic, computerized, or mechanical contrivance, terminal, 23
machine, or other device that: 24
a. Requires the direct or indirect payment of consideration which 25
may include and shall not be limited to the insertion of a coin, 26
currency, ticket, token, or si milar object, or by depositing funds 27
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with the operator or owner of the device, to operate, play, or 1
activate a game; and 2
b. Offers games the outcomes of which are determined by any 3
element of skill of the player and may deliver or entitle the person 4
playing or operating the device to receive cash, cash equivalents, 5
or gift cards or vouchers, billets, tickets, tokens, or electronic 6
credits to be exchanged for cash or to receive merchandise or 7
something of value, whether the payoff is made automatically 8
from the device or manually. 9
(b) The following shall not be considered gambling devices within this definition: 10
1. Devices used in wagering on live races at licensed [dispensing or 11
selling combination or French pools on licensed, regular] racetracks 12
during races on said tracks; 13
2. Devices used in wagering [dispensing or selling combination or French 14
pools] on historical races at licensed, regular racetracks as lawfully 15
authorized by the Kentucky Horse Racing and Gaming Corporation; 16
3. Electro-mechanical pinball machines specially designed, constructed, set 17
up, and kept to be played for amusement only. Any pinball machine 18
shall be made to receive and react only to the deposit of coins during the 19
course of a game. The ultimate and only award given directly or 20
indirectly to any player for the attainment of a winning score or 21
combination on any pinball machine shall be the right to play one (1) or 22
more additional games immediately on the same device at no further 23
cost. The maximum number of free games that can be won, r egistered, 24
or accumulated at one (1) time in operation of any pinball machine shall 25
not exceed thirty (30) free games. Any pinball machine shall be made to 26
discharge accumulated free games only by reactivating the playing 27
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mechanism once for each game relea sed. Any pinball machine shall be 1
made and kept with no meter or system to preserve a record of free 2
games played, awarded, or discharged. Nonetheless, a pinball machine 3
shall be a gambling device if a person gives or promises to give money, 4
tokens, mercha ndise, premiums, or property of any kind for scores, 5
combinations, or free games obtained in playing the pinball machine in 6
which the person has an interest as owner, operator, keeper, or 7
otherwise; 8
4. Devices used in the conduct of charitable gaming; 9
5. Coin-operated amusement machines; 10
6. Devices used for wagering exempted from the application of this chapter 11
pursuant to KRS 436.480; 12
7. Devices used in e-sports competitions;[ or] 13
8. Devices used in skill -based contests, provided such devices do not meet 14
the definition of gambling devices in paragraph (a) of this subsection; or 15
9. Devices used for fixed-odds wagering; 16
(8) "Lottery and gift enterprise" means: 17
(a) A gambling scheme in which: 18
1. The players pay or agree to pay something of value for chances, 19
represented and differentiated by numbers or by combinations of 20
numbers or by some other media, one (1) or more of which are to be 21
designated the winning ones; 22
2. The ultimate winner is to be determined by a drawing or by some other 23
method based upon the element of chance; and 24
3. The holders of the winning chances are to receive something of value; 25
and 26
(b) A gift enterprise or referral sales plan which meets the elements of a lottery 27
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listed in paragraph (a) of this subsection is to be considered a lottery un der 1
this chapter; 2
(9) "Mutuel" or "the numbers games" means a form of lottery in which the winning 3
chances or plays are not determined upon the basis of a drawing or other act on the 4
part of persons conducting or connected with the scheme, but upon the basis of the 5
outcome or o utcomes of a future contingent event or events otherwise unrelated to 6
the particular scheme; 7
(10) "Player" means a person who engages in any form of gambling solely as a 8
contestant or bettor, without receiving or becoming entitled to receive any profit 9
therefrom other than personal gambling winnings, and without otherwise rendering 10
any material assistance to the establishment, conduct, or operation of the particular 11
gambling activity. A person who engages in "bookmaking" as defined in subsection 12
(2) of this section is not a "player." The status of a "player" shall be a defense to any 13
prosecution under this chapter; 14
(11) "Profiting from gambling activity" occurs[-- A person "profits from gambling 15
activity"] when, other than as a player, a person[he or she] accepts or receives or 16
agrees to accept or receive money or other property pursuant to an agreement or 17
understanding with any other person whereby the person[he or she] participates or 18
is to participate in the proceeds of gambling activity not authorized und er KRS 19
Chapter 154A, 230, or 238; 20
(12) "Simulated gambling program" means any method intended to be used by a person 21
playing, participating, or interacting with an electronic device that may, through the 22
application of any element of chance, either deliver money or property or an 23
entitlement to receive money or property; 24
(13) "Skill" means the knowledge, dexterity, or any other ability or expertise of a natural 25
person; 26
(14) "Skill-based contest" means a live, in -person competitive event among two (2) or 27
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more individuals or teams of individuals in which the ultimate winner is determined 1
by skill and the competitive event does not utilize a gambling device; and 2
(15) (a) "Something of value" means any money or property, any token, object, or 3
article exchangeable for money or property, or any form of credit or promise 4
directly or indirectly contemplating transfer of money or property or of any 5
interest therein, or involving extension of a service, entertainment, or a 6
privilege of playing at a game or scheme without charge. 7
(b) "Something of value" does not include the award of a free, extended, or 8
continuous play which is awarded as a prize for playing a game or scheme for 9
a charge. 10
Section 39. KRS 528.070 is amended to read as follows: 11
(1) A person is guilty of permitting gambling when, having possession or control of 12
premises which he or she knows are being used to advance gambling activity that is 13
not licensed under KRS Chapter 154A, 230, or 238 , he or she fails to halt or abate 14
or attempt to halt or abate such use within a reasonable period of time. 15
(2) Permitting gambling is a Class B misdemeanor. 16
Section 40. KRS 2.015 is amended to read as follows: 17
Persons of the age of eighteen (18) years are of the age of majority for all purposes in this 18
Commonwealth except for the purchase of alcoholic beverages , sports wagering, and for 19
purposes of care and treatment of children with disabilities, for which twenty -one (21) 20
years is the age of majority, all other statutes to the contrary notwithstanding. 21
Section 41. KRS 68.182 is amended to read as follows: 22
(1) Occupational license fees levied under KRS 67.083, 68.180, and 68.197 by the 23
fiscal court of a county, consolidated local government, urban -county government, 24
charter county government, or unified local government may apply to racetrack 25
extensions. 26
(2) As used in this section: 27
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(a) "Historical horse race" has the same meaning as in KRS 138.511; and 1
(b) 1. "Racetrack extension" means any facility: 2
a. Owned, leased, or purchased by an association licensed by the 3
Kentucky Horse Racing and Gaming Corporation und er KRS 4
230.300; 5
b. That meets the definition of "track" under KRS 6
230.210(47)[(37)](c); and 7
c. Where pari-mutuel wagering on historical horse races is conducted 8
on terminals approved by the Kentucky Horse Racing and Gaming 9
Corporation. 10
2. "Racetrack extension" does not include a facility or real property used 11
for training horses or at which live horse races are run for stakes, purses, 12
or prizes under the jurisdiction of the Kentucky Horse Racing and 13
Gaming Corporation. 14
Section 42. KRS 91.202 is amended to read as follows: 15
(1) Occupational license fees levied under KRS 91.200 by the legislative body of a city 16
of the first class may apply to racetrack extensions. 17
(2) As used in this section: 18
(a) "Historical horse race" has the same meaning as in KRS 138.511; and 19
(b) 1. "Racetrack extension" means any facility: 20
a. Owned, leased, or purchased by an association licensed by the 21
Kentucky Horse Racing and Gaming Corporation under KRS 22
230.300; 23
b. That meets the definition of "track" under KRS 24
230.210(47)[(37)](c); and 25
c. Where pari-mutuel wagering on historical horse races is conducted 26
on terminals approved by the Kentucky Horse Racing and Gaming 27
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Corporation. 1
2. "Racetrack extension" does not include a facility or real property used 2
for training horses or at which live horse races are run for stakes, purses, 3
or prizes under the jurisdiction of the Kentucky Horse Racing and 4
Gaming Corporation. 5
Section 43. KRS 92.282 is amended to read as follows: 6
(1) Occupational license fees levied under KRS 92.281 by th e legislative body of a city 7
may apply to racetrack extensions. 8
(2) As used in this section: 9
(a) "Historical horse race" has the same meaning as in KRS 138.511; and 10
(b) 1. "Racetrack extension" means any facility: 11
a. Owned, leased, or purchased by an assoc iation licensed by the 12
Kentucky Horse Racing and Gaming Corporation under KRS 13
230.300; 14
b. That meets the definition of "track" under KRS 15
230.210(47)[(37)](c); and 16
c. Where pari-mutuel wagering on historical horse races is conducted 17
on terminals approved by the Kentucky Horse Racing and Gaming 18
Corporation. 19
2. "Racetrack extension" does not include a facility or real property used 20
for training horses or at which live horse races are run for stakes, purses, 21
or prizes under the jurisdiction of the Kentucky Hors e Racing and 22
Gaming Corporation. 23
Section 44. KRS 238.550 is amended to read as follows: 24
(1) All adjusted gross receipts from charitable gaming shall be handled only by 25
chairpersons, officers, or employees of the licensed charitable organization. 26
(2) Except as authorized by subsection (11) of this section, within five (5) business 27
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days after the completion of a charitable gaming event or session, all gross receipts 1
and adjusted gross receipts shall be deposited into one ch ecking account devoted 2
exclusively to charitable gaming. This checking account shall be designated the 3
"charitable gaming account," and the licensed charitable organization shall maintain 4
its account at a financial institution located in the Commonwealth o f Kentucky. [ 5
No] Other funds shall not [may] be deposited or transferred into the charitable 6
gaming account. 7
(3) All payments for charitable gaming expenses, payments made for prizes purchased, 8
and any charitable donations from charitable gaming receipts sh all be made from 9
the charitable gaming account and the payments or donations shall be made only by 10
bona fide officers of the organization by checks having preprinted consecutive 11
numbers and made payable to specific persons or organizations. No check drawn on 12
the charitable gaming account may be made payable to "cash," or "bearer," except 13
that a licensed charitable organization may withdraw start -up funds for a charitable 14
gaming event or session from the charitable gaming account by check made payable 15
to "ca sh" or "bearer," if these start -up funds are redeposited into the charitable 16
gaming account together with all adjusted gross receipts derived from the particular 17
event or session. Checks shall be imprinted with the words "charitable gaming 18
account" and sha ll contain the organization's license number on the face of each 19
check. Payments for charitable gaming expenses, prizes purchased, and charitable 20
donations may be made by electronic funds transfer if the payments are made to 21
specific persons or organizations. The corporation may by administrative regulation 22
adopt alternative reporting requirements for charitable gaming of limited scope or 23
duration, if these requirements are sufficient to ensure accountability for all moneys 24
handled. 25
(4) A licensed charitabl e organization shall expend net receipts exclusively for 26
purposes consistent with the charitable, religious, educational, literary, civic, 27
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fraternal, or patriotic functions or objectives for which the licensed charitable 1
organization received and maintains federal tax-exempt status, or consistent with its 2
status as a local school district, a common school, an institution of higher education, 3
or a state college or university. No net receipts shall inure to the private benefit or 4
financial gain of any individual. 5
(5) Accurate records and books shall be maintained by each organization exempt from 6
licensure under KRS 238.535(1) and each licensed charitable organization for a 7
period of three (3) years. Office staff shall have access to these records at 8
reasonable times. Licensed charitable organizations and exempt organizations shall 9
maintain their charitable gaming records at their offices or places of business within 10
the Commonwealth of Kentucky as identified in their license applications or 11
applications for exe mpt status. An exempt organization shall submit a yearly 12
financial report in accordance with KRS 238.535(2), and failure to file this report 13
shall constitute grounds for revocation of the organization's exempt status. 14
(6) All licensed charitable organizations that have annual gross receipts of two hundred 15
thousand dollars ($200,000) or less and do not have a weekly bingo session shall 16
report to the office annually at the time and on a form established in administrative 17
regulations promulgated by the corporation. 18
(7) All other licensed charitable organizations shall submit reports to the office at least 19
quarterly at the time and on a form established in administrative regulations 20
promulgated by the corporation. 21
(8) Failure by a licensed charitable organization to file reports required under this 22
chapter shall constitute grounds for revocation of the organization's license or 23
denial of the organization's application to renew its license in accordance with KRS 24
238.560(4)[(3)]. Reports filed by a licensed charitable organization shall include but 25
shall not be limited to the following information: 26
(a) All gross receipts received from charitable gaming for the reporting period, 27
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classified by type of gaming activity; 1
(b) The names and addresses of all persons who are winners of prizes having a 2
fair market value of six hundred dollars ($600) or more; 3
(c) All expenses paid and the names and addresses of all persons to whom 4
expenses were paid; 5
(d) All net receipts retained and the names and addresses of all charitable 6
endeavors that received money from the net receipts; and 7
(e) Any other information the office deems appropriate. 8
(9) A[No] licensed charitable organization shall not incur charitable gaming expenses, 9
except as provided in this chapter. A[No] licensed charitable organization shall not 10
be permitted to expend amounts in excess of prevailing market rates for the 11
following charitable gaming expenses: 12
(a) Charitable gaming supplies and equipment; 13
(b) Rent; 14
(c) Utilities; 15
(d) Insurance; 16
(e) Advertising; 17
(f) Janitorial services; 18
(g) Bookkeeping and accounting services; 19
(h) Security services; 20
(i) Membership dues for its participation in any charitable gaming trade 21
organization; and 22
(j) Any other expenses the corporation may d etermine by administrative 23
regulation to be legitimate. 24
(10) A[No] licensed charitable organization shall not expend receipts from charitable 25
gaming activities nor incur expenses to form, maintain, or operate as a labor 26
organization. 27
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(11) For the purposes of deposits under subsection (2) of this section, a licensed 1
charitable organization conducting charitable gaming events or sessions shall only 2
be required to deposit its gross receipts and adjusted gross receipts one (1) time per 3
week if the following conditions are met: 4
(a) The charitable gaming involves only games using charity game tickets; 5
(b) The charitable gaming is not part of a charity fundraising event; and 6
(c) The licensed charitable organization's deposits of gross receipts and adjusted 7
gross re ceipts from charitable gaming total less than two thousand five 8
hundred dollars ($2,500) in the week prior to the deposit. 9
SECTION 45. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 10
READ AS FOLLOWS: 11
(1) The General Assembly finds and declares that: 12
(a) The Commonwealth of Kentucky is internationally recognized as the 13
preeminent center of the Thoroughbred horse industry, serving as the 14
breeding, sales, and racing capital of the world; 15
(b) The economic impact of the Thoroug hbred industry in Kentucky generates 16
billions of dollars annually, supports tens of thousands of jobs, and sustains 17
a complex ecosystem of breeders, farms, veterinarians, sales companies, and 18
racetracks; 19
(c) The integrity, accuracy, and reliability of pedi gree records are foundational 20
to the valuation, breeding, and sale of Thoroughbred horses, directly 21
influencing market confidence and investment in the industry; 22
(d) A registrar of Thoroughbred horses ensures the maintenance of accurate 23
lineage records, ow nership documentation, and breeding data necessary to 24
preserve the integrity of the breed; 25
(e) A registrar operating with transparency, accountability, and collaboration 26
with breeders and industry stakeholders builds trust and confidence in the 27
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recordkeeping; 1
(f) Kentucky has a compelling state interest in ensuring that any registrar of 2
Thoroughbred horses operates in a manner that promotes fairness, 3
competition, and long-term sustainability within the industry; 4
(g) A registrar framework within Kentucky would further solidify the 5
Commonwealth’s role as the global standard -setter for Thoroughbred 6
breeding, registration, and innovation; and 7
(h) Coordination between a registrar, breeders, and relevant regulatory or 8
industry bodies would provide a structured mechanism for evaluating 9
emerging issues, including breeding limits, genetic diversity, and indust ry 10
best practices. 11
(2) For purposes of this chapter, a registrar of Thoroughbreds shall: 12
(a) 1. Not restrict the number of mares that can be bred to a stallion or 13
otherwise refuse to register any foal based upon the number of mares 14
bred to the stallion of the foal submitted for registration, unless the 15
limitations have first been adopted and implemented by unanimous 16
consent of a vote of the representatives of the members of the 17
International Stud Book Committee; or 18
2. Not refuse to register any foal of a mare that is or seeks to be: 19
a. Bred in the Commonwealth of Kentucky; 20
b. Residing in the Commonwealth of Kentucky; or 21
c. Foaling in the Commonwealth of Kentucky; 22
if the foal would otherwise meet the registration requirements of the 23
Jockey Club but for the limitation set forth in subparagraph 1. of this 24
paragraph and the limitations have not been adopted and implemented 25
by the International Stud Book Committee; and 26
(b) Consent to the jurisdiction of the Commonwealth of Kentucky. 27
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(3) Notwithstanding any provision of this section to the contrary, if any registrar fails 1
to comply with the requirements of this chapter, the corporation shall select and 2
utilize an entity to serve as the registrar of Kentucky Thoroughbreds. 3
(4) The corporation may promulgate administrative regulations in accordance with 4
KRS Chapter 13A to implement this section, if it is required by subsection (3) of 5
this section to designate an entity to se rve as the registrar of Kentucky 6
Thoroughbreds. 7
(5) Any violation of subsection (2)(a) of this section shall be considered an unlawful 8
trade practice under KRS Chapters 365 and 367. 9
(6) Notwithstanding subsection (5) of this section, a party aggrieved by a registrar's 10
action in violation of subsection (2)(a) of this section shall have the right to seek 11
any applicable remedy, in law or in equity, against the registrar, as well as be 12
entitled to recover treble damages plus any actual damages sustained as a re sult 13
of the registrar's actions. 14
Section 46. KRS 230.400 is amended to read as follows: 15
(1) (a) There is hereby created a corporate account for the Kentucky Horse Racing 16
and Gaming Corporation, designated as the Kentucky Thoroughbred 17
development fund, consisting of moneys allocated to the fund under the 18
provisions of KRS 138.510, together with other moneys contributed to or 19
allocated to the fund from all other sources. 20
(b) Moneys to the credit of the Kentucky Thoroughbred development fund shall 21
be transferred in the following order: 22
1. One hundred thousand dollars ($100,000) each fiscal year to the 23
Kentucky problem gambling assistance account established in KRS 24
230.826; and 25
2. Remaining moneys to the Kentucky Horse Racing and Gaming 26
Corporation to be divided as follows: 27
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a. At least ninety percent (90%) shall be allocated within Kentucky 1
as set forth in this section; and 2
b. Up to ten percent (10%) for administration and operation of the 3
corporation. 4
(c) Moneys from the Kentu cky Thoroughbred development fund shall be 5
allocated to each licensed association in an amount equal to at least ninety 6
percent (90%) of the amount the association contributed to the fund. 7
(d) Moneys to the credit of the Kentucky Thoroughbred development fund at the 8
end of each fiscal year shall not lapse, but shall be carried forward in such 9
fund to the succeeding fiscal year. 10
(2) There is hereby established, under the general jurisdiction of t he Kentucky Horse 11
Racing and Gaming Corporation, a Kentucky Thoroughbred Development Fund 12
Advisory Committee. The advisory committee shall consist of five (5) members, all 13
of whom shall be residents of Kentucky, to be appointed by the chairman of the 14
Kentucky Horse Racing and Gaming Corporation by July 1 of each year. The 15
committee shall consist of two (2) Thoroughbred breeders recommended by the 16
Kentucky Thoroughbred Owners and Breeders, Inc.; one (1) Thoroughbred owner 17
recommended by the Kentucky division of the Horsemen's Benevolent and 18
Protective Association; one (1) officer or director of a licensed association 19
conducting Thoroughbred racing in Kentucky, recommended by action of all of the 20
licensed associations conducting Thoroughbred racing in Kentucky ; and one (1) 21
member of the Kentucky Horse Racing and Gaming Corporation. If any member 22
other than the corporation member has not been recommended for appointment by 23
July 1 of each year, the chairman of the Kentucky Horse Racing and Gaming 24
Corporation shall make an appointment for the organization or organizations failing 25
to recommend a member of the committee. The members of the advisory committee 26
shall serve without compensation, but shall be entitled to reimbursement for all 27
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expenses incurred in the disc harge of official business. The advisory committee 1
shall select from its membership annually a chairman and a vice chairman. 2
(3) (a) The Kentucky Thoroughbred Development Fund Advisory Committee shall 3
advise and assist the Kentucky Horse Racing and Gaming Corporation in the 4
development of the supplemental purse program provided herein for 5
Kentucky-bred Thoroughbreds, shall make recommendations to the 6
corporation with respect to the establishment of guidelines, administrative 7
regulations for the provision of supplemental purses, the amount thereof, the 8
races for which the purses are to be provided and the conditions thereof, 9
manner and method of payment of supplemental purses, registry of 10
Thoroughbred stallions standing within the Commonwealth of Kentucky, 11
registry of Kentucky -bred Thoroughbreds for purposes of this section, nature 12
and type of forms and reports to be employed and required in connection with 13
the establishment, provision for, award and payment of supplemental purses, 14
and with respect to all other matters necessary in connection with the carrying 15
out of the intent and purposes of this section. 16
(b) The Kentucky Horse Racing and Gaming Corporation shall employ qualified 17
personnel as may be required to assist the corporation and the advisory 18
committee in carrying out the provisions of this section. These persons shall 19
serve at the pleasure of the corporation and compensation for these personnel 20
shall be fixed by the corporation. 21
(4) The Kentucky Horse Racing and Gaming Corporation, with the advice and 22
assistance of the Kentucky Thoroughbred Development Fund Advisory Committee, 23
shall use the Kentucky Thoroughbred development fund to promote, enhance, 24
improve, and encourage the further and continued development of the 25
Thoroughbred breeding industry in Ke ntucky by providing, out of the Kentucky 26
Thoroughbred development fund, supplemental purses for designated stakes, 27
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handicap, allowance, nonclaiming maiden races, and claiming races contested at 1
licensed Thoroughbred race meetings in Kentucky. The Kentucky Horse Racing 2
and Gaming Corporation may, by administrative regulation promulgated in 3
accordance with KRS Chapter 13A, establish the requirements, conditions, and 4
procedures for awarding and payment of supplemental purses in designated races 5
by Kentucky -bred Thoroughbred horses. That portion of the supplemental purse 6
provided for any designated race shall be awarded and paid to the owner of the 7
horse only if the horse is a Kentucky -bred Thoroughbred duly registered with the 8
official registrar. Any portion of the supplemental purse which is not awarded and 9
paid over shall be returned to the Kentucky Thoroughbred development fund. 10
(5) (a) For purposes of this section, the term "Kentucky Thoroughbred stallion" shall 11
mean and include only a Thoroughbred stallion standing the entire breeding 12
season in Kentucky and registered as a Kentucky Thoroughbred stallion with 13
the official registrar of the Kentucky Thoroughbred development fund. 14
(b) Except for Thoroughbred horses foaled prior to January 1, 1980, the term 15
"Kentucky-bred Thoroughbreds," for purposes of this section, shall mean and 16
include only Thoroughbred horses sired by Kentucky Thoroughbred stallions 17
foaled in Kentucky and registered as a Kentucky -bred Thoroughbred with the 18
official registrar of the Kentucky Thoroughbred development fund. 19
(c) Any Thoroughbred horse foaled prior to January 1, 1980, may qualify as a 20
Kentucky-bred Thoroughbred for purposes of this section if the horse was 21
foaled in Kentucky and if the sire of the Thoroughbred was standing at stud 22
within Kentucky at the time of conception of such Thoroughbred, provided 23
the Thoroughbred is duly registered as a Kentucky -bred Thoroughbred with 24
the official registrar of the Kentucky Thoroughbred development fund. 25
(d) In order for an owner of a Kentucky -sired Thoroughbred to be eligible to 26
demand, claim, and receive a portion of a supplemental purse provided by the 27
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Kentucky Thoroughbred development fund, the Thoroughbred horse in a 1
designated race for which a supplemental purse has been provided by the 2
Kentucky Thoroughbred development fund shall have been duly registered as 3
a Kentucky -bred Thoroughbred with the official registrar of the Kentucky 4
Thoroughbred development fund prior to entry in the race. 5
(6) (a) Kentucky Thoroughbred Owners and Breeders, In c., is hereby recognized and 6
designated as the sole official registrar of the Kentucky Thoroughbred 7
development fund for the purposes of registering Kentucky Thoroughbred 8
stallions and Kentucky -bred Thoroughbreds in accordance with the terms of 9
this section and any administrative regulations promulgated by the Kentucky 10
Horse Racing and Gaming Corporation. When a Kentucky -bred 11
Thoroughbred is registered with the official registrar, the registrar shall be 12
authorized to stamp the[ Jockey Club] certificate issued for the Thoroughbred 13
with the seal of the registrar, certifying that the Thoroughbred is a duly 14
qualified and registered Kentucky -bred Thoroughbred for purposes of this 15
section. The registrar may establish and charge, with the approval of the 16
corporation, reasonable registration fees for its services in the registration of 17
Kentucky Thoroughbred stallions and in the registration of Kentucky -bred 18
Thoroughbreds. Registration records of the registrar shall be public records 19
and open to public inspection at all normal business hours and times. 20
(b) Any interested party aggrieved by the failure or refusal of the official registrar 21
to register a stallion or Thoroughbred as a Kentucky stallion or as a Kentucky-22
bred Thoroughbred shall have the right to file with th e registrar, within thirty 23
(30) days of such failure or refusal of the registrar, a petition seeking 24
registration of the Thoroughbred. The corporation shall promptly hear the 25
matter de novo and issue its order directing the official registrar to register o r 26
not to register as it may be determined by the registrar. 27
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(7) The Kentucky Horse Racing and Gaming Corporation may promulgate 1
administrative regulations to carry out the provisions and purposes of this section, 2
including the promulgation of administrativ e regulations and forms for the proper 3
registration of Kentucky stallions and Kentucky -bred Thoroughbreds with the 4
official registrar, and shall administer the Kentucky -bred Thoroughbred program 5
created hereby in a manner best designed to promote and aid i n the further 6
development of the Thoroughbred breeding industry in Kentucky, to upgrade the 7
quality of Thoroughbred racing in Kentucky, and to improve the quality of 8
Thoroughbred horses bred in Kentucky. 9
Section 47. KRS 230.811 is amended to read as follows: 10
(1) Except as provided in KRS 230.805(6), no person shall conduct, manage, or offer to 11
conduct sports wagering within the Commonwealth of Kentucky without obtaining 12
a license from the corporation. 13
(2) As a prerequisit e to obtaining a sports wagering license, a person shall be licensed 14
as an association under KRS 230.300. If sports wagering is conducted by the track 15
that chooses not to contract with a service provider, it shall comply with the 16
standards established by the corporation for service providers to ensure the integrity 17
of the system of sports wagering before conducting sports wagering in the 18
Commonwealth. 19
(3) In addition to the requirement in subsection (2) of this section, an initial fee of five 20
hundred thousand dollars ($500,000) shall be paid to the corporation before a sports 21
wagering license may be issued to a track. 22
(4) An annual renewal fee of fifty thousand dollars ($50,000) shall be required for each 23
sports wagering license. 24
(5) (a) A track or associati on shall not manage or offer to conduct fixed -odds 25
wagering within the Commonwealth of Kentucky without obtaining a 26
supplemental license from the corporation. 27
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(b) An initial fee of two thousand five hundred dollars ($2,500) shall be paid to 1
the corporation before a supplemental license may be issued to a track or 2
association. 3
(c) An annual renewal fee of two thousand five hundred dollars ($2,500) shall 4
be required for a supplemental license. 5
(6) Licensing fees under this section shall be paid to the corporation. 6
Section 48. KRS 230.990 is amended to read as follows: 7
(1) Any person who violates KRS 230.070 or KRS 230.080(3) shall be guilty of a Class 8
D felony. 9
(2) Any person who violates KRS 230.090 shall be guilty of a Class A misdemeanor. 10
(3) Any person who violates KRS 230.680 shall be guilty of a Class A misdemeanor. 11
(4) Any person who refuses to make any report or to turn over sums as required by 12
KRS 230.361 to 230.373 shall be guilty of a Class A misdemeanor. 13
(5) Any person failing to appear before the corporation at the time and place specified 14
in the summons issued pursuant to KRS 230.260(12), or refusing to testify, shall be 15
guilty of a Class B misdemeanor. False swearing on the part of any witness shall be 16
deemed perjury and punished as such. 17
(6) (a) A person is guilty of tampering with or interfering with a horse race when, 18
with the intent to influence the outcome of a horse race, he or she uses any 19
device, material, or substance not approved by the Kentucky Ho rse Racing 20
and Gaming Corporation on or in any participant involved in or eligible to 21
compete in a horse race to be viewed by the public. 22
(b) Any person who, while outside the Commonwealth and with intent to 23
influence the outcome of a horse race contested within the Commonwealth, 24
tampers with or interferes with any equine participant involved in or eligible 25
to compete in a horse race in the Commonwealth is guilty of tampering with 26
or interfering with a horse race. 27
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(c) Tampering with or interfering with a horse race is a Class C felony. 1
(7) Any participant who wagers on a sporting event in violation of KRS 230.820 or 2
participates in a fantasy contest in violation of Section 9 of this Act is guilty of a 3
Class A misdemeanor. 4
(8) Any person tampering with the ou tcome of a sporting event in violation of KRS 5
230.820 or a fantasy contest in violation of Section 9 of this Act is guilty of a 6
Class C felony. 7
Section 49. The Kentucky Horse Racing and Gaming Corporation shall present 8
a status report on the purse stabilization fund established in Section 12 of this Act no later 9
than November 30, 2027, to the Interim Joint Committee on Licensing, Occupations, and 10
Administrative Regulations, to include the amount: 11
(1) Received in the fund; and 12
(2) Of moneys bet in fixed -odds wagering on horse racing versus all other 13
sporting events. 14
Section 50. KRS 230.3615 is amended to read as follows: 15
(1) The commission, including the tax levied in KRS 138.510, deducte d from the gross 16
amount wagered by the association which operates a race track under the 17
jurisdiction of the Kentucky Horse Racing and Gaming Corporation and conducts 18
the Thoroughbred racing at which betting is conducted through a pari -mutuel or 19
other similar system, in races where the patron is required to select one (1) horse, 20
and the breaks, which breaks shall be made and calculated in accordance with 21
Section 52 of this Act [to the penny] , except on races previously run in which the 22
breaks shall be made a nd calculated in accordance with Section 52 of this Act [to 23
the penny] or retained in the pari -mutuel pools, shall not be more than seventeen 24
and one-half percent (17.5%). 25
(2) The commission, including the tax levied in KRS 138.510, deducted from the gross 26
amount wagered by the person, corporation, or association which operates a race 27
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track under the jurisdiction of the Kentucky Horse Racing and Gaming Corporation 1
and conducts Thoroughbred racing at which betting is conducted through a pari -2
mutuel or other s imilar system shall not exceed twenty -two percent (22%) of the 3
gross handle in races where the patron is required to select two (2) or more horses, 4
and the breaks, which breaks shall be made and calculated in accordance with 5
Section 52 of this Act [to the p enny], except on races previously run in which the 6
breaks shall be made and calculated in accordance with Section 52 of this Act [to 7
the penny] or retained in the pari-mutuel pools. 8
(3) The minimum wager to be accepted by any licensed association shall be t en cents 9
($0.10). The minimum pay -off on a one dollar ($1) wager shall be one dollar and 10
ten cents ($1.10); but, in the event of a minus pool, the minimum pay -off for a one 11
dollar ($1) wager shall be one dollar and five cents ($1.05). 12
(4) Each association conducting Thoroughbred racing shall pay to the corporation all 13
moneys allocated to the backside improvement fund in an amount equal to one -half 14
of one percent (0.5%) of its on-track pari-mutuel wagers. 15
Section 51. KRS 230.750 is amended to read as follows: 16
The commission, including the tax levied in KRS 138.510, deducted from the gross 17
amount wagered by the person, corporation, or association which operates a harness 18
horse track under the jurisdiction of the corporation at which betting is conducted through 19
a pari-mutuel or other similar system shall not exceed eighteen percent (18%) of the gross 20
amount handled on straight wagering pools and twenty -five percent (25%) of the gross 21
amount handled on multiple wagering pools, plus the breaks, which shall be made and 22
calculated in accordance with Section 52 of this Act [to the penny] , except on races 23
previously run in which the breaks shall be made and calculated in accordance with 24
Section 52 of this Act [to the penny] or retaine d in the pari -mutuel pools. Multiple 25
wagering pools shall include daily double, perfecta, double perfecta, quinella, double 26
quinella, trifecta, and other types of exotic betting. An amount equal to three percent 27
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(3%) of the total amount wagered and include d in the commission of a harness host track 1
shall be allocated by the harness host track in the following manner. Two percent (2%) 2
shall be allocated to the host for capital improvements, promotions, including advertising, 3
or purses, as the host track shal l elect. Three-quarters of one percent (3/4 of 1%) shall be 4
allocated to overnight purses. One-quarter of one percent (1/4 of 1%) shall be allocated to 5
the Kentucky standardbred development fund. This allocation shall be made after 6
deduction from the commi ssion of the pari -mutuel tax but prior to any other deduction, 7
allocation or division of the commission. 8
SECTION 52. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 9
READ AS FOLLOWS: 10
(1) As used in this section, "the nearest five cent ($0.05) increment" means: 11
(a) Amounts ending in one cent ($0.01) and two cents ($0.02) are rounded 12
down to the nearest ten ($0.10) cents; 13
(b) Amounts ending in three cents ($0.03) and four cents ($0.04) are rounded 14
up to the nearest five ($0.05) cents; 15
(c) Amounts ending in six cents ($0.06) and seven cents ($0.07) are rounded 16
down to the nearest five ($0.05) cents; 17
(d) Amounts ending in e ight cents ($0.08) and nine cents ($0.09) are rounded 18
up to the nearest ten ($0.10) cents; and 19
(e) Amounts ending in zero ($0.00) cents and five ($0.05) cents remain 20
unchanged. 21
(2) In order to calculate the breaks in Sections 50 and 51 of this Act: 22
(a) Rounding cash transactions to the nearest five cent ($0.05) increment may 23
occur: 24
1. When pennies are not available to complete resolution of a 25
transaction; and 26
2. On settlement of the final bill of sale, invoice, or fee after all 27
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individual items, duties, fees, taxes, and charges are calculated to the 1
exact cent; and 2
(b) Noncash transactions shall continue to be settled to the cent without 3
rounding. 4
(3) Notwithstanding any other statute to the contrary, any person operating under 5
Sections 50 and 51 of this Act shall not be in violation of any requirements, laws, 6
administrative regulations, or standards of this state or political subdivision of 7
this state based on any action taken in compliance with this section. 8
Section 53. KRS 131.190 is amended to read as follows: 9
(1) No present or former commissioner or employee of the department, present or 10
former member of a county board of assessment appeals, present or former property 11
valuation administrator or employee, present or former secretary or employee of the 12
Finance and Administration Cabinet, former secretary or employee of the Revenue 13
Cabinet, or any other person, shall intentionall y and without authorization inspect 14
or divulge any information acquired by him or her of the affairs of any person, or 15
information regarding the tax schedules, returns, or reports required to be filed with 16
the department or other proper officer, or any inf ormation produced by a hearing or 17
investigation, insofar as the information may have to do with the affairs of the 18
person's business. 19
(2) The prohibition established by subsection (1) of this section shall not extend to: 20
(a) Information required in prosecu tions for making false reports or returns of 21
property for taxation, or any other infraction of the tax laws; 22
(b) Any matter properly entered upon any assessment record, or in any way made 23
a matter of public record; 24
(c) Furnishing any taxpayer or his or her properly authorized agent with 25
information respecting his or her own return; 26
(d) Testimony provided by the commissioner or any employee of the department 27
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in any court, or the introduction as evidence of returns or reports filed with the 1
department, in an action for violation of state or federal tax laws or in any 2
action challenging state or federal tax laws; 3
(e) Providing an owner of unmined coal, oil or gas reserves, and other mineral or 4
energy resources assessed under KRS 132.820, or owners of surface la nd 5
under which the unmined minerals lie, factual information about the owner's 6
property derived from third-party returns filed for that owner's property, under 7
the provisions of KRS 132.820, that is used to determine the owner's 8
assessment. This information shall be provided to the owner on a confidential 9
basis, and the owner shall be subject to the penalties provided in KRS 10
131.990(2). The third -party filer shall be given prior notice of any disclosure 11
of information to the owner that was provided by the third-party filer; 12
(f) Providing to a third -party purchaser pursuant to an order entered in a 13
foreclosure action filed in a court of competent jurisdiction, factual 14
information related to the owner or lessee of coal, oil, gas reserves, or any 15
other mineral resources assessed under KRS 132.820. The department may 16
promulgate an administrative regulation establishing a fee schedule for the 17
provision of the information described in this paragraph. Any fee imposed 18
shall not exceed the greater of the actual cost o f providing the information or 19
ten dollars ($10); 20
(g) Providing information to a licensing agency, the Transportation Cabinet, or 21
the Kentucky Supreme Court under KRS 131.1817 , including providing 22
information to the Kentucky Horse Racing and Gaming Corpora tion for 23
compliance with licensure requirements under Section 19 of this Act; 24
(h) Statistics of gasoline and special fuels gallonage reported to the department 25
under KRS 138.210 to 138.448; 26
(i) Providing any utility gross receipts license tax return inform ation that is 27
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necessary to administer the provisions of KRS 160.613 to 160.617 to 1
applicable school districts on a confidential basis; 2
(j) Providing documents, data, or other information to a third party pursuant to an 3
order issued by a court of competent jurisdiction; 4
(k) Publishing administrative writings on its official website in accordance with 5
KRS 131.020(1)(b); or 6
(l) Providing information to the Legislative Research Commission under: 7
1. KRS 139.519 for purposes of the sales and use tax refund on bui lding 8
materials used for disaster recovery; 9
2. KRS 141.436 for purposes of the energy efficiency products credits; 10
3. KRS 141.437 for purposes of the ENERGY STAR home and the 11
ENERGY STAR manufactured home credits; 12
4. KRS 141.383 for purposes of the film industry incentives; 13
5. KRS 154.26-095 for purposes of the Kentucky industrial revitalization 14
credit and the job assessment fees; 15
6. KRS 141.068 for purposes of the Kentucky investment fund; 16
7. KRS 141.396 for purposes of the angel investor credit; 17
8. KRS 141.389 for purposes of the distilled spirits credit; 18
9. KRS 141.408 for purposes of the inventory credit; 19
10. KRS 141.390 for purposes of the recycling and composting credits; 20
11. KRS 141.3841 for purposes of the selling farmer credit; 21
12. KRS 141.4231 for purposes of the renewable chemical production 22
credit; 23
13. KRS 141.524 for purposes of the Education Opportunity Account 24
Program credit; 25
14. KRS 141.398 for purposes of the development area credit; 26
15. KRS 139.516 for purposes of the sales and use tax exemptions for the 27
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commercial mining of cryptocurrency; 1
16. KRS 141.419 for purposes of the decontamination credit; 2
17. KRS 141.391 for purposes of the qualified broadband investment credit; 3
18. KRS 139.499 for purposes of the sales and use tax exemptions for a 4
qualified data center project; and 5
19. KRS 139.5325 for purposes of the sales and use tax incentive for a 6
qualifying attraction. 7
(3) The commissioner shall make available any information for official use only and on 8
a confidential basis to the proper officer, agency, board or commission of this state, 9
any Kentucky county, any Kentucky city, any other state, or the federal 10
government, under reciprocal agreements whereby the departm ent shall receive 11
similar or useful information in return. 12
(4) Access to and inspection of information received from the Internal Revenue Service 13
is for department use only, and is restricted to tax administration purposes. 14
Information received from the Internal Revenue Service shall not be made available 15
to any other agency of state government, or any county, city, or other state, and 16
shall not be inspected intentionally and without authorization by any present 17
secretary or employee of the Finance and Admi nistration Cabinet, commissioner or 18
employee of the department, or any other person. 19
(5) Statistics of crude oil as reported to the department under the crude oil excise tax 20
requirements of KRS Chapter 137 and statistics of natural gas production as 21
reported to the department under the natural resources severance tax requirements 22
of KRS Chapter 143A may be made public by the department by release to the 23
Energy and Environment Cabinet, Department for Natural Resources. 24
(6) Notwithstanding any provision of la w to the contrary, beginning with mine -map 25
submissions for the 1989 tax year, the department may make public or divulge only 26
those portions of mine maps submitted by taxpayers to the department pursuant to 27
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KRS Chapter 132 for ad valorem tax purposes that d epict the boundaries of mined -1
out parcel areas. These electronic maps shall not be relied upon to determine actual 2
boundaries of mined-out parcel areas. Property boundaries contained in mine maps 3
required under KRS Chapters 350 and 352 shall not be constru ed to constitute land 4
surveying or boundary surveys as defined by KRS 322.010 and any administrative 5
regulations promulgated thereto. 6
Section 54. (1) The General Assembly finds that: 7
(a) The long-term viability, genetic diversity, and soundness of the Thoroughbred 8
industry are matters of substantial economic and cultural importance to the 9
Commonwealth of Kentucky; and 10
(b) Advances in genomic science and data analysis present an opportunity to 11
better understand breeding practices and their impacts on equine health, performance, and 12
sustainability. 13
(2) The Jockey Club, Thoroughbred breeders of varying sizes located within and 14
outside the Commonwealth of Kentucky, and recognized international stud book 15
authorities, including but not limited to entities responsible for maintaining international 16
Thoroughbred registries, shall collaborate with and engage with each other to consider 17
matters as set forth in this section. 18
(3) The scope shall include: 19
(a) Genomic surveillance within the Thoroughbred breeding industry, including 20
the identification of heritable conditions, soundness issues, and other genetic risk factors, 21
if any; 22
(b) The extent to which current breeding practices, including the concentration of 23
breeding among high -demand stallions, may impact genetic diversity, durability, and 24
overall herd health; 25
(c) Data derived from domestic and international stud books, breeding registries, 26
veterinary research, and academic studies relevant to equine genetics and breeding 27
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outcomes; 1
(d) Whether industry conditions warrant consideration of limitations or caps on 2
the number of mares to which a single stallion may be bred during a breeding season, and 3
the potential economic, legal, and international implications of any such limitations; and 4
(e) Best practices from other jurisdictions, breeds, or international models 5
regarding genetic management and breeding limits. 6
(4) The effort shall: 7
(a) Include input from breeders of varying sizes, owners, veterinarians, 8
geneticists, academic researchers, and industry stakeholders; 9
(b) Provide for consultation with international organizations responsible for 10
Thoroughbred registry standards and stud book harmonization; and 11
(c) Be conducted in a manner that ensures data integrity, confidentiality where 12
appropriate, and transparency of methodology. 13
(5) This section shall not be construed to require the adoption of genomic 14
surveillance measures or the imposition of breeding caps, but rather to ensure a 15
comprehensive consideration of both the attributes and limitations associated with such 16
measures. 17
(6) On or before December 1, 2026, the parties shall submit a written report to the 18
Interim Joint Committee on Licensing, Occupations, and Administrative Regulations to 19
include: 20
(a) Factors considered as part of the effort; 21
(b) The feasibility and advisability of genomic surveillance; 22
(c) Analysis of the potential need for, and impacts of, any cap on stallion 23
breeding; and 24
(d) Recommendations for legislative or regulatory action, if any. 25
Section 55. If any provisio n of this Act or the application thereof to any person 26
or circumstance is held invalid, the invalidity shall not affect other provisions or 27
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applications of the Act that can be given effect without the invalid provision or 1
application, and to this end the provisions of this Act are severable. 2
Section 56. Sections 1 to 49 of this Act may be cited as the Wagering Consumer 3
Protection Act. 4