The Department of Revenue administers the fixed-odds wagering excise tax. The new statutory language is provided in
KRS 138.552.
Effective July 15, 2026
Fixed-Odds Wagering
House Bill 904, passed during the 2026 Kentucky legislative session, establishes a new excise tax on persons licensed to conduct fixed-odds wagering by the Kentucky Horse Racing and Gaming Corporation (
KHRGC) under
KRS 230.811. The excise tax is
9.75% on adjusted gross revenue of fixed-odds wagers on live horse racing placed at the licensed track and 14.25% on adjusted gross revenues of fixed odd-wagers placed online via websites or mobile applications or other off-site technology approved by the KHRGC.
“Fixed-odds wagering” is a form of betting in which the payout odds are set and agreed upon at the time the wager is placed. Those odds do not change, regardless of subsequent market movement or betting activity, except that the bookmaker may apply Tattersalls rules to ensure fair settlement.
“Adjusted gross fixed-odds wagering revenue” is the total sum of wagers collected on all fixed-odds wagers on live horse racing and all combination of bets of multiple individual wagers into one bet that includes one or more fixed-odds wagers on live horse racing, less winnings paid to participants in the contest and all excise taxes paid pursuant to federal law.
All tax returns and payments are due on or before the 20th of the month following the month in which wagering occurred. If a taxpayer's adjusted gross revenue for a month is a negative number, the taxpayer may carry over the negative amount to the return filed for the subsequent month. However, no amount shall be carried over in any period more than twelve (12) months after the month in which the amount carried over was originally due. The first monthly reporting period, July 2026, is due on or before August 20th, 2026.