{"data":{"id":"us-ky/krs-138.505","jurisdiction":"us-ky","citation":"KRS 138.505","heading":"Fantasy contest tax -- Definitions for section.  (Effective January 1, 2027)","body":"(1) As used in this section:\n(a) \"Adjusted gross fantasy contest receipts\" means the total sum of entry fees\ncollected by a fantasy contest service provider from all fan tasy contest\nparticipants entering a fantasy contest, less winnings paid to fantasy contest\nparticipants in the contest;\n(b) \"Athlete\":\n1. Means a professional or amateur competitor in a real -world lawful\nsporting event or an organized video game competition that is:\na. Regulated by a sports governing body; and\nb. Held between players who play individually or as a team; and\n2. Includes equine competitors;\n(c) \"Department\" means the Department of Revenue;\n(d) \"Fantasy contest\":\n1. Means any online fantasy or simulated game or contest that meets the\nfollowing conditions:\na. There are no fewer than two (2) fantasy contest participants;\ni. All fantasy contest participants are natural persons; and\nii. A fantasy contest service provider shall not be construed to\nbe a participant;\nb. i. The values of all prizes offered to winning fantasy contest\nparticipants are established and made known to fantasy\ncontest participants in advance of the contest;\nii. Multiple winning participants may share a prize; and\niii. Prizes may consist of fixed amounts, tiered payouts, or other\nconditional bonus payouts, provided that all prize structures\nare disclosed in advance by the fantasy contest service\nprovider;\nc. All winning outcomes reflect the relative kn owledge and skill of\nthe fantasy contest participant and are determined predominantly\nby the accumulated statistical performance or finishing position of\nmultiple athletes across one (1) or more real -world sporting\nevents;\nd. Fantasy contest participants a ssemble a fictional entry or roster of\nactual athletes and exercise management or selection control over\nthe roster;\ne. Fantasy contest participants compete for prizes awarded by a\nfantasy contest service provider based on terms and conditions\npublished by the fantasy contest service provider and made known\nto the fantasy contest participant in advance of the contest;\nf. Winning outcomes are determined by clearly established scoring\ncriteria based on one (1) or more statistical results of the\nperformance of an individual athlete, including but not limited to a\nfantasy score;\ng. A winning outcome is not based:\ni. On the score, point spread, or outcome of a single real -world\nteam or combination of teams; or\nii. Solely on any single performance of an individual  athlete or\nparticipant in any single actual event; and\nh. The game or contest does not violate any provision of federal law;\n2. Includes contests in which fantasy contest participants compete against\neach other; and\n3. Does not include any fantasy contest:\na. Without a fantasy contest entry fee; or\nb. Betting against the fantasy contest service provider;\n(e) \"Fantasy contest entry fee\" means the cash or cash equivalent that is required\nto be paid by a fantasy contest participant in advance to a fantasy con test\nservice provider in order to participate in a fantasy contest;\n(f) \"Fantasy contest participant\" means a person who is twenty -one (21) years of\nage or older who is:\n1. Kentucky resident who participates in a fantasy contest offered by a\nfantasy contest service provider; and\n2. Not a Kentucky resident who participates in a fantasy contest offered by\na fantasy contest service provider while in Kentucky; and\n(g) \"Fantasy contest service provider\":\n1. Means a person or entity that offers fantasy contests to the general\npublic; and\n2. Does not include an internet service provider or a provider of mobile\ndata services merely as a result of that provider's transporting of general\ntraffic that may include a fantasy contest.\n(2) Beginning on January 1, 2027, the Commonwealth shall impose and collect a tax at\na rate of twelve percent (12%) of the fantasy contest service provider's adjusted\ngross fantasy contest receipts. The accrual method of accounting shall be used for\npurposes of calculating the amount of tax owed by the licensee.\n(3) The tax imposed by subsection (2) of this section is due and payable monthly and\nshall be remitted to the department on or before the twentieth day of the next\nsucceeding calendar month.\n(4) The fantasy contest service provider's payment shall be accompanied by a return\nprescribed by the department indicating the amount of tax due for the previous\ncalendar month as well as any other information the department shall require\nthrough an administrative regulation promulgated in accordance with KRS Chapter\n13A.\n(5) Any fantasy contest service provider who violates any provision of this section shall\nbe subject to the uniform civil penalties imposed under KRS 131.180.\n(6) In every case, any tax not paid on or before the due date shall bear interest at the tax\ninterest rate as defined in KRS 131.010 from the due date until the date of payment.","path":["KRS Chapter 138"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58269","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:30Z","sha256":"07ad94fd4c0a88ee9af18e730caeff4804e4ed77daa8b350dbf931b511f4a06b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-138.502","next":"us-ky/krs-138.506"},"notice":"GroundRules: Original legal text. Not legal advice."}