‘Perfect timing’: Kentucky rakes in more than expected from sports betting

FRANKFORT, Ky. (FOX 56) — When Kentucky lawmakers were debating whether sports betting would be legalized this year, they didn’t expect this much money to come in.

“It’s an incredible start. And if it continues, we will significantly exceed the $23 million in projected revenue from sports wagering,” said Gov. Andy Beshear Thursday.

With more than $656 million wagered, about $8 million has gone straight to the state in taxes in just two months. John Cox, public affairs director at the Kentucky Chamber of Commerce, said it was perfect timing when betting launched.

“Football season going on and the NBA, college basketball, college football, NFL hockey, even. I mean, I think that having that volume of sports when you kick it off is obviously going to be responsible for somewhat of an uptick,” Cox said.

It’s momentum that’s likely to continue into March Madness, with many expecting tax revenue to outpace the $23 million the state was expecting to generate. However, Cox said there are other reasons for that beyond popularity.

“That data was, you know, projected before COVID. So, you know, I think inflation could have something to do with the numbers a little bit,” Cox said.

Cox is looking to similar-sized states to compare their tax revenue to ours. He pointed to Louisiana generating $32 million in taxes so far this year and expecting to hit $40 million. While Kentucky might not make that much in the first year, it will help out the state’s underfunded pensions, where the majority of this tax money is being spent.

“It’s just going to be putting more money towards a problem that has been ongoing in this state,” Cox said.

Beshear said next week the Horse Racing Commission will be making monthly reports available on wagering and tax revenue. He said right now, Kentucky is averaging $65 million in bets a week.