Kentucky Legalizes Sports Betting; New Hampshire Ends iGaming Hopes for 2023

Earlier in the year I outlined the 2023 outlook for the legalization of sports betting. Kentucky proved to be the first state from the list to take action, as the Kentucky Senate adopted bill HB-551 into law. This bill legalizes sports betting in the state beginning June 29th. While it is unlikely the sports betting infrastructure will be operational by that date, it is expected that residents will be able to make legal wagers by the fall.

Kentucky is a favorable state for gamblers (it was unfavorable until a 2019 law allowed the deduction of gambling losses). It follows federal guidelines and allows a deduction for gambling losses as an itemized deduction, to the extent of gambling winnings.

Residents do not need to itemize at the federal level to itemize at the state level. Tax is assessed at a flat rate (4.5%) on all income, including gambling winnings.

New Hampshire was looking to join a short list of states to legalize iGaming and online poker. The state Senate passed bill SB 104, which would have legalized online baccarat, craps, roulette, blackjack, and (surprisingly) poker. The bill needed approval in the House of Representatives, but was, essentially, shut down by the Ways and Means Committee after a vote of 20-0. As a result of the vote, there will be no online gambling in New Hampshire in 2023. 

It’s unclear if New Hampshire would have been included in the Multi-State Internet Gaming Agreement (MSIGA), but it was a positive sign that poker was included with the rest of the game offerings. We now need to wait until 2024 to see if an online gambling bill can get any support from the state House of Representatives.

New Hampshire does not assess state tax on recreational gambling winnings. However, if you are filing as a professional gambler, you are subject to the state’s 8.5% business tax.