In Kansas, lawmakers are working on a bill that would legalize sports betting. House Minority Leader Tom Sawyer noted, “It makes sense for the state to say, ‘Let’s regulate it now and tax it to bring in some additional revenue. I do think it’s something we ought to pursue.” However, Senate President Susan Wagle called legalizing sports betting a second-tier issue. “It’s not a high priority. If the committee can find consensus, I’m willing to work the bill,” she said.
House Speaker Ron Ryckman said House and Senate efforts regarding gambling legislation would be “complicated” due to all the questions surrounding the issue. Those would include where betting could occur, allowing online betting, providing money for problem gaming and detecting game-fixing.
Another issue is taxing sports betting revenue. Drake University law professor Keith Miller, co-author of The Law of Gambling and Regulated Gaming, said estimates of $75 million in sports gambling revenue in Kansas are too high. He said sports books are a low-margin business for casinos. “A lot of people don’t want to go to a casino to bet on sports. If the tax is too high, sports betting products are less attractive than the black market,” Miller said.
Also, royalties and integrity fees are a consideration. Major League Baseball Deputy General Counsel Bryan Seely said MLB should receive a 0.25 percent royalty. However, Troy Stremming, an attorney for Hollywood Casino at Kansas Speedway, said, “Allowing for integrity or royalty fees to be paid to professional sports leagues would set a bad state policy and will undercut the economic viability of legalized sports wagering.”
Operators of Kansas’ state-owned casinos in Dodge City, Pittsburg, Mulvane and Kansas City said they support sports wagering if it’s regulated by the Kansas Lottery.
