Kentucky’s sports betting won’t have an integrity fee

The state’s working group on the segment is set to base taxes on net revenue and wouldn’t create a fee for the sports leagues.

US.- Sports betting continues to take over the US, and Kentucky is set to become yet another state to legalise the segment. That’s why a working group is debating how to regulate the activity and has decided that taxes are set to be based on net revenue and no integrity fees will be paid to professional sports leagues.

Sen. Julian M. Carroll told media outlet Sports Handle that he believes “there is consensus that the appropriate tax on sports wagering is on net revenue and sports leagues will not receive any fees.” That way, Kentucky would follow the lead of the other six states that have passed sports betting legislation and leave the sports leagues out of the business. According to him, Kentucky lawmakers don’t favour an integrity fee because it doesn’t “meet with (the) goals of protecting its citizens and generating new revenue.”

Sen. Carroll pre-filed the net vs. handle issue on taxation and called for a 20% tax on handle as that’s how the state, where horse racing is very popular, taxes pari-mutuel betting. However, the working group has decided to tax on net revenue and is yet undecided on how big the rate will be.

For now, the Kentucky working group continues to discuss how to implement sports betting in the state but Sen. Carroll is confident that legislation will be approved sooner or later as the segment would bring big money to the state coffers.