Kentucky Sweepstakes Casino Online: How Does Kentucky Gaming Laws Work & Is It Legal To Play Real Money Online Casino in KY?

Is it legal to play at online casinos in Kentucky?

When it comes to laws around online casinos in Kentucky, the state has explicit legislation that decrees any online casino gambling to be illegal. You can refer to the Kentucky Revised Statutes § 230.135, which contains detailed definitions of gambling and the state’s various laws around it. Here are some highlights from there that you should note:

“"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. 

"Gambling" includes playing or offering to play any game, contest, or competition utilizing a gambling device. "Gambling" does not include:

1. A contest or game in which eligibility to participate is determined by chance and the ultimate winner is determined by skill;

2. Charitable gaming which is licensed and regulated under the provisions of KRS Chapter 238;

3. Esports competitions;

4. Skill-based contests;”

As you can see, any real money online casinos in Kentucky with or without no deposit bonuses will not be granted a license to operate. That is because these casino sites fall under the legal “gambling” definition in the state and are, therefore, prohibited.

Which forms of gambling are allowed in Kentucky?

If you are a gambling enthusiast based in Kentucky, there is no need to be severely disappointed. There are plenty of other gambling activities that are legal and that you can explore in the state in a safe and regulated manner.

Here is the list of all the legal forms of gambling in the state:

• Pari-mutuel betting on horse racing
• Online sports betting
• Online state lottery
• Charitable games like raffles and bingo

Let’s explore the alternatives to online casinos in Kentucky in the section below.

Is it legal to play at sweepstakes casinos in Kentucky?

Like most other states in the country, there are no specific sweepstakes casino laws in Kentucky. Since sweepstakes casinos are fairly recent phenomena and typically tend to exist in a legal gray zone, you won’t find many explicit laws in various states that decree sweepstakes casinos as legal or illegal.

The short answer to the question is yes, sweepstakes casinos are tolerated and allowed to operate in the state of Kentucky, as long as they don’t promote any sort of "gambling." This is the key distinction that allows sweepstakes casinos to operate in the state of Kentucky, while online casinos that have real money games are not allowed to operate in the very same state.

Let’s look at what the key compliance measures are for sweepstakes casinos in Kentucky:

To summarize, sweepstakes casinos are considered legal and are allowed to operate freely in Kentucky as long as they remain compliant with sweepstakes rules in Kentucky.

Do sweepstakes casinos operating in the state of Kentucky need to be licensed?

Sweepstakes casinos operate on a completely different model compared to real money casinos.  If they were legalized in the state legislation, there would have surely been an institution that gave out licenses for these sweepstakes casinos in Kentucky to operate.

However, since there are no specific laws that deal with the legalization of sweepstakes casinos in Kentucky, there is no regulation or system of licensing that is designed to serve this specific industry. As a result, sweepstakes casinos can operate in Kentucky without needing an official state license.

While this allows for more and more sweepstakes casinos to pop up in the state and keeps the competition healthy while offering more options to the consumer, there is also the risk of malicious sites fooling innocent Kentuckians into believing that they are legit sites.

In recent years, there have been several lawsuits against social gaming sites in Kentucky, on the logic that the gameplay model is a “thing of value.” Players cannot continue to play games for free once they run out of virtual coins, forcing them to buy coins on the site. In the last 3 years, class action settlements by three social gaming companies have totaled over $14 million.

As a player, you should be fine because the lawsuits are against the game developers and sites and not consumers. However, these lawsuits just go on to show that the state is regulating these sites more seriously, especially if they have a predatory business model that violates the states’ “gambling” laws.

How do you identify which sweepstakes casinos are legit?

Given the lack of a state license to distinguish a legitimate sweepstakes casino in Kentucky from a malicious site, the onus of researching the site falls squarely on your shoulders.

Don't worry, it's not that hard to figure out which site is a proper sweepstakes casino and which site is just trying to scam you.

Here are a few tips to help you assess the security and trustworthiness of new sweepstakes casinos:

It is always better to be safe than sorry. We highly recommend that you spend those extra 10 minutes and research a site thoroughly before you sign up for new sweepstakes casinos.

What potential future updates on online casinos in Kentucky can the people expect?

The future of online casinos in Kentucky looks pretty bleak. Considering that the state is tamping down on Kentucky sweepstakes casinos, it is unlikely that the legalization of real money online casinos will be on the charts anytime soon. However, some developments give us hope that the state’s attitude towards online gambling is changing:

• The sports betting legalization effect: Sports betting was legalized in Kentucky in 2022. Both retail and online sports betting have been legalized in the state. One can only hope that after seeing the huge revenue potential of legalizing online sports betting, lawmakers in the state might change their minds on online casino legalization as well.

We do not have any specific developments in the Kentucky legislature to report as of now on the issue of online casino legalization. At this point, everything is largely conjecture but stay tuned to this page to find out about any future developments.

No-deposit bonus playthrough requirements in Kentucky

If you want to play sweepstakes games in Kentucky, you are in luck. Several well-reputed sweepstakes casinos operate in the state and have a slew of no-deposit bonuses that you can claim.

One of the easiest bonuses to claim is the no-deposit welcome bonus, which is a standard bonus that you will find on any new sweepstakes site that you sign up to for the first time. For example, the welcome bonus at High 5 Casino contains 5 free SC, 250 Game Coins, and 600 diamonds. You can claim this bonus by simply signing up but to make your SC coins eligible for redemption, you will need to play them at least once.

Below, we have a comprehensive list of the best no-deposit bonuses and their respective playthrough requirements for Kentucky sweepstakes casinos.

What are users saying about playing online casinos in Kentucky?

Kentucky is a fairly conservative state when it comes to their laws and their ideas of morality. In many other states, online gambling is becoming more and more tolerated but the same cannot be said for Kentucky.

When we went to Reddit to look for opinions and experiences of players with the laws in Kentucky, we found threads with a lot of frustration regarding the prohibition of online gambling in the state.

For example, in the thread below, the person complains about how they would like to play poker or start a poker establishment but cannot do so because of the ‘oppressive laws’ in the state. In the comments, we found a lot of other commenters expressing their sympathy and their frustration with the state of anti-gambling laws in Kentucky.

Besides the prohibition of online gambling in Kentucky, we are also seeing the latest popular trend of lawsuits being brought against social gaming sites. Someone posted about the class action lawsuit brought against Pulsz.

The lawsuit resulted in the parent company having to pay an additional $3.6 million settlement on top of a former settlement of $1.32 million. They were fined for selling in-game currency, which violates the anti-gambling policy in Kentucky.

In-game currency isn’t necessarily a new thing and is actually sold by most social casinos out there. However, it seems like, unlike other states, Kentucky is taking a more rigid approach to disciplining sweepstakes casinos that are selling in game currency because they feel that it is the equivalent of promoting gambling among the players.

Final thoughts on online casinos and sweepstakes casino sites in Kentucky

Online casinos that promote real money gambling are strictly illegal in Kentucky. Sweepstakes casinos offer a good alternative to gaming enthusiasts, but unfortunately, even sweepstakes sites are being strictly monitored and fined for selling in-game currency.

If you are based in Kentucky and want to play at sweepstakes sites, we think you can still do so without any real danger because the lawsuits are mostly against the companies offering these sweepstakes casino slots games and not the players who are accessing them Just be careful about the sites that you're accessing and make sure they are reputed sweepstake sites.

Kentucky Legal Sweepstakes Casino FAQ

Disclaimer: Kindly note that we are not legal or tax experts. While we always strive to present the most accurate information, this is not binding legal advice. Always reach out to a licensed lawyer or tax advisor when in doubt.