TLDR
- Kentucky passed HB 904, allowing tracks to offer fixed-odds horse racing wagers alongside traditional parimutuel betting
- The law takes effect mid-July 2026, but regulations still need to be created before any track can offer fixed-odds
- Churchill Downs confirmed it will not offer fixed-odds wagering at any of its racetrack properties
- Lawmakers say fixed-odds betting could attract younger bettors and allow cross-sport parlays with football and basketball
- Other Kentucky tracks like Keeneland, Kentucky Downs, and The Red Mile could be the first to adopt fixed-odds racing
Kentucky has a new law on the books that will allow horse racing tracks in the state to offer fixed-odds betting. But the biggest name in Kentucky racing wants nothing to do with it.
House Bill 904 passed the Kentucky General Assembly and was enacted on April 14 after lawmakers overrode a veto from Gov. Andy Beshear. The law includes several provisions related to horse racing wagering, including one that opens the door for fixed-odds betting at the state’s tracks.
The timing comes just ahead of Kentucky Derby 152, which takes place Saturday at Churchill Downs in Louisville. The race is expected to draw upwards of a quarter-billion dollars in bets on the 20-horse field.
All of that money will flow through the traditional parimutuel system. That system pools all bets together, takes out a percentage for the track, and divides the rest among winning bettors.
Fixed-Odds Aims to Solve a Growing Problem
Parimutuel wagering has faced criticism in recent years because of computer-assisted wagering services. These services place millions of dollars in bets across the country, often near the start of a race.
That late money causes expected payouts to drop for bettors who placed their wagers earlier. Final odds can shift during the race itself, frustrating regular bettors who feel the system works against them.
HB 904 tries to address that. It requires updates to totalizer technology so odds boards refresh faster. It also mandates that all types of wagering close at the same time, whether it’s a $2 exacta or a large computer-generated bet.
The fixed-odds provision goes a step further. It would let bettors lock in their price at the time they place their bet, similar to how sportsbooks work.
State Rep. Michael Meredith, who sponsored the bill, told Gambling Insider the provision came after talking with stakeholders who attend international races. Fixed-odds racing is common outside the United States.
Meredith said fixed-odds could also help bring in younger bettors who are already familiar with sportsbook-style wagering. He pointed to the possibility of cross-sport parlays combining horse racing with football or basketball.
“We saw it as a way of maybe getting the younger generation to be more excited about horse racing,” Meredith said.
Churchill Downs Stands Firm Against Fixed-Odds
Despite the new law, Churchill Downs has made its position clear. The company told Gambling Insider on Thursday that it will not offer fixed-odds wagering at any of its racetrack properties.
Churchill Downs CEO Bill Carstanjen has previously said he supports parimutuel wagering because of the inefficiencies that come from people betting against each other.
There is also a financial reason. In parimutuel betting, tracks take a percentage of the pool before paying winners. That takeout typically ranges from 15% to 25% and covers costs and purse money. Tracks are guaranteed to keep that amount no matter which horse wins.
Fixed-odds margins are smaller, and a profit is not always guaranteed for the operator.
Churchill Downs controls nearly all of Kentucky’s year-round thoroughbred racing calendar through its Louisville track, Turfway Park, and Ellis Park. It also operates a harness track in Oak Grove.
The law does not require any track to offer fixed-odds. It only gives them the option. Tracks would need to partner with a service provider to handle the fixed-odds platform.
HB 904 officially takes effect in mid-July. After that, the Kentucky Horse Racing and Gaming Corporation will need to create regulations. That process means fixed-odds betting likely won’t be available until sometime in 2027.
Other operators like Keeneland, The Red Mile, Kentucky Downs, Cumberland Run, and Revolutionary Racing could be the first to try it. Kentucky Downs previously led the way on historical horse racing before Churchill Downs eventually followed with Derby City Gaming in 2018.
