Kentucky Horse Racing & Gaming

What Kentucky Horse Racing & Gaming does

Kentucky Horse Racing & Gaming Corporation (KHRG) is an independent, de jure municipal corporation and political subdivision of the Commonwealth of Kentucky that serves as the sole state regulatory authority over horse racing, pari-mutuel wagering, sports wagering, breed integrity and development, and charitable gaming within Kentucky. The agency is headquartered at 4047 Iron Works Parkway in Lexington, Kentucky (within the Kentucky Horse Park area), with additional licensing offices at the Red Mile in Lexington, Churchill Downs in Louisville, and Oak Grove, and a staff of 51-100 employees led by President & CEO Jamie Eads. KHRG was re-established under its current corporate form to consolidate what had previously been the Kentucky Horse Racing Commission, and it administers an extensive portfolio of regulatory services including licensing of jockeys, trainers, and owners; equine health and medication oversight (drug testing, bleeder lists, mortality reviews, out-of-competition testing); integrity enforcement via a toll-free hotline; the Kentucky Breeders' Incentive Fund (established 2005, financed by a 6% breeding sales tax with an 80/13/7 distribution); and sports wagering oversight implemented after passage of House Bill 551 in 2023.

KHRG's revenue mechanics are non-commercial in nature, consisting of statutory licensing fees (e.g., $6 per racing license badge plus a $4 credit card administrative fee), the 6% breeding sales tax routed to incentive funds, and excise tax collections from licensed sports wagering operators following the September 2023 retail and mobile launch. The agency does not sell a product or commercial technology; its go-to-market is administrative licensing and regulatory compliance delivery through physical offices at race tracks, a central headquarters, and an online portal. Its customer base consists of regulated industry cohorts — horse racing participants, sports wagering operators, charitable gaming organizations, and the wagering public — rather than paying commercial customers. Key operational technology is limited to administrative systems for licensing, drug testing, and wagering reporting; no API, SDK, or AI/ML capability is disclosed.

In 2025, KHRG extended its mandate to quarter horse racing by establishing the Kentucky Quarter Horse Development Fund (KQHDF) under KRS 230.405 and 810 KAR 7:080, with the Kentucky Quarter Horse Racing Association appointed as sole official registrar. The agency's strategic trajectory is one of regulated expansion of mandate, driven by legislative action (HB 551) and industry development initiatives rather than market-driven growth, and bounded geographically to Kentucky.

Name

Kentucky Horse Racing & Gaming

Legal name

Kentucky Horse Racing and Gaming Corporation

Website

https://khrc.ky.gov

Company type

Private

Operating status

Operating

Headcount range

51–100 employees

Short description

Kentucky Horse Racing & Gaming is a state regulatory agency that licenses and oversees horse racing, pari-mutuel wagering, sports wagering, breed integrity, and charitable gaming across Kentucky, headquartered in Lexington.

Ownership category

akta.pro rank

Product category

Horse Racing and Gaming Regulation

NAICS

Racetracks (711212), Gambling Industries (7132), Horses and Other Equine Production (11292)

SIC

Services-Racing, Including Track Operation (7948)

akta.pro primary industry

Racing Associations, Governance & Integrity Services (MPAEADAL)

akta.pro secondary industries

Online Horse Racing Betting (Advance Deposit Wagering/ADW) (MPAEADAD), Peer-to-Peer Horse Racing & Pari-Mutuel Exchanges (MPAEAIAB), Training, Stables & Equine Services (MPAEADAI)

Keywords

• Horse racing regulation
• Sports wagering licensing
• Pari-mutuel wagering oversight
• Equine health regulation
• Charitable gaming oversight

Headquarters

HQ city

Lexington

HQ country

United States

HQ region

North America

Offices4 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. Regulatory Licensing Fees: KHRG collects licensing fees from horse racing participants (jockeys, trainers, owners), sports wagering operators, and charitable gaming organizations. Standard license badge fee is $6 total ($4 processing fee plus $2 postage) with $4 administrative fee for credit card payments.
2. Pari-Mutuel Wagering Regulation: The agency oversees pari-mutuel wagering operations and collects taxes from breeding incentives through a 6 percent sales tax on breeding a mare to a stallion in Kentucky.
3. Sports Wagering Excise Tax: Following House Bill 551, sports wagering operations are regulated with excise taxes collected from licensed operators. Retail locations opened September 7, 2023, and mobile applications opened September 28, 2023.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels3 records

Core offering

Kentucky Horse Racing & Gaming (KHRG) is an independent, de jure municipal corporation and political subdivision of the Commonwealth of Kentucky that regulates horse racing, pari-mutuel wagering, sports wagering, breed integrity and development, and charitable gaming in Kentucky. The agency issues licenses to racing participants, oversees equine health and drug testing, administers breeder incentive funds, and operates an integrity hotline for anonymous violation reporting.

Product overview

Kentucky Horse Racing & Gaming Corporation (KHRG) is a government regulatory agency structured as an independent municipal corporation that oversees all horse racing, pari-mutuel wagering, sports wagering, breed integrity, and charitable gaming in Kentucky. The agency operates regulatory services including horse racing oversight, sports wagering regulation (launched September 2023), equine health and medication testing, racing licensing, and breeder incentive programs. KHRG maintains an Integrity Hotline for reporting violations and provides public records access. The organization does not offer commercial products but rather regulatory and administrative services to the Kentucky horse racing industry.

Differentiator

Problem solved

Functional benefit

Products and services

• Horse Racing Regulation
• Sports Wagering Regulation
• Pari-Mutuel Wagering Oversight
• Charitable Gaming Regulation
• Racing Licensing
• Kentucky Breeders' Incentive Fund
• Kentucky Quarter Horse Development Fund (KQHDF)
• Integrity Hotline
• Open Records Services

Quantifiable outcome

• 6% breeding sales tax generates incentive fund for Kentucky horse industry development
• +1 more outcomes

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Three partnerships are on record, tiered core.

• Kentucky Quarter Horse Racing Association (KYQHRA)coreOthers · 1 January 2025KYQHRA is recognized as the sole official registrar for the Kentucky Quarter Horse Development Fund (KQHDF). KHRG appointed KYQHRA to handle nominations and registrations for the fund, which provides purse supplements for Kentucky-bred quarter horses and breeder awards.
• Revolutionary Racing (Sandy Ridge)coreOthers · 1 July 2022In July 2022, KHRG awarded a racing and gaming license to Revolutionary Racing for a new facility in Ashland, Kentucky. This quarter horse racing and gaming facility honors the tradition of quarter horse racing and brings the sport to the northeast corner of the state.
• Office of Charitable GamingcoreOthersKHRG maintains a connection with the Office of Charitable Gaming, which handles charitable gaming regulation under the broader KHRG regulatory umbrella. Both entities serve the Commonwealth's gaming regulation needs.

Scale indicators3 records

Recent moves5 records

Expansion highlights4 records

Broad incumbents

• Pennsylvania Gaming Control Board: Combined gaming and horse racing regulator in Pennsylvania, overseeing sports wagering, casinos, and pari-mutuel racing. Comparable to KHRG since PA also merged racing regulation into a broader gaming commission model.
• Illinois Gaming Board: Illinois state agency regulating casino gaming, video gaming, and sports wagering. Comparable to KHRG given similar multi-vertical state regulatory mandate and recent sports wagering expansion.
• New Jersey Division of Gaming Enforcement: New Jersey state regulator overseeing casino gaming, internet gaming, and sports wagering. Comparable to KHRG in scope, with comparable licensing and oversight responsibilities for sports wagering operators.
• New York State Gaming Commission: State regulatory body that oversees horse racing, pari-mutuel wagering, lottery, and casino gaming in New York. Comparable to KHRG as a state-level gaming and racing regulator with a similar multi-vertical mandate, though operating in a larger market.
• Ohio Casino Control Commission: Ohio state body regulating casinos, sports wagering, and skill-based amusement machines. Comparable to KHRG as a state-level gaming oversight body that recently expanded into sports wagering regulation.
• Florida Gaming Control Commission: Florida state regulator overseeing pari-mutuel wagering, slot machines, card rooms, and sports wagering. Comparable to KHRG as a state-level racing and gaming regulator with expanded sports wagering scope.

Direct peers

• West Virginia Racing Commission: West Virginia state body regulating horse and dog racing, pari-mutuel wagering, and historical racing. Comparable to KHRG as a smaller-state racing regulator with pari-mutuel oversight responsibilities.
• Louisiana State Racing Commission: Louisiana state regulator overseeing thoroughbred, quarter horse, and standardbred racing along with pari-mutuel wagering. Comparable to KHRG given the equivalent multi-breed racing regulation and licensing structure.
• California Horse Racing Board: California state agency regulating thoroughbred and standardbred racing, including licensing, equine health, drug testing, and pari-mutuel wagering oversight. Most directly comparable to KHRG given the equivalent horse-racing regulatory scope and licensing structure.
• Indiana Horse Racing Commission: Indiana state agency regulating horse racing, pari-mutuel wagering, and casino gaming at racetracks. Most directly comparable to KHRG as a Midwestern neighbor with a similar horse-racing-centric state regulatory mandate.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/ppckentucky
• Facebookfacebook.com/kyhorseracing
• LinkedInlinkedin.com/company/kentucky-racing-commission

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Kentucky Horse Racing & Gaming