Kansas Attorney General Derek Schmidt recently said a proposal that would legalize fantasy sports leagues would not violate the state constitutions’ ban on private lotteries. Schmidt’s non-binding legal opinion came at the request of state Rep. Mark Kahrs, who said he wanted Schmidt’s opinion because of uncertainty surrounding the proposal, not because he opposes fantasy sports.
Kahrs said he would not contest Schmidt’s determination, which noted the measure said the results of fantasy sports contests “reflect the relative knowledge and skill of the participants.” Schmidt did not say that all fantasy sports leagues would be acceptable under the state constitution, only those that would comply with the definition in the bill, requiring skill to control the final outcome. “There is no constitutional provision prohibiting such a league. A factual determination is required before a decision on a particular enterprise can be made,” Schmidt wrote.
Last August the Kansas Racing and Gaming Commission declared fantasy sports leagues to be illegal lotteries. However, commissioners said they do not plan any enforcement efforts and are not aware of any criminal prosecutions.
The Kansas Constitution bans lotteries or the sale of lottery tickets, but voters have approved exceptions for a state-run lottery, horse and dog race wagering, plus charitable raffles and bingo games. In addition, Kansas courts have interpreted “lottery” in a broad sense so it covers slot machines and casino games.
According to the Fantasy Sports Trade Association, in 2009 about 27 million players participated in fantasy sports. Today about 41.5 million Americans participate, spending an average of $111. Fantasy sports are illegal only in Arizona, Iowa, Louisiana, Montana and Washington.
