When seven digital sports betting platforms go live in DraftKings.
The other operators in the first launch group — Barstool Sportsbook, Circa Sportsbook, which is licensed but won’t launch until later this year, will allow betting at 18.
There are six live U.S. jurisdictions that have set the legal age at 18: Montana, New Hampshire, Puerto Rico, Rhode Island, Washington, D.C., and Washington state. There is no statewide digital wagering in Montana (though players can use on-site mobile) or Washington state. Of those six, Washington has the biggest population at about 7.7 million. Kentucky’s population is about 4.5 million.
DraftKings has a monopoly in New Hampshire, which borders the strictest responsible gambling state in the nation, Vermont, have legalized with 21 as the minimum age, but operators haven’t launched in either state.
Inquiries to bet365 went unanswered, but DraftKings Senior Vice President, Deputy General Counsel
Griffin Finan told Sports Handle via email, “DraftKings is committed to following the age restrictions set forth by each individual jurisdiction.”
Staying at 21 easier on operators 1h3fa
The multiple operators that set the age for their mobile sportsbooks at 21 said they do so for myriad reasons, including that it’s easier to stay in compliance in every U.S. jurisdiction with a consistent wagering age. Otherwise, operators would have to tinker with their tech stack, particularly the know-your-customer (KYC) section, to manage a single jurisdiction with a different age minimum, geolocation services would have to put controls in place to ensure that an 18-year-old who can bet in Kentucky can’t in any of its six legal wagering border states, and staff would have to be educated and aware of the age difference.
“The age limit aligns with our casino policy, which is 21+,” one operator said via email.
“The problem that it comes down to for some people is making the switch in the KYC and tech stack,” said consultant Brendan Bussmann, managing partner of B Global. “Everyone has built their tech around 21, and it’s not just like two keystrokes to add ‘1-8.'”
Lawmakers in Kentucky leaned into the idea that horse racing and parimutuel wagering are a part of the fabric of the state. The Kentucky Derby is an annual, national event dating back more than a century, the Breeders’ Cup is regularly held in Kentucky, and legislators legalized historical horse racing (HHR) in 2021. Not to mention, the legal age for lottery in Kentucky and most other states is 18.
“The fundamental issue is this: Who made the call on this? The lawmakers who represent the people of Kentucky,” Bussmann said. “Who is going to say they are wrong?
“Kentucky isn’t different, the only thing that is different is how we treat lotteries vs. gaming. A state-run operation seems to be OK at 18, but a commercial entity isn’t.”
There are no studies or hard evidence that look at the difference between allowing gambling at 18 vs. 21. Responsible gambling advocates always push for the higher legal age.
“It’s fairly predictive that the earlier someone starts gambling, the more likely they are to develop a problem,” National Council on Problem Gambling Executive Director Keith Whyte told Sports Handle. “There are no clear studies on 18 vs. 21, but it’s 24 or 25 that [brain] maturity is reached.
“We’d welcome more research on that. We applaud operators who hold to higher minimum ages. We think an operator who sets a higher age of 21 is likely reducing risk and doing better for their own interest.”
More than $4.5 million has been wagered on sports during the first two weeks of sports betting.
The best news? Those funds are staying right here in our state to help us build a better Kentucky.
— Governor Andy Beshear (@GovAndyBeshear) September 21, 2023
Ohio regulator calls KY age irresponsible i5g5q
Responsible gambling has become a higher priority for wagering stakeholders over the last two years. Jurisdictions across the nation, including Kentucky’s neighbor Ohio, have clamped down on advertising to minors, imposed regulations requiring that “21+” be prominent on certain ads and marketing materials, and fined operators for trying to drum up business at or near college campuses.
The Ohio regulator blasted its counterparts in Kentucky when they opted to go with 18 as the legal age.
“The age group that is most at risk of developing a gambling problem are males 18 to 35,” Ohio Casino Control Commission Executive Director Matt Schuler told WO. “The younger ones are most vulnerable as they’re not at the age yet where they can thoroughly process the consequences of their actions. Not my opinion. Scientific fact.
“The target audience for sports gaming is males, theoretically 21-35 but I suppose in Kentucky, 18-35. So, you have this convergence of the target audience being the most at risk.”
Location data has shown plenty of #Kentucky residents trying to place bets near the borders of Indiana and Ohio. That will change soon once the Bluegrass State has legal #sportsbetting options of its own. https://t.co/dx1cbo8vvP
— iDEA Growth (@iDEA_Growth) August 15, 2023
The major Ohio city of Cincinnati sits right on the Kentucky border. On borders throughout the U.S., sports betting has created unique situations, including bettors parking at rest stops just over the border and restaurants offering specials to out-of-staters who are wagering. Ohio has had legal wagering since Jan. 1, and likely has enjoyed wagering traffic from Kentucky, but it’s possible that teenagers will now cross the border in the other direction to bet.
“We’ve never advocated for a particular age, we advocate for consistency,” Whyte said. “But even among ourselves, we’ve never been able to find research that backs up the age points. All the age points are arbitrary. That’s what makes it very difficult. [The NG] has been around since 1972, but gambling has been around a lot longer, so some of these ages have been around for a long time.”
Kentucky hasn’t taken RG ‘seriously’ 4v1hp
Among the issues that responsible gambling advocates point to in Kentucky in particular is the state’s lack of gambling education infrastructure.
The state’s new law creates a problem gambling fund for which 2.5% of annual sports betting tax revenue is earmarked. The could translate into about $575,000 per year if tax-revenue projections are accurate. When discussing the new law during the legislative session, bill sponsor Rep. Michael Meredith projected that the state would take in $23 million in tax revenue per year from legal wagering, and after expenses and an earmark for responsible gambling programs, the balance would be directed to the state’s pension fund.
For comparison, the state in 2022 took in $112.16 million in taxes from historical horse racing on $6.8 billion in handle. None of the 2022 HHR tax revenue was directed to responsible or problem gambling initiatives.
Problem and responsible gambling “in Kentucky is rudimentary, they are just now getting public funding and it will take probably a decade to get things up and running,” Whyte said. “That changes the calculus. Kentucky has not taken it seriously.”
