HB 904: AN ACT relating to gaming.
Amend KRS 230.210 to define various terms; create new sections of KRS Chapter 230 to authorize the Kentucky Horse Racing and Gaming Corporation to regulate the conduct of fantasy contest operators; require the use of geolocation technology; require fantasy contest operators to implement procedures to prevent fraud, abuse, and money laundering; require notification to the corporation for a confirmed breach of a sport's governing body's internal rules and codes of conduct, conduct that corrupts any outcome, and confirmed illegal activities; establish licensing requirements for a fantasy contest operator; allow the corporation to promulgate administrative regulations to establish additional qualifications and requirements for licensing to preserve the integrity and security of fantasy contests; prohibit a license from being issued to a person that has been convicted of a felony, crime involving illegal gaming or gambling, or any crime involving theft or fraud; require a fantasy contest operator to conduct an independent audit; require a fantasy contest operator to be at least 21 years old; require the corporation to investigate all reasonable allegations of prohibited conduct; require each fantasy contest operator to include a statement regarding obtaining assistance with real-money gaming problems on the operator's website or mobile application; prohibit a fantasy contest operator from paying any price or award to a person who is on the self-exclusion list; create a new section of KRS Chapter 230 to establish the purse stabilization fund from fixed-odds wagers on horse racing taxes and fees; amend KRS 138.552 to define "fixed-odds wagering"; impose a 15% excise tax on the adjusted gross revenue of fixed-odds wagers on live horse racing; amend various sections of KRS Chapter 230 to establish the corporation's jurisdiction over fantasy contests and fixed-odds wagering; establish the Attorney General's concurrent jurisdiction with the Commonwealth's attorneys and county attorneys of this state for the enforcement of KRS Chapter 230 and 238; require the corporation to establish a process for the compilation, dissemination, and notification of the self-exclusion list; allow the corporation to authorize additional racing dates or amend racing dates; define "affiliate" and "beneficial interest"; prohibit an association or track or its affiliate from holding a license to conduct charitable gaming; require associations and tracks to accelerate the adoption of technologies, update the totalizator by April 1, 2027, and update technologies related to pari-mutuel wagering annually; require associations and tracks to disable all wagering simultaneously, but not later than the moment the starting gate is opened for commencement of a race; change the age of access to sports wagering from 18 to 21; allow a track to conduct fixed-odds wagering on horse racing; require a track or service provider to have a mandatory minimum hold of at least $2,000 per race; define "proposition bet"; prohibit sports wagering licensees and service providers from offering any proposition bets on individual players participating in collegiate sporting events; prohibit a track or association from participating in or contracting with platforms that offer events contracts through prediction markets; prohibit a track or association from contracting with a service provider that offers events contracts through a prediction market; amend various sections of KRS Chapter 238 to redefine "chairperson" and "charitable gaming facility"; define "licensed charitable gaming facility"; establish the power of the office relating to licensure issuance and renewal and imposing fines and penalties; require a background check for any person associated with an applicant if the corporation deems it necessary; change the distributor and manufacturer licensing fee from $1,000 to $5,000; change the charitable organization's licensing fee from $300 to $1,000; require an applicant to submit an application at least 60 days prior to the expiration of its existing license or its first expected date of operation; prohibit a person under the age of 21 from participating in the play of charitable gaming activities or events; increase the limit for a prize for an individual charity game ticket from $599 to $1,499; establish an affirmative defense for any prosecution for selling charitable gaming supplies to a minor if the sale was induced by the use of false identification; change the charitable gaming facility licensing fee from $2,500 to $5,000; prohibit an owner or affiliate of a licensed charitable gaming facility from soliciting licensed charitable organizations or holding a distributor license under KRS Chapter 238; allow the corporation to investigate and have free access to the office or place of business of a charitable gaming license or facility where licensed charitable gaming is offered; increase the administrative fine for a violation of KRS Chapter 238 from $1,000 to $5,000; allow a person to apply to the corporation for a stay of the ruling of the notice of violation; require a summary suspension to cease operations if there is an imminent risk to the health and safety of the public or a misappropriation of charitable gaming revenues; repeal and reenact KRS 238.538 to require a licensed charitable organization to only offer the play of electronic devices at locations authorized by the corporation and one additional location in either the same county or a county that is contiguous to the charitable organization's office location; require a charitable gaming facility to transfer its license first to one of the licensed charitable organizations it is affiliated with as of January 1, 2026, and next to any licensed charitable organization; prohibit a charitable gaming facility from transferring more than 3 licenses from locations where persons 21 years old and under are permitted to locations where only persons 21 years or older are permitted within 90 days of the effective date of this Act; establish the occurrences in which the play of charitable gaming devices shall be lost and forfeited at an additional location; amend KRS 243.500, 436.480, 525.090, 528.010, and 528.070 to exempt fantasy contests, fixed-odds wagering, and wagering on live horse races and historical horse races; amend KRS 2.015, 68.182, 91.202, 92.282, and 238.550 to conform; require the corporation to present a status report on the purse stabilization fund not later than November 30, 2027; provide that the Act may be cited as the Wagering Consumer Protection Act.