Sports Wagering Excise Tax
The Department of Revenue administers the sports wagering excise tax. The new statutory language is provided in KRS 138.552.
Effective June 29, 2023
House Bill 551, passed during the 2023 Kentucky legislative session, establishes a new excise tax imposed on persons licensed to conduct sports wagering by the Kentucky Horse Racing Commission (KHRC) under KRS 230.811 and 230.814. The new excise tax rate is nine and three-quarters percent (9.75%) on the adjusted gross revenue on wagers placed at the licensed track and fourteen and one-quarter percent (14.25%) on the adjusted gross revenue on wagers placed online via websites or mobile applications or other off-site technology approved by the KHRC.
The Sports Wagering Excise Tax Report and payment are due on or before the 20th of the month following the month in which the reportable wagers occur. The first monthly reporting period, September 2023, is due October 20th. All Sports Wagering Excise Tax Reports must be filed and paid online through the Sports Wagering Tax Application.