The Kansas Senate recently held hearings on a bill that would legalize sports betting and mobile wagering in the state. Some stakeholders contend that convenience stores should be permitted to participate in any betting expansion.
Under the provisions of Kansas SB 84, horseracing would be considered a sport like baseball, football and golf, and regulation would be divided between the Kansas Lottery Corp. and the state racing commission.
Lawmakers heard the pro sports betting side on February 10, and the opposition on February 11, according to Sports Handle.
Jeff Morris, director of government affairs for Penn National, praised the low tax rates: 7.5 percent on gross gaming revenue for retail sportsbooks, and 10 percent on mobile. Each sportsbook would be required to submit an application fee of $250,000 to be considered for a license.
Betting on college sporting events would be legal.
“Not only is mobile necessary to compete against the unregulated off-shore sites, but it is also an option that bettors demand,” wrote Ryan Soultz of Boyd Gaming, in a statement supporting the bill.
The legislation would also allow pro teams and existing casinos to partner with sportsbooks for mobile wagering, and each could have up to three digital partners.
The initial proposal only allows for the four commercial casinos in the state to obtain a sports betting license. These properties would be able to offer both retail and online sports betting, but that would leave a very limited amount of options in Kansas.
Retailers that can sell lottery tickets are lobbying for the chance to be included in any official sports betting law. There are more than 1,000 of these locations throughout the state, and the hope is that they will be included in sports betting.
Thomas M. Palace, the executive director of a group of convenience stores and gas stations called True Fuel wrote that his members should be able to participate.
“Kansas convenience and grocery retailers are the backbone for games hosted by the Kansas Lottery,” Palace said. “There are approximately 1,100 convenience retailers that sell lottery games that generate millions of dollars for the state. We believe that any game offered through the Kansas Lottery should be available to qualified retailers. That is why we oppose this bill.”
This bill includes an allowance for Indian tribes, along with sports wagering at a soccer stadium and NASCAR track in Wyandotte County. “But it excludes the racetracks,” said Jason Watkins of the Ruffin Companies and Kansans for Fair Play.
Deb Stidham, president of the Kansas Association of Addiction Professionals, wants protections for problem gamblers, and suggested that 2 percent of revenue the state collects go towards preventing and treating addictions. Kansas already allocates 2 percent of casino revenue for problem gambling initiatives.
Chairman Larry Alley said the committee will consider amendments to the legislation on February 24. The Kansas legislature is in session until May 15.
