KRS 230.260: Authority and jurisdiction of Kentucky Horse Racing and Gaming

Corporation -- Administrative regulations -- Problem or compulsive gamblers

-- Conduct of sports wagering and charitable gaming.

The corporation shall have all powers necessary and proper to carry out and effectuate the

purposes and provisions of this chapter on and after July 1, 2024, and the purposes and

provisions of KRS Chapter 238 on and after July 1, 2025, including but not limited to the

following:

(1) The corporat ion is vested with jurisdiction and supervision over all live horse

racing, pari -mutuel wagering, sports wagering, fantasy contests, fixed -odds

wagering, breed integrity and development, and on and after July 1, 2025,

charitable gaming, except for lottery games authorized under KRS Chapter 154A,

in this Commonwealth and over all associations and all persons on association

grounds and may eject or exclude therefrom or any part thereof, any person,

licensed or unlicensed, whose conduct or reputation is such t hat the person's

presence on association grounds may, in the opinion of the corporation, negatively

reflect on the honesty and integrity of horse racing, or on sporting events upon

which sports wagers may be placed, or interfere with the orderly conduct of horse

racing or racing at horse race meetings, but no persons shall be excluded or ejected

from association grounds solely on the ground of race, color, creed, national origin,

ancestry, or sex;

(2) The corporation is vested with jurisdiction over any per son or entity that offers

advance deposit account wagering to Kentucky residents. Any such person or entity

under the jurisdiction of the corporation shall be licensed by the corporation, and

the corporation may impose a license fee not to exceed ten thous and dollars

($10,000) annually. The corporation may, by administrative regulation promulgated

in accordance with KRS Chapter 13A, establish conditions and procedures for the

licensing of advance deposit account wagering providers to include but not be

limited to:

(a) A fee schedule for applications for licensure; and

(b) Reporting requirements to include quarterly reporting on:

1. The amount wagered on Kentucky races; and

2. The total amount wagered by Kentuckians;

(3) The corporation is vested with jurisdi ction over any totalizator company that

provides totalizator services to a racing association located in the Commonwealth.

A totalizator company under the jurisdiction of the corporation shall be licensed by

the corporation, regardless of whether a totaliz ator company is located in the

Commonwealth or operates from a location or locations outside of the

Commonwealth, and the corporation may impose a license fee on a totalizator

company. The corporation may, by administrative regulation promulgated in

accordance with KRS Chapter 13A, establish conditions and procedures for the

licensing of totalizator companies, and a fee schedule for applications for licensure;

(4) The corporation is vested with jurisdiction over any manufacturer, wholesaler,

distributor, or vendor of any equine drug, medication, therapeutic substance, or

metabolic derivative which is purchased by or delivered to a licensee or other

person participat ing in Kentucky horse racing by means of the internet, mail

delivery, in-person delivery, or other means;

(5) The corporation is vested with jurisdiction over any horse training center or facility

in the Commonwealth that records official timed workouts for publication;

(6) The corporation may require an applicant for a license under subsection (2) or (3) of

this section to submit to a background check of the applicant, or of any individual

or organization associated with the applicant. An applicant shall b e required to

reimburse the corporation for the cost of any background check conducted;

(7) The corporation, its representatives and employees, may visit, investigate, and have

free access to the office, track, facilities, or other places of business of an y licensee,

or any person owning a horse or performing services regulated by this chapter on a

horse registered to participate in a breeders incentive fund under the jurisdiction of

the corporation;

(8) The corporation may prescribe necessary and reasonabl e administrative regulations

and conditions under which horse racing at a horse race meeting shall be conducted

in this state and to fix and regulate the minimum amount of purses, stakes, or

awards to be offered for the conduct of any horse race meeting;

(9) Applications for licenses may be made in the form and manner and contain

information as required by the corporation through the promulgation of

administrative regulations. Fees for all licenses issued under KRS 230.310 shall be

prescribed by and paid to the corporation;

(10) The corporation may establish by administrative regulation minimum fees for

jockeys to be effective in the absence of a contract between an employing owner or

trainer and a jockey. The minimum fees shall be no less than those of July 1, 1985;

(11) The corporation may refuse to issue or renew a license, revoke or suspend a license,

impose probationary conditions on a license, issue a written reprimand or

admonishment, impose fines or penalties, deny purse money, require the forfeiture

of purse money, or any combination thereof with regard to a licensee or other

person participating in Kentucky horse racing for violation of any federal or state

statute, regulation, or steward's or corporation's directive, ruling, or order to

preserve the integrity of Kentucky horse racing or to protect the racing public. The

corporation may, by administrative regulation, establish the criteria for taking the

actions described in this subsection;

(12) The corporation may issue subpoenas for the attendance of witnesses before it and

for the production of documents, records, papers, books, supplies, devices,

equipment, and all other instrumentalities related to live horse racing, pari -mutuel

wagering, sports wagering, fantasy contests, fixed -odds wagering, br eed integrity

and development, and on and after July 1, 2025, charitable gaming, within the

Commonwealth. The corporation may administer oaths to witnesses and require

witnesses to testify under oath whenever, in the judgment of the corporation, it is

necessary to do so for the effectual discharge of its duties;

(13) The corporation shall have authority to compel any racing association licensed

under this chapter to file with the corporation at the end of its fiscal year, a balance

sheet, showing assets and liabilities, and an earnings statement, together with a list

of its stockholders or other persons holding a beneficial interest in the association;

(14) The corporation may promulgate administrative regulations establishing safety

standards for jockeys, w hich shall include the use of rib protection equipment. Rib

protection equipment shall not be included in a jockey's weight;

(15) (a) The corporation shall promulgate administrative regulations in accordance

with KRS Chapter 13A to establish:

1. A self-exclusion list for individuals who self -identify as being problem

or compulsive gamblers;

2. A process for compilation and maintenance of the self-exclusion list;

3. A process for dissemination of the self-exclusion list; and

4. A process for notifying the pu blic of the methods an individual may use

to self-identify.

(b) Self-exclusion information collected by each required licensee shall be

forwarded to the corporation.

(c) Pursuant to KRS 61.878(1)(a), information collected under this subsection

shall be excluded from the application of KRS 61.870 to 61.884;

(16) (a) The corporation may promulgate administrative regulations to establish

standards for the conduct of sports wagering, including standards for

receiving and paying out wagers, offering sports wager ing through a website

or mobile application, maintaining and auditing books and financial records,

securely maintaining records of bets and wagers, integrity requirements for

sports wagering and related data, suitability requirements for providers of

associated equipment, geofence standards for wager placement, designated

areas for sports wagering, surveillance and monitoring systems, and other

reasonable technical criteria related to conducting sports wagering.

(b) The corporation may promulgate administra tive regulations related to age

requirements for placing sports wagers, availability of information related to

sports wagers, and licensing requirements, including temporary

authorizations, for service providers, vendors, and suppliers; and

(17) (a) On and after July 1, 2025, the corporation is vested with jurisdiction and

supervision over all charitable gaming and may promulgate administrative

regulations to establish standards for the conduct of charitable gaming

consistent with the guidelines established in this chapter and KRS Chapter

238. The corporation may eject or exclude therefrom or any part thereof, any

person, licensed or unlicensed, whose conduct or reputation is such that the

person's presence at a charitable gaming facility may, in the opinion of the

corporation, negatively reflect on the honesty and integrity of charitable

gaming, or interfere with the orderly conduct of charitable gaming at a

charitable gaming facility, but no persons shall be excluded or ejected from a

charitable gaming faci lity solely on the ground of race, color, creed, national

origin, ancestry, or sex.

(b) The administrative regulations of the Kentucky Horse Racing Commission

that are in effect on July 1, 2024, shall remain in effect as the initial

administrative regulations of the corporation until the corporation amends or

repeals the administrative regulations pursuant to KRS Chapter 13A, except

as provided by KRS 13A.3102, 13A.3104, and 13A.330.

(c) The administrative regulations of the Department of Charitable Gaming that

are in effect on July 1, 2025, shall remain in effect as the initial administrative

regulations of the corporation until the corporation amends or repeals the

administrative regulations pursuant to KRS Chapter 13A, except as provided

by KRS 13A.3102, 13A.3104, and 13A.330.