As with many US states at the moment, the daily fantasy sports situation is not entirely black and white. A bill aiming to legalize daily fantasy in Kentucky did gain a narrow win in the House vote, but then did not receive enough votes to pass in the Senate. Despite this, DFS sites such as DraftKings and FanDuel are still able to operate in the state, as they have not been actively outlawed either.Rep. Adam Koenig says, “The attorney general of New York one day just declared [daily fantasy] illegal in New York, and we don’t want that to happen here. We wanted to be a legislative solution. We didn’t think that was going to happen, but it’s better off to do it this way and to make sure it’s legal.”

As it stands, players can continue to play daily fantasy sports in Kentucky without having to worry about any legal repercussions.

Todd Winkler, Editor at online-gambling.com

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Todd Winkler has been an editor at online-gambling.com for 6 years. His focus is on guides and articles about poker games, blackjack, and DFS. With relatives in New Zealand, he is also well aware of the gambling industry in the country.

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Online Daily Fantasy Sports in Kentucky – Overview

When it comes to gambling in Kentucky, the state is a bit of a mixed bag If you look at just the racinos (racetrack and casino combos) then you might come away thinking that the gambling industry in Kentucky is alive and thriving. There are nine racinos in the state, with more than 2,000 slot and gaming machines.

However, these numbers are deceptive. Gambling in Kentucky is actually still largely frowned upon. The state does not have any stand-alone casinos, nor any sports betting facilities. Betting in most forms is not allowed within the state. A small number of online operators are allowed but they are all licensed and linked exclusively to the pari-mutuel betting industry.

As we mentioned earlier, daily fantasy sports are a gray area in Kentucky – which works in your favor if you’re wanting to play. While no bills have been passed to actively make DFS legal, it has also not been actively outlawed. This means that you can play DFS without breaking any laws. So, let’s take a look at some of the sports on offer.

Online Daily Fantasy NFL – Always Popular

The NFL fantasy league is probably the most popular DFS league that there is. It’s easy to play too; you can draft a new lineup whenever you want, as long as you stay within your budget. Then you can enter into a public contest, or a private one against friends. Most platforms pay out as soon as the contest is finished, and they run both daily and weekly so there is always something to enter.While Kentucky no longer has a team in the NFL, the state it still pretty invested in the sport since this year sees five University of Kentucky alumni playing in the league. That is the highest number of draft picks since 1979, when eight players were chosen. This year, Benny Snell Jr., George Asafo-Adjei, Josh Allen, Lonnie Johnson Jr., and Mike Edwards will play in the NFL.

Online Daily Fantasy MLB – Batter up!

Like in the NFL, Kentucky does not have its own team in the league, but numerous players from Kentucky colleges have been drafted to play. This year, seven Kentucky-born players are playing in the MLB: Jake Snider, Drew Campbell, Shay Smiddy, Carson Coleman, Ryan Shinn, Dalton Stambaugh, and Alex Garbrick.In MLB fantasy, you can draft a lineup of two pitchers and eight batters and enter them into a competition. When your players make plays on the mound or at the dish, you score points. The more points you score, the higher you climb on the leaderboard – as simple as that.

Online Daily Fantasy MLS – Get Off the Bench

In a game of MLS fantasy, you are given a $50,000 budget to draft your eight-player team. Each team much include players from at least three different teams, so you can’t just rebuild your favorite soccer team! It’s worth weighing up players’ cost versus what they could be worth to your team. For example, forwards often carry the highest salaries but have the advantage of being able to win points by scoring goal or assisting.Although Kentucky doesn’t have a team in the MLS, this is still a state interested in soccer. Louisville City FC plays in the United Soccer League.

Online Daily Fantasy NHL – Super Cool

Ice hockey is a hugely popular sport across America and Canada, so of course there is a large fantasy league for it as well. You have to draft your team of eight skaters and a goalie while staying within budget. You can then score points in various categories: goals, assists, shots on goal, etc. The goalies can win you points as well for saves, wins, and shutouts. By climbing the leaderboard, you can win yourself a cash prize which will be paid out as soon as the competition is over.

College Basketball – A Slam Dunk

College basketball is extremely popular in Kentucky, although there has been a recent surge in the quality of the University of Louisville football team too. The Western Kentucky University’s man’s basketball program is one of the ten most winning in the history of the NCAA. There is an ongoing battle for the most popular team in college sports in Kentucky, with the team “Red or Blue?” often heard. This refers to the primary colors of the two main universities: the University of Kentucky (blue) and the University of Louisville (red).

Timeline of Daily Fantasy Sports Legislation

Kentucky is well-known for its horse racing due to the famous Kentucky Derby taking place in Louisville every year. However, there is more to this state than just horse racing. Let’s take a look at the history of gambling and daily fantasy sports in Kentucky to get a better idea of how it got to where it is today. For more information on gambling in this state, you can visit our dedicated Kentucky gambling page.

Legal Daily Fantasy Betting Age in Kentucky

Kentucky gambling laws define gambling as ““staking or risking something of value on the outcome of a contest, game, gaming scheme, or gaming device which is based upon an element of chance, in accord with an agreement or understanding that someone will receive something of value in the event of a certain outcome.” Exempted from this law are the state lottery, horse racing, and instant racing machines. Charities are allowed to operate bingo games and raffles if it is for fundraising. As we have discussed, DFS is not counted as illegal gambling.

For any type of legal gambling in Kentucky, the player must be at least 18 years old. This is quite generous, as a lot of states require players to be 21 years old.

In Kentucky, bookmakers, owners or gambling devices, and organizers of games face strict penalties, but players do not. Promoting gambling is a Class A misdemeanor or a Class D felony, depending on the charges.

• DFS Betting Age
  You must be at least 18 years old to gamble or play DFS in Kentucky.

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• Alcohol Age
  In the state of Kentucky, you cannot drink alcohol until you are at least 21 years old.
• Weed Age
  Smoking cannabis for recreational purposes is currently still illegal in the state of Kentucky.

Is Daily Fantasy Betting Legal Outside of the Kentucky?

Daily fantasy sports betting is legal to some degree or another in most states in the USA. There are a handful of states where it has been made illegal, and others which have actively passed legislation to make it legal. The majority of states handle the situation much like Kentucky, where it has neither been actively made legal or illegal, and so is allowed to happen without fear of prosecution. The situation is the same for daily fantasy sites in WV.

For more information about DFS in the USA, you can have a look at our section about daily fantasy sports in the US. The states bordering Kentucky all have similar rules on this gambling activity. The Tennessee daily fantasy betting sector is legal.

The Best Fantasy Sports App in Kentucky

As with most forms of gambling, daily fantasy sports are not limited to your home computer. The majority of sites offer decent mobile versions as well, so you play from your phone. Many of them also have downloadable apps so that you can have the best user experience possible, even when you are out and about. Making drafts and picks on your phone is really convenient and often faster than on your computer. We are particularly taken with Draft Kings mobile app as it offers a great user experience.

Taxes on Daily Fantasy Winnings: Legal Overview

As in most states, gambling winnings in Kentucky are subject to both state and federal income taxes. If you win a larger prize, the state lottery agency withholds taxes from winnings so that there is no confusion about what is owed. If you win $600 or less, you can collect your winnings from any authorized retailer and taxes will not be taken from the winnings. However, winners are required to declare the prize as income. For more than $600, winners must submit a claim form to the Kentucky lottery agency, which will then report the prize to the IRS.

The federal withholding rate on gambling wins is 25%. Kentucky’s withholding rate is set by state law as equal to the highest state income tax rate (6%). If a winner is in a lower tax bracket, then they can get a refund after they file their taxes if too much has been withheld.

Upcoming Regulation Changes to Be Aware Of

What it comes down to in Kentucky, is that there aren’t that many types of legal gambling but there are some gray areas, such as daily fantasy sports. Of course, you can also legally enjoy horse race betting, charity games, social games, and lottery betting.

Recent bills trying to allow more legal gambling have failed, so many people are having to cross state lines in order to gamble legally. There has also been a crackdown on online gambling, so it is unlikely that Kentucky is going to change their position on that any time soon. While it doesn’t look like this state has any plans to make DFS illegal, it seems quite happy to not face the problem at the moment and just leave it as a legal gray area.

Daily Fantasy Guides for Nearby States

• Tennessee
• West Virginia
• Ohio
• Indiana