Kentucky online sports betting officially went live on September 28, just a few short weeks after the launch of retail gambling. And, well, it’s safe to say the introduction of mobile wagering is a big hit.
Granted, it’s much too early for profound and sweeping conclusions. The true impact of online sports betting in Kentucky will unfold over months and years rather than just a few short weeks.
Even so, the initial returns are quite staggering. The state won’t have official numbers until sometime in November 2023. We must also stress that, as of this writing, The Bluegrass State has allowed online sports betting for less than 30 games.
With those caveats in mind, though, enough news has developed for us to fire up the analysis. Here are the biggest notes and takeaways as well as our thoughts on the launch of Kentucky online sports betting so far.
Kentucky Online Sportsbooks See MILLIONS of Attempted “Check-Ins” During the First 24 Hours of the Launch
No, you did not read the headline wrong. There were, in fact, millions of “check-in” attempts with Kentucky online sportsbooks during their first 24 hours of operation.
To be more exact, there were 2 million “check-in” attempts, a number that seems to far exceed what the state was expecting. It is “more than twice as many check-ins than Louisiana, which is slightly larger in population than Kentucky, saw on its first day of online betting,” according to a press release from GeoComply, a software company that online sports betting sites use to track the locations of their users.
As the company further clarified, “check-ins” do not refer to the number of bets placed or accounts created. Indeed, those are actions that register as a “check-in.” But this umbrella also covers attempts to log back into existing accounts.
Theoretically, then, the number of people who registered and placed wagers on the launch of Kentucky online sports betting is much smaller. Still, there’s now downplaying this number. It’s clear evidence that people are at least interested in the debut of mobile sports wagering.
More Than 200,000 Online Sports Betting Accounts were Active in Kentucky for the Launch
As Kentucky Governor Andy Beshear noted (via Legal Sports Report), roughly 60,000 accounts were created with online sportsbooks in the United States in advance of September 28. By the day’s end, however, there were reportedly over 200,000 accounts active inside the state, once again according to GeoComply.
That number is staggering, but also not too surprising. Kentucky is home to quite a few seasoned betters, thanks largely to the longstanding horse race industry. The state also planned both their retail and online sports gambling launches around 2023 NFL season betting. On-site wagering went live in time for Week 1 of the 2023 NFL season, and the online launch took place just before Week 4. As the biggest domestic sports betting driver, the NFL regular season acted as an engagement cow for Kentucky online sports betting.
At the same time, we must also acknowledge that the state handed out enough licenses to ensure accessibility and an aggressive sign-up process. Seven online sports betting apps currently operate in Kentucky: Barstool Sportsbook, Bet365, BetMGM, Caesars, DraftKings, Fanatics and FanDuel.
Although having this many active online sportsbooks isn’t exactly abnormal, it’s more than with which many other states debuted. And by launching with seven operators, Kentucky ensured their opening-day reach was as wide as possible.
Did Legal Gambling Age Play a Role in the Successful Launch of Kentucky Online Sports Betting?
Contrary to most other states, as well as the recommendation of National Council on Problem Gaming, Kentucky online sports betting will be available to those under the age of 21. Depending on the sportsbook, residents only need to be 18 years of age older to create an account and start placing wagers.
It stands to reason that the wider age bracket will inflate Kentucky’s bottom line. College-age students between 18 and 21 aren’t usually working with tons of disposable income, but they are among the most sought-after demographic among sports media companies. Their interest in sports at large is bound to spill over into the betting landscape.
That said, it’s hard to believe they moved the initial needly this starkly for Kentucky online sports betting. Like we already mentioned, a lack of disposable income probably limits how much they’re able to spend. Experts in the region estimate that any given Kentucky sportsbook will get maybe 5 percent of their handle from bettors under the age of 21.
What’s more, only two online sportsbooks in Kentucky currently permit users under the age of 21 to submit transactions: DraftKings and Bet365. The other five will only accept wagers from people 21 or older.
It Might be Time to Recalibrate Kentucky Sports Gambling Projections
Presumably limited business from customers under the age of 21 is actually great news. It means that Kentucky online sports betting is off to a scorching-hot start without any unique or unsustainable factors.
And to that end, it might be time to recalibrate expectations.
Officials originally expected a 9.75 percent sports betting tax to yield anywhere between $20 million and $30 million of additional revenue in the opening year. But given how successful Kentucky online sports betting proved to be during the first couple of days, let alone weeks, the ceiling on that number feels much higher.
Of course, we could be getting ahead of ourselves. Maybe interest in Kentucky online sports betting will wear off as it’s around longer. Or maybe it tapers off a great deal after betting on the NFL Super Bowl and betting on the college football National Championship has concluded.
At the very least, though, it seems like Kentucky’s longer-term revenue projections may have been to conservative. They’re on space to make a much bigger financial splash than many could have hoped.
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