In Kansas, state Senator Bud Estes, chair of the bipartisan Kansas Special Committee on Federal and State Affairs said select individuals working behind closed doors could draft a sports betting bill before the new session starts in January. He said he’d invite casino managers, industry lobbyists and consultants, lottery ticket retailers, sports league representatives, state regulators and a few legislators to informally collaborate on a framework for legal sports wagering in Kansas. “Get your heads together. We have a chance to get it right. I just think there’s a workable solution sitting here,” he said at the close of the first day of committee hearings on the topic; he canceled the second day’s hearings.
Committee member state Rep. John Carmichael said, “I don’t think that is a good idea,” in reference to Estes’ closed-door, sports betting bill-writing suggestion. Carmichael said the idea lacked transparency. He also said sports wagering only should occur at Kansas’ four state-owned casinos. He disagreed with allowing sports betting online or via smartphones, calling that a “dangerous road” Carmichael said, “I’m worried about kids sitting up, 10 o’clock at night, gambling away.” But state Senator Rob Olson said state-approved apps or websites would be regulated, so players would not be tempted to use illegal sites or those based in other countries. “I think we’re going to have to have some flexibility because a lot of it’s going to be done online in the future,” Olson said.
Other options would allow Kansas Lottery retailers to take sports bets, and establish sports books at the state’s shuttered dog racing tracks if they reopened.
Regarding taxes on sports betting revenue, Estes said the state must not make rates too high. “If you do that, you just ensured that the illegal gambling structure will stay in place and people won’t go to the legal side of it,” he said. More than one speaker recommended a net tax rate of 6.75 percent of sports wager revenue, the same as Nevada.
Committee members also heard from Ohio state Senator Bill Coley, chairman of that state’s Senate Government Oversight and Reform Committee and head of the National Council of Legislators from Gaming States. Coley said Kansas also would need to create systems to deter money laundering, match fixing and problem gambling. In addition, lawmakers would need to determine what sports would be included in the Kansas model, as well as consider if bets should be limited to game outcomes or include in-play wagers. “What if developers wish to make a substantial investment in a large resort facility in your state? Would you permit those developers to have a sports book at this large resort complex?” Coley asked.
Coley said he thought none of the eight states that have legalized sports betting have gotten it right. He said states should act as financial middlemen between the professional sports leagues and sports books, and supports paying leagues an integrity fee; so far no state that has legalized sports betting has included that. “If the states get this wrong, the biggest losers will be the sports leagues. No longer will their matches be viewed as athletic contests. Everything will start to look like professional wrestling. Entertaining, but not true competition,” he said.
Coley invited Kansas lawmakers to attend the National Council of Legislators from Gaming States meeting, January 4-6 at Harrah’s Casino in New Orleans. Estes said he doesn’t see any conflict with attending. However, Carmichael said attending the conference “far beyond the bounds of propriety.” He stated he doesn’t need to be “educated at a legislative junket hosted by the gaming industry.”
Estes recommended the committee reconvene during the week after the conference and before the session opens, to determine whether or not to move forward on sports betting legislation.
Democratic Governor-elect Laura Kelly earlier said she supports sports wagering.
Neighboring Missouri is the only state bordering Kansas that’s moving toward legalizing sports betting. Recently state Senator Denny Hoskins filed a sports betting bill and two days later, state Rep. Cody Smith filed sports betting legislation. The states share a state line border that bisects Kansas City, so Kansas would be significantly impacted if Missouri is first to allow sports wagering.
