Funding Aimed to Help with Kentucky Sports Betting Problems is Now Available

Funds that will aim to help people and organizations address problems arising from the legalization of Kentucky sports betting are now available.

As the result of The Bluegrass State officially approving sports wagering back in 2023, a small portion of their tax revenue each year must be allocated toward The Problem Gambling Fund. The fund’s primary purpose is to help prevent and combat “unhealthy gambling behaviors.” Individuals and organizations who are affected or trying to aid the process can apply for money to “work on new initiatives or build on existing ones.”

Kentucky made the application process officially available to close out 2024. As Louisiana Public Radio (LPR) reports, the state plans to leave the funds open through June 2025. At that time, the department in charge, the Department for Behavioral Health, Developmental, and Intellectual Disabilities, is expected to reassess its available budget. 

Under the current laws for sports betting in Kentucky, a lion’s share of the tax revenue goes toward buoying the state’s pension fund. Just 5 percent of Kentucky sports betting tax revenue, meanwhile, is earmarked for gambling treatment and prevention. According to LPR,  The Problem Gambling Fund receives roughly half of that—or 2.5 percent of total revenue.

Whether this is enough to make a meaningful difference will be a matter of course. For now, though, it seems as if the state is still figuring out how all of this is going to work.

The Kentucky Sports Betting Problem Gambling Fund Has Yet to Receive a Ton of Applications

The Kentucky sports betting problem gambling fund has now been “live” for more than six months. During that time, officials overseeing it say there has yet to be a ton of interest. It is not totally clear whether this will change. 

Jacob Munoz from Louisiana Public Radio recently reported on the state of the program. From what he writes, it sounds like this initiative may take some time to gain traction:

“As of mid-December, two funding opportunities are available through it. One [is] to increase public awareness of the problem. Another [is] to train health workers. The fund is administered by the state’s Department for Behavioral Health, Developmental, and Intellectual Disabilities, part of the Kentucky Cabinet for Health and Family Services. Lisa Lee Williams, the cabinet’s chief of staff, told LPM News through email that as of mid-December, the healthcare training opportunity had yet to receive an application. She added that money from the fund, which was at nearly $1.3 million, had so far been used for internal costs, such as staffing.

“The Kentucky Council on Problem Gambling is one group preparing to apply for state assistance funds. Its executive director, Mike Stone, told LPM News that the group wants to use those to support its annual education and awareness conference. Stone also said that KYCPG is looking into submitting other funding proposals for counselor training and public awareness efforts.”

While this doesn’t amount to a ton of interest, KYCPG’s interest in public awareness and problem gambling prevention could be extremely valuable. Their agenda may even be fairly innovative relative to the industry.

Should We Expect a Heightened Focus on Problem Gambling Prevention Rather Than Treatment?

Problem-gambling programs are cropping up all over the country as online sports betting in the United States continues surging. So many of them, though, focus on treatment. Make no mistake, this is important—beyond critical. 

Still, more should be done to prevent problem gambling from arising in the first place. It will never be eradicated in full. That is why viable treatment options are so pivotal. But dedicating more time and financial resources to Kentucky sports betting education might go a long way toward winnowing down the number of issues that surface long term.

To be sure, this is not about dissuading people participating in Kentucky sports betting. When viewed through an entertainment lens, online sports betting in Kentucky has its place. But as a habit and addiction, it can be dangerous. 

Every state, not just Kentucky, should consider investing more in educating people on the perils of sports betting. And that process should likely start early on. Even if people are not of gambling age, the current climate exposes them to the industry nonstop. Arming them with a comprehensive standing of sports betting would give them tools to make responsible decisions once they reach legal gambling age. 

This seems to be a primary aim for KYCPG. And if so, we’d call that win for the Kentucky sports betting market. But we need to see these programs funded and in action before pumping our fists.

Could More Money be Placed into Problem Gambling Programs?

Looking at the Kentucky sports betting market, specifically, there is absolutely room for more problem-gambling funding. 

Figures on The Bluegrass State’s annual revenue vary. The folks over at LPR say Kentucky sports betting in 2024 generated around $46 million in tax revenue. Numbers from those who run Sportsbook Review place the total at $38.6 million.

Even if you work with the lower figure, the amount going toward The Problem Gambling Fund isn’t that much. With $1.3 million in current funding, this comes out to less than 3.5 percent of the state’s revenue. That share dips significantly if you work with the $46 million figure. 

Either way, it seems like more can be done. Sure, the state may want to see the results of the fund in action first. But the Kentucky sports betting market keeps setting volume records on an almost monthly basis. The industry is ingrained into society. And it isn't going anwyere. So along with every other state, Kentucky should be laser focused on both addressing and, ultimately, preventing the negative consequences associated with it.

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