Kentucky Governor Andy Beshear has vetoed a sweeping bill that would have changed several gambling and horse racing laws across the state, sending the measure back to lawmakers during the final stage of the legislative session.

House Bill 904 had cleared both chambers of the Kentucky General Assembly after being introduced in early March. The proposal covered sports betting, horse racing, charitable gaming, daily fantasy sports and regulatory procedures. Despite the wide scope of the bill, Beshear based his rejection on a narrow section tied to agency authority.

Governor Focuses on Executive Oversight

The governor objected to language that would have allowed the Kentucky Lottery Corporation and the Kentucky Horse Racing and Gaming Corp. to file emergency and standard administrative regulations without gubernatorial review or approval.

“Under the Kentucky Constitution, the Governor is the Chief Magistrate of the Executive Branch and has a duty to ensure all laws are faithfully executed, including by agencies carrying out the laws through regulation,” Beshear said.

He added: “In that role, the Governor reviews proposed emergency regulations to ensure they are necessary and meet legal requirements for emergency filing.”

Beshear’s veto message did not challenge the gambling policy changes included in the legislation. Instead, he argued that bypassing executive review would weaken constitutional checks on agencies.

“Authorising an agency to file an emergency regulation in this manner would prevent the Governor from carrying out his constructional duties and allow boards and agencies to impose rules on Kentuckians without executive oversight, including boards whose decisions impact public safety.”

He concluded: “For those reasons, I am vetoing House Bill 904.”

The dispute reflects a broader struggle between the Democratic governor and the Republican-led legislature over the balance of power in Kentucky government. Similar disagreements emerged during the COVID-19 pandemic, when lawmakers sought limits on emergency executive actions. Court rulings later confirmed that lawmakers write policy, while governors may use emergency powers on a restricted basis unless legislators extend them.

Monday was the final day for Beshear to act on legislation delivered by March 31. His office released an update on bills signed, vetoed or allowed to become law without signature shortly before 4 p.m. Eastern Time. HB 904 was not listed in that release, and the formal veto notice showed the House clerk received it at 4:27 p.m.

What House Bill 904 Would Change

The 150-page measure, sponsored by state Representatives Michael Meredith and Matthew Koch, included multiple changes to regulated gaming.

For sports betting, the bill would have raised the minimum legal wagering age from 18 to 21. It also would have prohibited licensed sportsbooks from offering “under” proposition bets involving college athletes from Kentucky schools. Licensed operators would also have been barred from offering prediction markets in the state.

Other provisions required sportsbooks to forward self-exclusion requests they receive to the Kentucky Horse Racing and Gaming Corp. The bill also would have blocked individuals owing $500 or more in unpaid child support from placing wagers.

The proposal created a regulatory framework for daily fantasy sports.

Horse racing changes included mandatory upgrades to pari-mutuel wagering systems, fixed-odds betting at in-state tracks, and a requirement to stop wagering on races no later than the opening of the starting gate. Tracks also would have been prevented from partnering with prediction market operators.

For charitable gaming, the bill set a minimum age of 21 for e-pulltabs, outlined machine placement and monitoring standards, and raised the prize cap from $599 to $1,499.

Override Vote Expected

Lawmakers return for the final two days of the session with veto override votes expected to dominate proceedings. Republicans hold supermajorities in both chambers, and only simple majorities are needed to overturn a veto.

HB 904 previously received a 24-13 Senate vote, including 23 Republican votes in favor. Some Democrats opposed the measure because of concerns over prediction market language and possible implications for Kentucky Derby broadcasting. The House later agreed to Senate changes by a 64-19 vote, with 10 Democrats supporting the final version.

Supporters of the charitable gaming provisions had already prepared for the possibility of a veto. Mike Mulrooney, founder of Louisville-based Shirley’s Way, recently urged supporters to contact lawmakers before the session resumed.

Mulrooney said charitable gaming “has become a needed lifeline” for organizations across the state.

“Grants and donations have slowed down over the years, and finding volunteers for an event is tough. That’s why charitable gaming is so important,” he said.

State data cited in reports showed wagers with licensed charitable organizations rose from nearly $490 million in 2019 to $1.37 billion in 2024. Adjusted gross revenue increased from $76.6 million to $151.6 million over the same period, while net revenue climbed from $47.4 million to $94.9 million.

Kentucky law requires charities to retain at least 40% of adjusted gross revenue, with the statewide average exceeding 61% in both referenced years.