{"data":{"id":"us-ky/krs-138.552","jurisdiction":"us-ky","citation":"KRS 138.552","heading":"Definitions -- Taxes on sports wagering and fixed-odds wagering licensees -","body":"- Reporting requirements.\n(1) As used in this section:\n(a) \"Adjusted gross fixed-odds wagering revenue\" means the total sum of wagers\ncollected on all fixed-odds wagers on live horse racing and all combination of\nbets of multiple individual wagers into one (1) bet that includes one (1) or\nmore fixed -odds wagers on live horse racing, less winnings paid to\nparticipants in the contest and all excise taxes paid pursuant to federal law;\n(b) \"Adjusted gross sports wagering revenue\" means the total sum of wagers\ncollected on all sporting events, except any combination of bets of multiple\nindividual wagers into one (1) bet that includes one (1) or more fixed -odds\nwagers on l ive horse racing, less winnings paid to participants in the contest\nand all excise taxes paid pursuant to federal law;\n(c) \"Department\" means Department of Revenue;\n(d) \"Fixed-odds wagering\" has the same meaning as in KRS 230.210;\n(e) \"Sporting event\" means an event at which two (2) or more persons participate\nin athletic contests or an event that takes place in relation to athletic contests\nas approved by the corporation, but shall not include horse racing or amateur\nyouth sports or athletic events in whic h the majority of participants are under\nthe age of eighteen (18) years;\n(f) \"Sports wagering\" means the wagering conducted under KRS Chapter 230 on\nsporting events or portions of sporting events, or on the individual\nperformance statistics of athletes in a sporting event or combination of\nsporting events, in conformance with federal law and as authorized by the\ncorporation pursuant to KRS Chapter 230; and\n(g) \"Taxpayer\" means any person liable for tax under this section.\n(2) An excise tax is imposed on per sons licensed under KRS 230.811 and 230.814 to\nconduct:\n(a) Sports wagering at a rate of:\n1. Nine and three -quarters percent (9.75%) on the adjusted gross sports\nwagering revenue on wagers placed at the licensed track; and\n2. Fourteen and one-quarter percent (14.25%) on the adjusted gross sports\nwagering revenue on wagers placed online via website s or mobile\napplications or other off -site technology approved by the Kentucky\nHorse Racing and Gaming Corporation; and\n(b) Fixed-odds wagering at a rate of:\n1. Nine and three -quarters percent (9.75%) on the adjusted gross fixed -\nodds wagering revenue of fixed-odds wagers on live horse racing placed\nat the licensed track; and\n2. Fourteen and one-quarter percent (14.25%) on the adjusted gross fixed -\nodds wagering revenue of fixed-odds wagers on live horse racing placed\nonline via websites or mobile application s or other off -site technology\napproved by the Kentucky Horse Racing and Gaming Corporation.\n(3) The excise taxes imposed in:\n(a) Subsection (2)(a) of this section shall be transferred to the sports wagering\nadministration fund established in KRS 230.817 a nd appropriated for the\npurposes established in that section; and\n(b) Subsection (2)(b) of this section shall be transferred to the purse stabilization\nfund established in KRS 230.850 and appropriated for the purposes\nestablished in that section.\n(4) The department shall enforce the provisions of and collect the taxes and penalties\nimposed in this section, and in doing so it shall have the general powers and duties\ngranted it in KRS Chapters 131 and 135, including the power to enforce, by an\naction in the Franklin Circuit Court, the collection of the taxes, penalties, and other\npayments imposed or required by this section.\n(5) The tax imposed by this section is due and payable to the department monthly and\nshall be remitted on or before the twentieth day of the next succeeding calendar\nmonth. If a taxpayer's adjusted gross revenue for a month is a negative number, the\ntaxpayer may carry over the negative amount to the return filed for the subsequent\nmonth. However, no amount shall be carried over in any perio d more than twelve\n(12) months after the month in which the amount carried over was originally due.\n(6) (a) Payment shall be accompanied by a return prescribed by the department.\n(b) For sports wagering only, the return form shall report, at a minimum:\n1. The total sum of wagers collected in person and electronically through a\nmobile application;\n2. Winnings paid in person and electronically through a mobile\napplication;\n3. Adjusted gross revenue in person and electronically through a mobile\napplication;\n4. Tax rates applied to adjusted gross revenue in person and electronically\nthrough a mobile application;\n5. The tax due from adjusted gross revenues in person and electronically\nthrough a mobile application;\n6. Federal excise taxes paid; and\n7. The total wagering tax due.\n(7) Wagering taxes due and payable in accordance with this section shall be paid via\nelectronic funds transfer. The taxpayer shall provide the department with all\nprotocol documentation and electronic funds transfer data necessary to facili tate the\ntimely transfer of funds.\n(8) Any taxpayer who violates any provision of this section shall be subject to the\nuniform civil penalties imposed pursuant to KRS 131.180 and interest at the tax\ninterest rate as defined in KRS 131.010(6).\n(9) The Kentu cky Horse Racing and Gaming Corporation may suspend, revoke, or\ndecline to renew a license upon the taxpayer's failure to timely submit payment of\ntaxes due under this section or the administrative regulations promulgated by the\ndepartment.\n(10) The taxes imposed by this section shall be in lieu of all other state and local taxes\nand fees imposed on the operation of, or the proceeds from, the operation of sports\nwagering.","path":["KRS Chapter 138"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58101","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:30Z","sha256":"64d0d9b6cde94f305501f1b1c8c96a72169f4fe2e6241a7ddbab66055dad9e39","source_id":"us-ky","stale":false,"prev":"us-ky/krs-138.550","next":"us-ky/krs-138.553"},"notice":"GroundRules: Original legal text. Not legal advice."}