(AsiaGameHub) –   Kentucky’s House Bill 904 has officially moved forward after the state legislature successfully overrode a veto from Governor Andy Beshear. The new law grants racetracks in the state the authority to provide fixed-odds wagering options to Kentucky residents.

Bill 904 Advances to the Next Phase

With fixed-odds betting, gamblers can lock in a specific price at the moment they place their bet. For instance, a wager placed at 5–1 odds will pay out at that rate even if the odds fluctuate before the start of the race. This system is a significant departure from the pari-mutuel wagering model that has been the standard at American tracks for more than a century.

Senator Michael Meredith (R-Oakland), who introduced the legislation alongside Senator Matthew Koch (R-Paris), noted that the fixed-odds component was added following input from stakeholders with experience in international racing markets. Meredith pointed out that because fixed-odds are prevalent outside the United States, there is a belief that the format could win over bettors who are unhappy with pari-mutuel systems, particularly regarding the influence of computer-assisted wagering (CAW). Furthermore, Meredith suggested that the new format would be more attractive to younger fans who are already used to fixed-odds sportsbooks.

State authorities are now tasked with creating the regulatory framework for fixed-odds operations in Kentucky. This process involves deciding which entities can offer the service and how it will be integrated with pari-mutuel betting. While the Kentucky Horse Racing and Gaming Corporation is expected to manage the rollout, a firm date for when these bets will be available to the public has not been announced.

Resistance to the New Legislation

Churchill Downs, the world-famous home of the Kentucky Derby, has maintained its opposition to the introduction of fixed-odds betting. This resistance is likely tied to financial concerns, as the company could see a shift in its revenue streams if it adopted the fixed-odds model.

The core difference between the two systems lies in how revenue is generated. In pari-mutuel wagering, the track takes a “takeout”—typically between 15% and 25%—from the total betting pool before payouts are made. This ensures the track receives a guaranteed portion of the handle to cover purses and operating costs. In contrast, fixed-odds betting usually functions on much tighter margins, meaning the track’s profit is not guaranteed and depends on the race results.

The legislation does not mandate that Churchill Downs offer fixed-odds betting; instead, other venues like Kentucky Downs in Franklin or The Red Mile in Lexington may choose to implement it. In separate developments, Churchill Downs is currently seeking to purchase the intellectual property for the Black-Eyed Susan Stakes and the Preakness Stakes, highlighting the company’s ongoing efforts to increase its dominance in the horse racing industry.