Any license may be revoked or suspended for the following causes:

1. (1) Conviction of the licensee or the licensee's agent, servant, or employee for selling any illegal alcoholic beverages or cannabis-infused beverages on the licensed premises.
2. (2) Making any false, material statements in an application or renewal application for a license or supplemental license.

3. (3) Conviction of the licensee or any of the licensee's agents, servants, or employees of:

   1. (a) Two (2) violations of the terms and provisions of KRS Chapters 241 to 244, or any act regulating the manufacture, sale, and transportation of alcoholic beverages or the sale, distribution, or transportation of cannabis-infused beverages within two (2) consecutive years;
   2. (b) Two (2) misdemeanors directly or indirectly attributable to the use of alcoholic beverages or cannabis-infused beverages within two (2) consecutive years; or
   3. (c) Any felony.
   4. (5)

4. (4) Failure or default of a licensee to pay an excise tax or any part of the tax or any penalties imposed by or under the provisions of any statutes, ordinances, or Acts of Congress relative to taxation, or for a violation of any related administrative regulations promulgated by the Department of Revenue.

   1. (a) Revocation of any license or permit provided in KRS 243.060, 243.070, 243.600, and 243.610, or granted under any Act of Congress relative to the regulation of the manufacture, sale, and transportation of alcoholic beverages.
   2. (b) Revocation of any license established under KRS 243.200, 243.403, or 243.405 relative to the sale, distribution, or transportation of cannabis-infused beverages.

   3. (6) Setting up, conducting, operating, or keeping, on the licensed premises, any gambling game, device, machine, contrivance, lottery, gift enterprise, handbook, or facility for betting or transmitting bets on horse races; or permitting to be set up, conducted, operated, kept, or engaged in, on the licensed premises, any gambling game, device, machine, contrivance, lottery, gift enterprise, handbook, or facility. This subsection shall not apply to:

      1. (a) The sale of lottery tickets sold under the provisions of KRS Chapter 154A;
      2. (b) The operation of a pari-mutuel system for betting, or the operation of sports wagering, where authorized by law;
      3. (c) The conduct of charitable gaming by a charitable organization licensed or permitted under KRS Chapters 230 and 238; or
      4. (d) Special temporary raffles of alcoholic beverages under KRS 243.036.

   4. (7) Conviction of the licensee, the licensee's agents, servants, or employees for:

      1. (a) The trafficking or possession upon the licensed premises of controlled or illegal substances described in KRS Chapter 218A, including synthetic drugs;
      2. (b) Knowingly permitting the trafficking or possession by patrons upon the licensed premises of controlled or illegal substances described in KRS Chapter 218A, including synthetic drugs; or
      3. (c) Knowingly receiving stolen property upon the licensed premises.
   5. (8) Failure to comply with the terms of a final order of the board.

Effective: July 1, 2025

History: Amended 2025 Ky. Acts ch. 82, sec. 24, effective July 1, 2025. -- Amended 2024 Ky. Acts ch. 171, sec. 103, effective July 1, 2025. -- Amended 2023 Ky. Acts ch. 147, sec. 18, effective June 29, 2023. -- Amended 2017 Ky. Acts ch. 61, sec. 5, effective June 29, 2017; and ch. 62, sec. 75, effective June 29, 2017. -- Amended 2012 Ky. Acts ch. 108, sec. 15, effective April 11, 2012. -- Amended 2005 Ky. Acts ch. 85, sec. 654, effective June 20, 2005. -- Amended 1998 Ky. Acts ch. 522, sec. 13, effective July 15, 1998. -- Amended 1992 Ky. Acts ch. 254, sec. 2, effective July 14, 1992. -- Amended 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 26, effective December 15, 1988. - Amended 1978 Ky. Acts ch. 194, sec. 18, effective June 17, 1978. -- Amended 1974 Ky. Acts ch. 11, sec. 1. -- Amended 1952 Ky. Acts ch. 111, sec. 1, effective February 21, 1952. -- Amended 1944 Ky. Acts ch. 154, sec. 19. -- Amended 1942 Ky. Acts ch. 168, secs. 4 and 13. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 2554b-134, 2554b-141. Legislative Research Commission Note (6/29/2017). This statute was amended by 2017 Ky. Acts chs. 61 and 62. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 62, which was last enacted by the General Assembly, prevails under KRS 446.250. Legislative Research Commission Note. (12/15/1988) Although references to the sale of "shares" were deleted in the Senate committee substitute, due to a clerical error, such reference was not deleted in subsection (7) of this section. The Reviser of Statutes, pursuant to KRS 7.136, has removed the words "or shares" to conform.