The Department of Revenue administers the racing taxes for the Commonwealth
(KRS 138.510 – 138.550).
Imposed on all tracks conducting pari-mutuel wagering on live racing, telephone account wagering, intertrack wagering, simulcasts and interstate wagering under the jurisdiction of the Kentucky Horse Racing Commission.
Wagers at Receiving Tracks or Telephone Account Wagers or Whole Card Simulcast – 3% of money wagered if total anticipated annual live racing handle is more than $250,000
Due Date– no later than the fifth business day (excluding Saturday and Sunday) following the close of each race week. Race week will begin on Monday and end on Sunday.
Race tracks are required to collect from each person entering the race track on paid or free admission for all race meetings except county fairs conducting harness racing. (Excludes: employees of the race track, owners or trainers of horses, jockeys, or their employees)
Tax Rate – 15 cents for each admission
Due Date – within 30 days of the end of each race meet
Race tracks conducting live horse races must report and pay a license tax for each day of racing based on the average daily handle of the preceding race year.
Due Date - within 30 days at the close of each race meet
Tracks must file an annual report due by December 31 of each year giving a summary of the average daily handle of the race year concluded on the immediate preceding November 30 and pay any additional license tax due.
Historical Horse Racing - (KRS 138.510)
Tax Rate - 1.5% of all money wagered on historical horse races
Due Date - The report must be filed no later than the fifth business day (excluding Saturday and Sunday) following the close of each race week. A race week will begin on Monday and end on Sunday.
Advanced Deposit Wagering - (KRS 138.513)
Tax Rate - 0.5% on all amounts wagered by Kentucky residents through the licensees of ADW
Due Date - Returns are due the first business day of the week next succeeding the week during which the wagers forming the base of the tax were received. A race week will begin on Monday and end on Sunday.