The Kansas Senate Federal and State Affairs Committee recently held a hearing on SB 283, which would legalize sports betting through the state’s four casino properties’ retail sportsbooks plus add mobile betting. Representatives from the state’s four casino operators testified in support of the bill.
Last year, the bill died due to disagreements over which department would run the betting and manage mobile gaming apps. The legislation would require a major compromise between the Kansas Lottery and casino operators and state regulators. The state constitution requires the Lottery to oversee run Kansas gambling. Committee Chairman state Senator Bud Estes said, “There’s a lot of players involved, excuse the pun. But I feel confident that this year there will be a bill done, a solution passed.”
Attorney Matthew Bergmann, representing Boot Hill Casino and Kansas Crossing Casino, said, “We believe sports wagering would be a very substantial amenity to the existing casino operations. It will increase tourism to the casinos and the specific zones designated by law, and also it will increase revenues to the state of Kansas.”
The measure includes a 7.5 percent tax on gross gaming revenue for in-person wagers and a 10 percent rate for online bets. State budget estimates show $500 million in annual sports bets, ultimately leaving $25 million for taxes, fees and profits. The state would realize $2.25 million.
The new bill would allow only people physically located in Kansas to gamble through an app, which casino companies or the state lottery would operate. In-person registration would not be required. The legislation does not include integrity fees or royalties or mandates that licensees purchase official league data. The Kansas Lottery would oversee sports betting and would be required to be the licensee or owner of any sports betting software.
In addition, the measure would allow for two skins or online brands per operator, and would legalize sports betting for gaming facility managers and potentially sports facilities, defined as “auto race track facilities or major multi-sport athletic complex(es),” such as Kansas Speedway and Children’s Mercy Park, where Major League Soccer’s Sporting KC plays.
Also, Native American tribes could open compacts to add sports betting at the five existing tribal casinos.
Jeff Morris, vice president of public affairs and government relations for Penn National Gaming, which operates the Hollywood Casino in Kansas City, Kansas, testified, “This bill checks all the right boxes to make sports betting operations successful. The pro leagues pushed for an integrity fee, but that that was unanimously rejected by states. Undeterred, the leagues have quickly pivoted to asking for a mandate for official league data. The request for the mandate of official league is an attempt by the leagues to charge us twice for official league data.”
Morris explained how statewide mobile betting can minimize the illegal market and how lower tax rates lead to better competition among legal operators and against the black market.
The National Council on Problem Gaming requested some sports betting revenue go toward treatment of gambling addiction.
