Kansas Lawmakers Reconsider Sports Betting

A Kansas House committee heard testimony on a bill to legalize sports betting online and at casinos, convenience stores and racetracks. Analysts estimate the wagers could generate $50 million in annual revenue.

Kansas Lawmakers Reconsider Sports Betting

The Kansas Jayhawks are among the final 16 teams still competing in the 2022 March Madness Tournament. Kansas lawmakers certainly are aware that betting on the Sweet 16 is occurring in the state, but no revenues from those bets is going to the state.

That situation may be corrected in the near future if the Kansas legislature passes House Bill 2740, which would legalize sports betting via 12 online platforms and on-site wagers at casinos, convenience stores and racetracks.     The bill would also legalize historical horseracing machines. The Kansas House Federal and State Affairs Committee recently heard testimony on the bill, with Committee Chairman state Rep. John Barker commenting, “I never thought this day would get here.”

Supporters included officials from three state casinos, a tribal casino and the Sporting Kanas City soccer team. Also, a lobbyist spoke on behalf of billionaire Las Vegas casino owner Phil Ruffin, who for years has tried to reopen his shuttered Sedgwick County horse racetrack. Opponents included animal rights and problem gambling services groups.

The bill would allow the Kansas Lottery to contract with gaming facility managers, who could offer wagering on-site and through websites and online apps. Also, it would allow betting on horseraces and permit kiosks at horse racetracks but not at greyhound tracks. Professional sports teams would be allowed to enter into marketing agreements with sportsbook operators, however, since there are no pro teams in Kansas, that provision may signal major franchises in neighboring regions.

The state would receive 20 percent of online betting revenue and 14 percent from in-person bets. Whitney Damron, a lobbyist for Hollywood Casino at the Kansas Speedway in Kansas City, Kansas, said revenue estimates show the state could receive $50 million in annual revenue.

Jim Gartland, executive director of the National Greyhound Association, and Mike O’Neil, representing the Kansas Greyhound Association, submitted written testimony raising concerns about Ruffin. Gartland said,

“This is akin to letting a McDonalds franchise owner write the laws on what other fast-food companies are allowed to be operated in the state.”

Last year, the Senate passed similar legislation but it failed in the House. State Senator Rob Olson, who introduced a new bill, said, “It’ll be the best benefit for Kansans that are using it. They’ll be able to have that app on their phone. The young people have kind of gone this modern way.” Olson’s measure adds legalized sports betting to the Kansas Lottery Tax Act.