Gambling Laws in Kentucky. Kentucky’s general gaming laws are covered by KY Rev Stat § 528.010-0.120 and prohibit most forms of gambling that are not expressly authorized by the state. In Kentucky, gambling is defined as follows. A change in state tax law in Kentucky for 2018 that removed the ability to deduct gambling losses from any gambling winnings income moved a step toward being changed back to the previous standard.

Kentucky gaming laws are confusing when it comes to online gambling. Even though it’s obvious that Kentucky is against unregulated Internet gambling, the actual legalities of gambling online from the state aren’t very clear. In 2011 Kentucky attempted to seize several gambling websites that were accepting bets from Kentucky residents. So it’s clear that Kentucky is against online gambling, but they have yet to write a law that specifically bans gambling online for money.

For those who looking for gambling sites that accept Kentucky residents, we’ve created a list of the most popular sites. All of our suggested sites are highly recommended, safe, secure, legitimate, and offer a multitude of games and other options. In addition, we would like to point out that we are not attorneys and if you would like more detailed information about Kentucky online gambling laws, we recommend contacting an attorney for a consultation.

Kentucky Gambling Laws

Section 528.010

Definitions for chapter –

The following definitions apply in this chapter unless the context otherwise requires:

(1) “Advancing gambling activity” — A person “advances gambling activity” when, acting other than as a player, he engages in conduct that materially aids any form of gambling activity. The conduct shall include, but is not limited to, conduct directed toward the establishment of the particular game, contest, scheme, device, or activity involved; toward the acquisition or maintenance of premises, paraphernalia, equipment, or apparatus therefor; toward the solicitation or inducement of persons to participate therein; toward the actual conduct of the playing phases thereof; toward the arrangement of any of its financial or recording phases or toward any other phase of its operation. A person who gambles at a social game of chance on equal terms with other participants does not otherwise advance gambling activity by performing acts, without remuneration or fee, directed toward the arrangement or facilitation of the game as inviting persons to play, permitting the use of premises therefor and supplying equipment used therein.

(2) “Bookmaking” means advancing gambling activity by unlawfully accepting bets upon the outcome of future contingent events from members of the public as a business.

(3) (a) “Gambling” means staking or risking something of value upon 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. A contest or game in which eligibility to participate is determined by chance and the ultimate winner is determined by skill shall not be considered to be gambling.

(b) Gambling shall not mean charitable gaming which is licensed and regulated under the provisions of KRS Chapter 238.

(4) “Gambling device” means:

(a) Any so-called slot machine or any other machine or mechanical device an essential part of which is a drum or reel with insignia thereon, and which when operated may deliver, as a result of the application of an element of chance, any money or property, or by the operation of which a person may become entitled to receive, as the result of the application of an element of chance, any money or property; or

(b) Any other machine or any mechanical or other device, including but not limited to roulette wheels, gambling tables and similar devices, designed and manufactured primarily for use in connection with gambling and which when operated may deliver, as the result of the application of an element of chance, any money or property, or by the operation of which a person may become entitled to receive, as the result of the application of an element of chance, any money or property;

(c) But, the following shall not be considered gambling devices within this definition:

1. Devices dispensing or selling combination or French pools on licensed, regular racetracks during races on said tracks.

2. Electro-mechanical pinball machines specially designed, constructed, set up, and kept to be played for amusement only. Any pinball machine shall be made to receive and react only to the deposit of coins during the course of a game. The ultimate and only award given directly or indirectly to any player for the attainment of a winning score or combination on any pinball machine shall be the right to play one (1) or more additional games immediately on the same device at no further cost. The maximum number of free games that can be won, registered, or accumulated at one (1) time in operation of any pinball machine shall not exceed thirty (30) free games. Any pinball machine shall be made to discharge accumulated free games only by reactivating the playing mechanism once for each game released. Any pinball machine shall be made and kept with no meter or system to preserve a record of free games played, awarded, or discharged. Nonetheless, a pinball machine shall be a gambling device if a person gives or promises to give money, tokens, merchandise, premiums, or property of any kind for scores, combinations, or free games obtained in playing the pinball machine in which the person has an interest as owner, operator, keeper, or otherwise.

3. Devices used in the conduct of charitable gaming.

(5) “Lottery and gift enterprise” means:

(a) A gambling scheme in which:

1. The players pay or agree to pay something of value for chances, represented and differentiated by numbers or by combinations of numbers or by some other media, one (1) or more of which are to be designated the winning ones; and

2. The ultimate winner is to be determined by a drawing or by some other method based upon the element of chance; and

3. The holders of the winning chances are to receive something of value.

(b) A gift enterprise or referral sales plan which meets the elements of a lottery listed in paragraph (a) of this subsection is to be considered a lottery under this chapter.

(6) “Mutuel” or “the numbers games” means a form of lottery in which the winning chances or plays are not determined upon the basis of a drawing or other act on the part of persons conducting or connected with the scheme, but upon the basis of the outcome or outcomes of a future contingent event or events otherwise unrelated to the particular scheme.

(7) “Player” means a person who engages in any form of gambling solely as a contestant or bettor, without receiving or becoming entitled to receive any profit therefrom other than personal gambling winnings, and without otherwise rendering any material assistance to the establishment, conduct, or operation of the particular gambling activity. A person who engages in “bookmaking” as defined in subsection (2) of this section is not a “player.” The status of a “player” shall be a defense to any prosecution under this chapter.

(8) “Profiting from gambling activity” — A person “profits from gambling activity” when, other than as a player, he accepts or receives or agrees to accept or receive money or other property pursuant to an agreement or understanding with any person whereby he participates or is to participate in the proceeds of gambling activity.

(9) “Something of value” means any money or property, any token, object, or article exchangeable for money or property, or any form of credit or promise directly or indirectly contemplating transfer of money or property or of any interest therein, or involving extension of a service, entertainment, or a privilege of playing at a game or scheme without charge.

(10) “Charitable gaming” means games of chance conducted by charitable organizations licensed and regulated under the provisions of KRS Chapter 238.

Section 528.020

Promoting gambling in the first degree –

(1) A person is guilty of promoting gambling in the first degree when he knowingly advances or profits from unlawful gambling activity by:

(a) Engaging in bookmaking to the extent that he employs or utilizes three or more persons in a bookmaking activity and receives or accepts in any one day bets totaling more than $500; or

(b) Receiving in connection with a lottery or mutuel scheme or enterprise:

1. Money or written records from a person other than a player whose chances or plays are represented by such money or records; or

2. More than $500 in any one day of money played in the scheme or enterprise; or

(c) Setting up and operating a gambling device.

(2) Promoting gambling in the first degree is a Class D felony.

Section 528.030

Promoting gambling in the second degree –

(1) A person is guilty of promoting gambling in the second degree when he knowingly advances or profits from unlawful gambling activity.

(2) Promoting gambling in the second degree is a Class A misdemeanor.

Section 528.040

Conspiracy to promote gambling –

(1) A person is guilty of conspiracy to promote gambling when he conspires to advance or profit from gambling activity.

(2) “Conspire” means to engage in activity constituting a criminal conspiracy as defined in KRS 506.040.

(3) Conspiracy to promote gambling is a Class D felony. Effective:

Section 528.050

Kentucky Casinos Open

Possession of gambling records in the first degree –

(1) A person is guilty of possession of gambling records in the first degree when, with knowledge of the contents thereof, he possesses any writing, paper, instrument or article of a kind commonly used:

(a) In the operation or promotion of a bookmaking scheme or enterprise and constituting, reflecting or representing bets totaling more than $500; or

(b) In the operation, promotion or playing of a lottery or mutuel scheme or enterprise and constituting, reflecting or representing more than 500 plays or chances therein.

(2) It shall be a defense to any prosecution under this section that:

(a) The writing, paper, instrument or article possessed by the defendant constituted, reflected or represented bets of the defendant himself in a number not exceeding ten (10); or

(b) The writing, paper, instrument or article possessed by the defendant was neither used nor intended to be used in the operation or promotion of a bookmaking scheme or enterprise, or in the operation, promotion, or playing of a lottery or mutuel scheme or enterprise.

(3) Possession of gambling records in the first degree is a Class D felony.

Section 528.060

Possession of gambling records in the second degree –

(1) A person is guilty of possession of gambling records in the second degree when, with knowledge of the contents thereof he possesses any writing, paper, instrument or articles of a kind commonly used:

(a) In the operation or promotion of a bookmaking scheme or enterprise; or

(b) In the operation, promotion or playing of a lottery or mutuel scheme or enterprise.

(2) It shall be a defense to any prosecution under this section that: (a) The writing, paper, instrument, or article possessed by the defendant constituted, reflected, or represented bets of the defendant himself in a number not exceeding ten (10); or

(b) The writing, paper, instrument, or article possessed by the defendant was neither used nor intended to be used in the operation or promotion of a bookmaking scheme or enterprise, or in the operation, promotion, or playing of a lottery or mutuel scheme or enterprise.

(3) Possession of gambling records in the second degree is a Class A misdemeanor.

Section 528.070

Permitting gambling –

(1) A person is guilty of permitting gambling when, having possession or control of premises which he knows are being used to advance gambling activity, he fails to halt or abate or attempt to halt or abate such use within a reasonable period of time.

(2) Permitting gambling is a Class B misdemeanor.

Section 528.080

Possession of gambling device –

(1) A person is guilty of possession of a gambling device when, with knowledge of the character thereof, he manufactures, sells, transports, places or possesses a gambling device or conducts or negotiates any transaction affecting or designed to affect ownership, custody or use of any gambling device, believing that it is to be used in the advancement of unlawful gambling activity.

(2) Possession of a gambling device is a Class A misdemeanor.

Section 528.090

Prima facie proof –

(1) Proof of possession of any gambling device or any gambling record specified in KRS 528.050, 528.060, and 528.080 is prima facie evidence of possession thereof with knowledge of its character or contents.

2) In any prosecution under this chapter in which it is necessary to prove the occurrence of a sporting event, a published report of its occurrence in any daily newspaper, magazine or other periodically printed publication of general circulation or evidence that a description of some aspect of the event was written, printed or otherwise noted at the place in which a violation of this chapter is alleged to have been committed shall be admissible in evidence and shall constitute prima facie proof of the occurrence of the event.

Section 528.100

Forfeiture –

Any gambling device or gambling record possessed or used in violation of this chapter is forfeited to the state, and shall be disposed of in accordance with KRS 500.090, except that the provisions of this section shall not apply to charitable gaming activity as defined by KRS 528.010(10).

Section 528.110

Horse races, messenger betting prohibited — Exception.

(1) Any person who, either for himself or as agent or employee of another, wagers money or anything of value on a horse race run or about to be run or advertised, posted or reported as being run at any race track in or out of this state, or who engages in the occupation of receiving, making, transmitting or negotiating, either in person or by messenger, telephone or telegraph, wagers on horse races run or about to be run or advertised, posted or reported as being run or about to be run at any race track in or out of the state, shall, except in the case of wagers made within the enclosure of a race track licensed by the Kentucky Horse Racing Authority during an authorized race meeting at that track, or an enclosure during regular meetings in which running, trotting or pacing races are being conducted by associations regularly organized for that purpose, be guilty of a Class A misdemeanor.

(2) In any prosecution under subsection (1) of this section, the state need not prove that the horse race upon which the wager was placed was actually run. Proof that the wager was made upon what purported to be or what was advertised, reported or understood to be a horse race shall be sufficient to establish a prima facie case for the state.

Section 528.120

Off-track acceptance of money for pari-mutuel wagering –

(1) No person, as a business or for any compensation, shall, directly or indirectly, accept any thing of value to be wagered or to be transmitted or delivered for wager to any pari-mutuel wagering enterprise, or participate in any such transmission.

(2) As used herein, “person” shall mean and include any individual, partnership, association, joint stock association or trust, corporation, or other business entity, whether incorporated or not.

(3) Any person violating any of the provisions of this section shall be guilty of a Class A misdemeanor.

Sources:

Kentucky is perhaps most famous in the online poker world for their very bold attempt to seize the domains of 141 online poker sites back in 2008, claiming that they were in violation of Kentucky law prohibiting being in possession of gambling devices, where these domains were held to fall within that definition.

As hard as this is to believe, they did manage to get a court to order the sites in question, all outside not only the state but the United States, to block access to Kentucky residents.

In the end, this ruling had no legal effect, since the operators in question are well outside the jurisdiction of Kentucky, however 8 years later the legal battle wages on at the appellate level. In spite of all of this likely being a waste of the courts’ time, the government of Kentucky is not easily put off by any of that.

The latest ruling by the Kentucky Court of Appeals overturned a former ruling by their courts that was looking to force the remaining 132 domain owners which the state is seeking to seize to have their identities revealed. (1) There is no indication though that the state has lost its will to fight just yet.

This longstanding farce has ended up causing some of the online poker sites still serving Americans to withdraw from the Kentucky market and no longer accept players from there. Fortunately though not all have been intimidated, including Ignition Poker, one of our most trusted and recommended poker sites.

Gambling Law In Kentucky

If you live in Kentucky, you will no doubt be happy to know that the overwhelming will of the Commonweath of Kentucky is aimed at unauthorized gambling operators and not the gambling public.

Kentucky is indeed one of the states that has turned all of their guns against gambling operators. Promoting gambling, conspiring to promote gambling, possession of gambling records, permitting gambling, and possession of a gambling device are all criminal offenses. (2)

However, none of the crimes listed involve actually participating in gambling. While profiting from gambling is an offense, this does not mean profiting from wagering, but profiting from the business of offering wagering.

In fact players are excluded specifically from these laws. Some have believed that players may be guilty of the following offense, where “a person is guilty of promoting gambling in the second degree when he
knowingly advances or profits from unlawful gambling activity.” (3)

However, when we look at the definition of advancing gambling in the statute, it states that “a person advances gambling activity when, acting other than as a player, he engages in conduct that materially aids any form of gambling activity. (4)

Given that there are no other sections that could even possibly be construed as applying to players, this makes it quite clear that there isn’t any reason for Kentucky online poker players to be concerned, in spite of the state’s zeal for trying to go after operators in other countries.

Once again though these operators are way outside the jurisdiction of Kentucky and the state simply lacks both the legal authority and power to do anything to them that would be of concern to players. The Commonwealth of Kentucky has done a lot of barking and may continue to do so but basically they continue to bark at the moon.

Are Casinos Legal In Kentucky

The Future Of Poker In Kentucky

Kentucky does not presently have any live poker rooms, or any casinos for that matter, in spite of their historically being a hotbed for gambling. Gambling in Kentucky is limited to their horse tracks and their lottery at present.

However there is a move afoot to build some casinos in the state, although a bill which would seek to allow for that got defeated. However this may happen at some point in the future. In the mean time, Kentucky residents who wish to play live poker have to travel to other states to do it.

Depending on where in the state you live though, you may not need to go very far, for instance the Horseshoe Southern Indiana is just outside Louisville in Elizabeth, IN, and features a very nice card room with 30 tables. (5)

The prospects of an online poker bill look dim right now though, as there does not seem to be any interest in that. It’s expected that a casino bill would come first, but the horse racing business is so jealously protected that people tend to fear any sort of competition, so online poker becoming regulated in Kentucky is at best quite a ways off.

Players from Kentucky need not travel to another state or wait for regulated poker to happen some day though, as BetOnline is very willing to accept online players from Kentucky and one of the only rooms I would personally recommend if you reside in this location. Playing online poker is clearly against the law in many states, but with Kentucky’s gambling laws aimed at operators and not players, I can’t imagine any reason why anyone in Kentucky who wishes to play poker online would hesitate to do so.

If you already have a BetOnline account, options like ACR – and my personal favorite, Ignition Poker – are also available at your leisure. Ignition is a newcomer to the scene, but don’t let them fool you – they’re actually backed by the same guys who owned Bovada, who were recently acquired by them in 2016. Check out our Ignition Review today for more info on this room.

References:

(1) Kentucky Court Overturns Seizure of Gambling Sites

(2) Kentucky Revised Statutes, Chapter 528

(3) Promoting Gambling In The Second Degree

(4) 528.010 Definitions For This Chapter

(5) Horseshoe Casino Southern Indiana

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