KRS 230.805: Racing and gaming corporation to institute system of sports wagering --

Service providers -- Requirements -- Sports wagering account registration --

Limitation on accounts -- Administrative regulations.

(1) The corporation shall ins titute a system of sports wagering in conformance with

federal law, this chapter, and by administrative regulations promulgated under the

authority of KRS 230.215.

(2) Sports wagering shall not be offered in this state except as authorized by this

section and KRS 230.811. A track that holds a license to operate sports wagering

may contract with sports wagering service providers to conduct or manage sports

wagering operations as authorized by this chapter. Sports wagering may be

provided at a licensed facili ty for sports wagering or online through a website or

mobile application. The licensed facility for sports wagering or a sports wagering

service provider may provide sports wagering through a website or mobile interface

as approved by the corporation. The corporation may provide temporary licenses to

licensed facilities for sports wagering or sports wagering service providers, if the

corporation deems that the information submitted by them is sufficient to determine

the applicant's suitability. The corporat ion may promulgate administrative

regulations to establish the suitability for temporary and ordinary license

applications for licensed facilities for sports wagering, sports wagering service

providers, and any related parties.

(3) Sports wagering licensee s and service providers that accept wagers online via

websites and mobile applications shall impose the following requirements:

(a) Prior to placing a wager online via websites or mobile applications operated

by either a sports wagering licensee or a servi ce provider, a patron shall

register the patron's sports wagering account with the operating sports

wagering licensee or service provider either in person at a licensed facility for

sports wagering or remotely through the service provider's website or mobi le

application;

(b) 1. The registration process shall include attestation that the patron meets

the requirements to place a wager with a sports wagering licensee or

service provider in this state.

2. Prior to verification of a patron's identity, a sports w agering licensee or

service provider shall not allow the patron to engage in sports wagering,

make a deposit, or process a withdrawal via the patron's sports wagering

account.

3. A sports wagering licensee or service provider shall implement

commercially a nd technologically reasonable procedures to prevent

access to sports wagering by any person under the age of twenty -one

(21):

a. At a licensed facility; and

b. Online via website or mobile application.

4. A sports wagering licensee or service provider may use information

obtained from third parties to verify that a person is authorized to open

an account, place wagers, and make deposits and withdrawals;

(c) A sports wagering licensee or service provider sha ll adopt an account

registration policy to ensure that all patrons are authorized to place a wager

with a sports wagering licensee or service provider within the Commonwealth

of Kentucky. This policy shall include, without limitation, a mechanism by

which to:

1. Verify the name and age of the patron;

2. Verify that the patron is not prohibited from placing a wager; and

3. Obtain the following information:

a. A physical address other than a post office box;

b. A phone number;

c. A unique user name; and

d. An email account;

(d) A sports wagering licensee or service provider shall use all commercially and

technologically reasonable means to ensure that each patron is limited to one

(1) account with that service provider in the Commonwealth, but nothing in

this paragraph restricts a patron from holding other sports wagering accounts

in other jurisdictions;

(e) A sports wagering licensee or service provider, in addition to complying with

state and federal law pertaining to the protection of the private, personal

information of patrons, shall use all other commercially and technologically

reasonable means to protect this information consistent with industry

standards;

(f) A sports wagering licensee or service provider shall use all commercially and

technologically reasonable means to verify the identity of the patron making a

deposit or withdrawal;

(g) A sports wagering licensee or service provider shall utilize geolocation or

geofencing technology to ensure that wagers are only accepted from patrons

who are physically located in the Commonwealth. A sports wagering licensee

or service provider shall maintain in this state its servers used to transmit

information for purposes of accepting or paying out wagers on a sporting

event placed by patrons in this state;

(h) A patron may fund the patron's account using any acceptable form of payment

or advance deposit method, which shall include the use of cash, cash

equivalents, credit cards, debit cards, automated clearing house, other

electronic methods, and any other form of payment authorized by the

corporation; and

(i) The corporation may enter into agreements with other jurisdictions or entities

to facilitate, administer, and regulate multijurisdictional sports betting by

sports betting operators to the extent that entering into the agreement is

consistent with state and federal laws and the sports betting agreement is

conducted only in the United States.

(4) A track may contract with no more than three (3) service providers at a time to

conduct and manage services and techn ology which support the operation of sports

betting both on the track and online via websites and mobile applications. The

website or mobile application used to offer sports betting shall be offered only

under the same brand as the track or that of the ser vice provider contracted with the

track, or both.

(5) (a) A track or service provider through an agreement with a licensed track shall

not offer sports wagering until the corporation has issued a sports wagering

license to the track, except for temporary l icenses authorized under KRS

230.814.

(b) A track or association, or service provider through an agreement with a

licensed track, shall not offer fixed -odds wagering until the corporation has

issued a supplemental fixed-odds wagering license to the track.

(6) (a) A track licensed under KRS 230.811 may offer sports wagering at a facility

that meets the definition of "track" in KRS 230.210.

(b) A simulcast facility may offer sports wagering through an agreement with a

track by using any of that track's already established service providers.

(7) (a) As used in this subsection, "minimum bet limit":

1. Means the amount a bettor can win, not how much can be staked or

collected; and

2. Includes that the minimum bet limit must be accepted by bookmakers on

all fixed-odds wagers.

(b) A track or association licensed under this chapter may conduct fixed -odds

wagering on horse racing with or without a service provider.

(c) A track or association or service provider licensed under this chapter shall

have a mandatory minimum bet limit of at least one thousand dollars ($1,000)

per race.

(d) The betting menu shall be determined by the host track.

(8) (a) As used in this subsecti on, "proposition bet" means a wager on the

performance statistics of an individual athlete.

(b) A sports wagering licensee or service provider shall not offer or accept any

proposition bets on an individual performance statistic on athletes

participating i n collegiate sporting events for a collegiate team located in

Kentucky if the successful outcome of the wager is contingent upon the

athlete failing to meet a specified statistical threshold or experiencing a

negative performance outcome.

(9) (a) As used in this subsection:

1. "Affiliate" means an entity that is owned or controlled in whole or in

part by the licensee; and

2. "Beneficial interest" means participation in the proceeds of prediction

markets or events contracts either as a licensee or operator o f the

proceeds or an entity that receives prediction market or events contracts

proceeds in any capacity.

(b) A track or association that holds a license to conduct horse racing, sports

wagering, or a licensee offering fantasy contests under this chapter o r its

affiliate shall not participate in or contract with platforms that offer events

contracts through a prediction market in the Commonwealth of Kentucky or

have a beneficial interest in the proceeds of prediction markets in the

Commonwealth of Kentucky.

(c) A track or association licensed to conduct horse racing, sports wagering, or a

licensee offering fantasy contests under this chapter or its affiliate or an entity

in which it has a beneficial interest shall not contract with a licensed sports

wagering service provider that:

1. Offers sports events contracts through a prediction market in the

Commonwealth of Kentucky; or

2. Owns, rents, licenses, advertises, operates, is partnered or affiliated

with, or has a beneficial interest in, an entity that makes available to its

users in any form a sports prediction market in the Commonwealth of

Kentucky.

(d) A track or association licensed to conduct horse racing, sports wagering, or a

licensee offering fantasy contests under this chapter, its affiliate, or an e ntity

in which it has a beneficial interest shall not contract with an entity offering

sports event contracts or a sports prediction market in Kentucky.

(e) Notwithstanding paragraphs (b) to (d) of this subsection, a track or association

licensed to conduc t horse racing, sports wagering, or a licensee offering

fantasy contests under this chapter found to have violated this section shall

have twelve (12) months to cure the violation without any additional penalty

imposed by the corporation. If the violation is not cured within twelve (12)

months of the violation, the corporation may take administrative action.

(10) Notwithstanding subsection (9) of this section, this chapter shall not prohibit the

corporation or the Department of Revenue from promulgating adm inistrative

regulations in accordance with KRS Chapter 13A to regulate the conduct or activity

of prediction markets in the Commonwealth in accordance with applicable federal

law.

(11) If a track or association holds two (2) or more licenses, only the spec ific license or

licensee for which the track or association has violated the terms shall be subject to

suspension or revocation or the applicable penalties.

(12) Nothing in this section shall be construed to prevent a licensed sports wagering

service provider or a track or association licensed to conduct horse racing or sports

wagering or a licensee offering fantasy contests under this chapter from offering

advance deposit account wagering as defined in KRS 230.210.