Kentucky Governor Andy Beshear has chosen to veto House Bill 904, which looks to prohibit operators currently licensed in state from offering event contract trading and regulate peer-to-peer daily fantasy sports (DFS).
HB 904 would also raise the minimum legal sports betting age in Kentucky from 18 to 21, legalize fixed-odds horse racing, tax peer-to-peer DFS operators at a 12% rate, ban “under” player prop bets for in-state collegiate athletes and prohibit wagers on elections.
“I am vetoing House Bill 904 because it would authorize two agencies, the Kentucky Lottery Corporation and Kentucky Horse Racing and Gaming Corporation, to file emergency and ordinary administrative regulations without the Governor’s review and signature,” Beshear said.
“Authorizing an agency to file an emergency regulation in this manner would prevent the Governor from carrying out his constitutional duties and allow boards and agencies to impose rules on Kentuckians without executive oversight, including boards whose decisions impact public safety.”
Despite the rejection from Beshear, Kentucky lawmakers could overrule his veto if a certain majority of members from both the House of Representatives and state Senate vote to pass the legislation without Governor approval.
The legislation was brought forth by Representatives Michael Meredith and Matthew Koch, originally passing the House on March 19 and the Kentucky Senate at the beginning of April 2026.
HB 904 would have originally prohibited all Kentucky-licensed operators – including sportsbooks, racetracks and DFS – from operating or affiliating with a federally regulated exchange which offers events contracts in the US.
The legislation was eventually modified to only ban prediction market operations within Kentucky, as the original language could have invalidated the licenses of FanDuel, DraftKings and Fanatics, as well as prohibited Underdog and PrizePicks from applying for a DFS license.
On April 13, Councilmember Wendell Felder introduced legislation aimed at legalizing online casino gambling in Washington DC and prohibiting unlicensed sweepstakes operators utilizing a dual-currency payment system.
The Internet Gaming and Consumer Protection Act would put online casino gambling under the regulatory authority of the Office of Lottery and Gaming, which can also issue operator and supplier licenses under Felder’s legislation.
Mary Harville announced her upcoming retirement from the Kentucky Lottery during November 2025, marking the end of a 22-year career which included senior roles in legal, governance and executive leadership
