Kentucky, a state where gambling is deeply rooted in its identity through such sporting events like The Kentucky Derby that is coming up on its 151st year, is undergoing a seismic shift in how it addresses the challenges of problem gambling.
The expansion of legalized gambling—spanning the Kentucky Lottery, parimutuel wagering, historical horse racing (HHR) machines and now online sports betting through mobile applications like FanDuel and DraftKings—has led to a cultural and economic boom. However, alongside this growth lies a rising tide of addiction, mental health challenges and societal costs.
The Kentucky Council on Problem Gambling (KYCPG) is stepping up to address these challenges. Through public awareness campaigns, legislative advocacy and partnerships, KYCPG is working to stem the tide of addiction, rebuild lives and reduce the significant social costs of gambling in the Commonwealth.
The Gaming Commonwealth
Kentucky’s relationship with gambling runs deep. The state’s annual legal gambling expenditures exceed $2 billion, with $400 million in tax revenues filling state coffers.
For many, gambling is a pastime—a few lottery tickets, a bet on the Kentucky Derby or a night at a casino. But for a growing number of Kentuckians, gambling has spiraled into addiction, tearing apart families, finances and futures.
A recent survey found that 78% of Kentucky adults participated in gambling in the past year, equating to over 2.5 million residents. Shockingly, this isn’t just an adult problem: 26% of high school seniors admitted to gambling at some point in their lives, and 2% reported financial or personal harm caused by their gambling.
Between 47,000 and 64,000 Kentuckians are classified as gambling addicts, while as many as 165,000 exhibit problem gambling traits. Problem gamblers are more likely to suffer from depression, anxiety, or PTSD, and 19% have considered suicide. For addicted gamblers, the suicide rate is even higher than any other form of addiction.
“We’ve already seen the impact of calls to the 1-800- GAMBLER helpline due to the increased public awareness created by the volume of sports gambling and lottery advertisements, all of which include the helpline number and words to the effect,” said Mike Stone, Executive Director of KYCPG. “As the stats reflect the amount of gambling in KY before sports betting, there always have been gamblers in the state. Now, there is more awareness that excessive gambling can be a problem, maybe even an addition. The calls to the helpline follow.”
Funding Help for Addiction
The legalization of sports betting in Kentucky in 2023 marked a turning point. Signed into law by Governor Andy Beshear, House Bill 551 allocates 5% of sports betting revenue to the newly created Problem Gambling Assistance Account. This fund—starting with an estimated $1 million—will be used to establish publicly funded problem gambling education, prevention, and treatment programs.
“KYCPG is submitting proposals to the Department of Behavioral Health, Developmental and Intellectual Disabilities to fund counselor training programs from the newly available Problem Gambling Assistance Account,” Stone said. “At that time, Kentucky’s commitment to fund problem and disordered gambling services will be significantly increased.”
While the funding represents a major step forward, it remains a fraction of what is needed. National averages suggest that states spend $0.28 per capita on problem gambling services. For Kentucky, with its population of approximately 4.5 million, that would equate to $1.2 million annually.
Modern Gambling’s Impacts on the Average Bettor
The rise of digital platforms like FanDuel and DraftKings, coupled with the popularity of mobile apps, has fundamentally altered the gambling landscape. Today, gambling can be accessed from the palm of a hand, creating new challenges for regulators, treatment providers, and public health advocates.
“It is too early to make any general conclusions. We need to see what is funded and the results from the proposals submitted to the Problem Gambling Assistance Account,” Stone noted. However, he acknowledged the need for constant vigilance: “The biggest challenge may be just staying abreast of technology and its impact on gambling and then gambling’s impact on society.”
This ubiquity of gambling increases risk. Studies have shown that proximity and opportunity are among the strongest predictors of gambling addiction. With online gambling now more accessible than ever, the stakes are higher.
Human Costs of Gambling in the 21st Century
Beyond the financial devastation of problem gambling—where gamblers frequently rack up debts exceeding $43,000—there are far-reaching consequences for families, workplaces, and communities.
A KYCPG needs assessment highlighted the cascading effects of gambling addiction:
- Family Impact: Problem gambling is linked to domestic violence, divorce and severe financial strain. Research has found that children of problem gamblers are up to 10 times more likely to develop gambling problems themselves.
- Crime: Gambling addiction often drives individuals to illegal activities, including embezzlement, fraud and even violent crimes. One-third of gambling addicts admitted to committing robbery, and 13% reported assaults to obtain gambling money
- Suicide: The suicide rate among problem gamblers is higher than any other addictive disorder. KYCPG President RonSonLyn Clark underscored the importance of suicide screening, saying, “It is a primary duty of care for the client because the suicide rate of problem gamblers is so high, and they are so effective at keeping their addiction hidden”
Kentucky is making strides toward addressing the issue of problem gambling in the Commonwealth. KYCPG has spearheaded efforts to train certified gambling counselors, investing $35,000 to expand the state’s counseling workforce. While this initiative has increased the number of certified counselors from six to 11, the state still falls short of the 14-24 counselors recommended for its population size
Education and prevention are also key. KYCPG’s “Whether, When, How Much?” campaign promotes responsible gambling habits, while partnerships with schools and community organizations aim to reduce youth gambling rates. These efforts have shown promise: since gambling awareness initiatives began, high school gambling rates have dropped by nearly half.
KYCPG is advocating for a statewide prevalence study to identify the demographics, geographic spread, and scale of gambling addiction.
“That is one of the proposals being discussed for possible funding through the Problem Gambling Assistance Account,” Stone said in an email to LEO Weekly.
KYCPG’s Call for Collaboration
KYCPG recognizes that tackling problem gambling requires a unified approach. The organization has already established partnerships with the Department of Behavioral Health, Developmental and Intellectual Disabilities, the Kentucky Mental Health Coalition, and the Kentucky Coalition for Healthy Children.
“As groups gain an understanding of gambling’s impact, we anticipate forming more partnerships,” Stone said.
For those in need, help is available 24/7 at 1-800-GAMBLER. The road to recovery may be long, but for thousands of Kentuckians, it starts with a single call.
This article appears in Jan 17-30, 2025.
