Expansion of Kentucky Sports Betting has Resulted in One Major Downside

The expansion of Kentucky sports betting is going swimmingly from a financial sports perspective. The Bluegrass State is routinely breaking month-over-month records, and pulled in almost $39 million in tax revenue for the 2024 calendar year.

Still, by broadening their offerings from just horse racing betting to general sports betting, Kentucky has apparently paved the way for one major downside: a colossal uptick in reports of problem gambling.

Calls to Kentucky Sports Betting Hotline have Exploded

Experts throughout the industry are worried about the impact online sports betting in the United States is having on problem gambling at large. Whenever markets legalize wagering, a substantial increase in reports of problem gambling seem to follow. 

The expansion of sports betting in Kentucky is proving to be no different. While it received extra attention ahead of the 2025 Kentucky Derby betting influx last month, it is an ever-present issue that extends beyond any one season or event. As Karla Ward of the Lexington Herald-Leader writes:

“But since Kentucky legalized sports betting in 2023, every day can be like Derby Day if one has a mind to bet. And industry experts say it’s presenting a problem for many Kentuckians — especially younger ones. Calls to the Kentucky problem gambling helpline more than quadrupled from 2022 to 2024 — from an average of 55 per month to 270 per month — according to the Kentucky Council on Problem Gambling. ‘If you have a cell phone in your pocket, you have accessibility to gamble,’ said Mike Stone, executive director of the Kentucky Council on Problem Gambling. ‘As gambling expands, more individuals will surface with a gambling problem.’”

Stone’s final point is one with which the entire industry must grapple. It would be one thing if problem gambling increases for a short period of time after sports betting legalization, only to then fall. To be sure, we’re not necessarily saying that’s okay. But it would suggest that problem gambling reaches more of a temporary apex.

Like Stone says, though, it appears to be the opposite. The longer Kentucky sports betting goes on, and the more it expands, the more people are at risk of developing a gambling issue.

Yes, it is Sports Betting that Drives This Issues

Many wonder whether these increases are purely due to sports betting. After all, online casino gaming is more accessible than ever, too. It is fair to question whether this increase is driven by Kentucky sports betting, or is shaped by a confluence of circumstances.

As it turns out, though, data points show that sports betting is the most prevalent form of problem gambling. From Ward’s piece:

“Many helpline callers do not share information about the type of gambling with which they struggle, but for callers who did, the most common form by far was sports gambling. According to data provided by the Kentucky Council on Problem Gambling, 603 people cited sports gambling as their reason for calling last year. That dwarfed the next most-common reasons for calling — more traditional forms of gambling like lottery games (147) and slots (120).”

While the entire sampling is larger, using these 870 total calls that identified specific issues leads to an eye-opening conclusion. If 603 cite sports betting as their issue, that is over 69 percent of all callers. Even if you account for a margin of error, this pretty clearly shows that the expansion of Kentucky sports betting is the catalyst behind problem-gambling rises.

Is There Any Way to Address the Rise in Problem Gambling?

This is an issue with no easy solution. Extremists will pose removing legal sports betting across the country altogether. While perhaps effective, it’s unrealistic. The sports betting floodgates have opened. There is no closing them now. Not completely, anyway.

Still, states could stand to devote more resources to problem gambling education and treatment. Right now, we see many places directing 5 percent or less of sports betting revenue to such programs. That share seems like it can pretty easily be higher. Much higher, in fact. 

Stricter regulations for sportsbooks and bettors could be on the table, too. We are already seeing Massachusetts sports betting regulators propose limits on how much individuals can wager. Through what’s known as the Better Health Act, they are also seeking more transparency from online sports betting sites in the United States, and how they interact and target customers. Beyond that, The Bay State has proposed having sportsbooks run financial background checks on wagers. That information, in turn, would be used to craft individual betting limits to make the experience safer. 

Granted, even the best solutions will not resolve everything. There is no such thing as perfection here. That stinks, because the stakes are so high—so human. But it’s a reality of an industry states have largely co-signed.

As such, the goal should be damage control. And not just cookie-cutter protections, but fuller-scale insulation against the worst effects of Kentucky sports betting, as well as gambling across the United States. Whether the industry is on the right track, of course, remains to be seen. Massachusetts’ future could be a great barometer for what’s to come. Even then, there will be resistance elsewhere. At some point, though, the issue of problem gambling will be more of a widespread focus.

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