One of just four designated Commonwealths in the US, Kentucky is the 37th largest state and 26th most populated with 4,395,295 residents (est. 2013). The most famous landmark in the Bluegrass State is Churchill Downs, the home of the Triple Crown thoroughbred horse racing event, the Kentucky Derby. In fact, the state got its nickname from the excellent grade of grasslands, perfectly suited for ranching. As such, Kentucky is brimming with livestock, including horses, cattle and goats. And while pari-mutuel betting is always in the limelight, there are no other regulated forms of gambling in the state outside of the Kentucky Lottery.
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For online poker players, it raises the question of whether playing over the internet for real money is illegal. History has proven time and again that, just because something isn't expressly legal doesn't make it illegal by default. In many state, online poker falls into a grey area due to antiquated statutes. This article will examine the laws of gambling and online poker in Kentucky to determine which category it falls into.
There is currently no legislation permitting online poker in the state. Current Kentucky Gambling Laws Kentucky has traditionally taken a hard stance against gambling outside of its three racinos. It's a bit of a moot question from a player perspective, as Kentucky has chosen not to criminalize the act of participating in gambling as a player - meaning that playing poker for real money shouldn't ever land a mere participant in trouble with Kentucky authorities. Residents of Kentucky that are 21 years of age are allowed to gamble in online casinos, online sportsbooks, and online poker rooms. These age requirements are strictly enforced and those caught gambling online or offline under the ages stated above may face arrest or prosecution. The problem with online poker in Kentucky stems from the laws regarding operators and their ability to host and rake poker games. Profiting from gambling is not allowed, so based on that, online poker is automatically ruled out. Not only that, but Kentucky tried to seize gambling related domains (2009-2012).
Land-based Gambling in Kentucky
Government officials in Kentucky have no problem generating tax dollars from gambling, as is evident by the abundance of pari-mutuel horse racing facilities in the area that date as far back as the late 18th century. The Kentucky Lottery has been running strong since 1989, and charitable bingo games are also a popular pastime for residents. But because casino gambling and poker are not on the menu, it could spell disaster for online poker players in Kentucky. To determine the legalities of iGaming, we must turn directly to the state's legislative arena.
Deciphering the Laws of Kentucky as they relate to Online Poker
Chapter 528 of the Kentucky Revised Statues deals with all things related to gambling. The following excerpts were taken directly from that chapter as they may pertain to the legalities of online poker. A brief description of each passage is provided for convenience.
| Section | Text | Meaning (in re online poker) |
| 528.010 Definitions | (3) (a) 'Gambling' means staking or risking something of value upon the outcome of a contest, game, gaming scheme, or gaming device which is based upon an element of chance, in accord with an agreement or understanding that someone will receive something of value in the event of a certain outcome. A contest or game in which eligibility to participate is determined by chance and the ultimate winner is determined by skill shall not be considered to be gambling. | Any game in which an element of chance is present is considered gambling. Games of skill where the players are chosen at random are not illegal. Poker is generally considered a game of skill with an element of chance, thus the first definition (i.e. illegal) would most likely apply. |
| (4) 'Gambling device' means: (a) Any so-called slot machine or any other machine or mechanical device an essential part of which is a drum or reel… by the operation of which a person may become entitled to receive, as the result of the application of an element of chance, any money or property; or (b) Any other machine or any mechanical or other device…designed and manufactured primarily for use in connection with gambling and which when operated may deliver, as the result of the application of an element of chance, any money or property… | A computer or mobile device cannot be classified as a gambling device because it has multiple uses and is not primarily designed for gambling. | |
| (7) 'Player' means a person who engages in any form of gambling solely as a contestant or bettor, without receiving or becoming entitled to receive any profit therefrom other than personal gambling winnings… The status of a 'player' shall be a defense to any prosecution under this chapter. | A player is defined as someone who only gains from gambling by personal winnings. Being a player is not considered ‘profiting from gambling'. |
Is Online Poker Illegal in Kentucky?
No. Although online poker is not regulated in Kentucky, there is no evidence to support a prohibition against the activity. The only gambling related crimes that enforce a penalty are those that involve profiting from gambling. To profit is to make money outside of personal gambling winnings, such as being paid to promote a game. Being a 'player' is not listed as a crime.
The definition of gambling device includes only slot machines and devices designed so that gambling is the primary use, such as roulette wheels or keno machines.
The definition of gambling may or may not include poker, based on whether a judge considers poker a game of skill with or without an element of chance. But again, with no penalty imposed upon players, online poker should not be deemed illegal in Kentucky.
In a document entitled Issues Confronting the 2012 Kentucky General Assembly, even state lawmakers were confused as to whether online poker was illegal in the state. Due to the verbiage of the UIGEA, which made it illegal to wager over the internet on games of chance (not skill), officials wrote, 'it is unclear whether online poker constitutes unlawful Internet gambling.'
Is Kentucky working to Legalize Online Poker?
Not yet. A lot of online gambling related issues have arisen in Kentucky, dating back shortly after passage of the UIGEA. In September of 2008, the Commonwealth seized control of 141 so-called illegal online gambling domains, citing that Kentucky was losing tens of millions of dollars a year to online gambling. That same year, the governor supported a land-based casino bill, but legislators voted it down. Yearly rejection of bills designed to bring casino gambling to the state has become a pattern ever since.
It is doubtful that Kentucky will move to regulate online poker anytime soon; at least not before the state manages to get a land-based casino industry up and running. Once that happens, the addition of online poker and/or casino gaming will likely be based upon competition. At present, only Delaware, Nevada and New Jersey offer iGaming markets; none of which are too close to the borders of Kentucky. But by the time brick-and-mortar casinos come to the Bluegrass State, the outlook could be a lot brighter.
Online Poker Players from Kentucky
Like every other state, Kentucky is the home to a number of online poker players, some who've recorded a great deal of success in the profession. One of the more prominent names is Brad 'riggsb' Riggs of Bowling Green, KY, who's racked up nearly $1 million at both PokerStars and Full Tilt combined. Other high-profile online poker players from Kentucky include Daniel 'D.scroggins' Scroggins and Joe 'jhizzle24' Hook.
Land-Based Card Rooms in Kentucky
None. Kentucky is home to more than half a dozen pari-mutuel racing facilities, including Churchill Downs, but no casinos or racinos have been authorized. The state does not even have any tribal casino establishments to speak of.
If we had to pick one word to describe Kentucky's position towards gambling expansion, it would be ambivalent. On one side of the fence, the state's most powerful horse racing and casino company, Churchill Downs Inc., appears largely in favor of expanding into both the land-based and digital casino realms. Kentucky Governor Steve Beshear also views brick & mortar casinos as a viable and untapped revenue stream.
That being said, the legislation's position towards Internet gambling is less than favorable – far less. To illustrate: In 2011, the Commonwealth attempted to seize the four biggest online poker sites in the world, under the premise that the state was the sole owner of the property. And three years earlier, the Governor convinced a Kentucky judge to confiscate 141 Internet gaming domains [1]; his reason being that online gaming pulled gamblers away from Kentucky's horse racing and charitable gaming venues.
So where does that leave online poker? Until Kentucky's gambling interests can first agree on a way to introduce casinos, probably nowhere. And even then, the Governor and at least one State Senator (Mike Wilson) will likely oppose any efforts to bring gambling online.
Then again, Churchill Downs, who also owns poker Bluff Magazine parent company BLUFF Media, is already prepping an online gaming platform. [2] And with an online lotto set to go live sometime in 2015, it's apparent that Kentucky sees at least some benefit in online gaming. Whether that will translate into an online poker legislation push somewhere down the line is anyone's guess.
Can Players from Kentucky Play Real-Money Online Poker?
Horse racing is the crown jewel of Kentucky's gambling industry, and in the eyes of government, must be protected at all costs. Unregulated gambling sites, in particular, have witnessed firsthand the lengths Kentucky officials will traverse in order to halt their operations. So instead of dealing with potential seizures and other legal hassles, some US-facing poker sites have opted out of Kentucky. Others simply changed their domain name.
Suffice it to say, finding an online poker site in Kentucky is more difficult than in the average US state. The situation differs in Europe, where players often have access to the best poker sites. And in many European countries, online poker is regulated by government.
Is Online Poker Legal in Kentucky?
Technically speaking, there is no clause in Kentucky's gambling statutes that explicitly prohibits players from gambling over the Internet, or gambling anywhere for that matter.
Instead, the law primarily targets unregulated gambling operators, and as we've already seen, the state doesn't take too kindly to unlicensed facilities accepting wagers from Kentucky residents.
For better clarity, we first look to how the state defines gambling
; Section 528.010(3a):
Gambling means staking or risking something of value upon the outcome of a contest, game, gaming scheme, or gaming device which is based upon an element of chance, in accord with an agreement or understanding that someone will receive something of value in the event of a certain outcome.
Although the aforementioned strongly suggests that any game involving even a hint of chance runs afoul of the law, Kentucky actually implements the Dominant Factor Test to determine what is and is not a gambling game. As a game consisting of at least some skill, poker resides in a murky grey area of the law.
In either case, players (defined below) are exempt from criminal liability ( Section 528.010(7) ):
Player means a person who engages in any form of gambling solely as a contestant or bettor, without receiving or becoming entitled to receive any profit therefrom other than personal gambling winnings, and without otherwise rendering any material assistance to the establishment, conduct, or operation f the particular. The status of a 'player' shall be a defense to any prosecution under this chapter.
Advancing or promoting gambling is a different story altogether, with operators facing a myriad of misdemeanor and felony charges depending on the size and type of the operation. Even those who intend to host an unregulated gambling game can be slapped with a Class D felony charge.
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The law implies that social poker is an acceptable practice, in so long as the house doesn't charge fees. And even then, only those profiting from the rake would be at risk.
Can You Play Online Poker For Real Money In Kentucky
Kentucky Gambling History
Kentucky's gambling lore is laced with legends of back alley saloons, iconic gamblers and crooked dealings. But by the late-1800s, it wasn't Kentucky's illegal gambling rings that were making headlines, but its newly-minted (legal) pari-mutuel wagering industry.
In 1875, Churchill Downs in Louisville held the first running of the Kentucky Derby. Fast forward a mere three years later, and the masses were placing bets on their favorite pony – a practice that has continued to this very day.
For the longest time, pari-mutuel wagering was the only legal form of gambling in Kentucky. That changed in 1988, when voters authorized via referendum the Kentucky Lottery Commission. The lottery industry started strong and got stronger, contributing $223.8 million to scholarship and grants programs in fiscal 2013 alone. [3]
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In the mid-2000s, Kentucky legislators began broaching the subject of land-based casinos, with proponents reasoning that the state was losing $500 million in potential revenue to casinos in nearby states. The debate came to a head in late-2013 when Louisville Dem. Larry Clark petitioned for the expansion of five horse tracks into racinos and construction of three standalone gambling facilities.
Unfortunately, for a variety of reasons, support for a constitutional amendment permitting casinos is currently on the decline – although the issue is still on the legislative radar. [4]
Regulated Gambling Options in Kentucky
For now, Kentucky casino enthusiasts are best served traveling to either Indiana or Ohio, where commercial casinos have been legitimized. However, those who enjoy horse racing couldn't live in a better locale. Kentucky also hosts a multi-jurisdiction lottery and a wide array of charitable gambling, which encompasses casino nights.
Other recent headlines
Kentucky is on pace to join the emergent list of states to institute an online lottery. In November 2014, the Kentucky Lottery Corp. met with gaming technological provider GTECH to hash out the details of a computer based system that will enable players to purchase tickets online by fall 2015. [5]
In other news, State Senator Mike Wilson is pushing for an amendment to current Kentucky gambling laws that will render unsanctioned Internet gambling illegal. It is presumed that the bill (BR229) will allow for a carve-out for both the online lottery and online horseracing. [6]
The Future of Regulated Online Gambling in Kentucky
While some industry analysts place the odds of Kentucky legitimizing online poker on par with a three legged pony winning the Derby, we'd argue that the prospect is not as far-fetched as it initially appears. Remember, Kentucky's actions against sites like PokerStars and Full Tilt Poker were based on the premise that they were siphoning money from the state's legal, and tax liable, gambling industry. But what if other states prove that regulated iGaming was a viable revenue stream; one that could complement its brick and mortar gambling landscape? Wouldn't that prompt Kentucky legislators to take the issue more seriously? Stranger things have happened.
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In the coming years, expect Kentucky to measure the performance of its nascent online lottery and the newly embraced Instant Winnings machines. If they outperform expectations, and if Churchill Downs and other pro-casino interests win the fight for land-based casinos, don't be surprised if someone submits an iGaming bill at some point down the road.
References
Poker Online Real Money Kentucky
- Jump up ^Commonwealth of Kentucky v. 141 Internet Domain Names
- Jump up ^New Lawsuit Against a 'Thief' Reveals Churchill Downs' Plans to Build Online Casino
- Jump up ^$223.8 Million in Record Dividends to the Commonwealth
- Jump up ^Ky casino supporters are increasingly mum
- Jump up ^Ky. lottery plans online ticket sales by fall
- Jump up ^Kentucky to Ban Internet Cafes
