A House subcommittee on sports betting in Kansas recently held the first of three meetings to discuss: whether Kansas casinos, lottery retailers, dog racetracks or restaurants and bars should be authorized to offer sports betting; if professional or college sports associations be paid a percentage of revenue from sports books; and whether sports betting should be offered by each casino’s and bar’s app or through a single mobile app.
Under a measure recently introduced in the legislature, sports betting would be taxed at 6.75 percent, with a 0.25 percent royalty for professional or college sports governing bodies. Kansas Lottery Interim Director Stephen Durrell said estimates of how much tax revenue the state could receive depended on the proposed structure of the system. State Rep. Renee Erickson said, “There seems to be very little money in sports wagering itself so am I missing something behind the motivation for wanting to provide this from a casino’s perspective?” She noted sports betting generated about $15 million annually for Nevada and asked why casinos, lottery retailers and other businesses were “fighting for the relatively small pot of money.”
Durrell said online and mobile sports betting could make it difficult to ban players under 21 years old and deal with problem gamblers. “It’s akin to parents allowing their kids to drink that are under the age of 21. There’s only so much the state can do try and help regulate this. There is some degree of personal responsibility that we have to be aware of. In this situation, it’s a line to walk,” he said. Durrell added the Kansas Lottery would support a measure requiring more investment in programs to help people with gambling problems.
State Rep. Stephanie Clayton added another twist to the issue. “I don’t like getting beaten by Missouri. It’s a Kansas trait. I think a lot of people share that,” she said.
Hollywood Casino representative Whitney Damron also noted state-run sports books could present significant risk. He said New Jersey and Rhode Island lost millions of dollars on the Super Bowl and said existing casinos, not the Kansas Lottery, should operate mobile applications for sports wagering.
“We don’t think the state of Kansas should take on that risk. We don’t think the headline after the Super Bowl should read, ‘Patriots win another Super Bowl, state of Kansas loses $3 million,’” Damron said.
Attorney Kevin Fowler, who represents Kansas Star Casino in Mulvane, cautioned against giving major leagues an integrity fee, noting no state has done that so far. The leagues want one-quarter of one percent, Fowler said, but since that would apply to all wagers, it more likely would result in 5-7 percent. Leagues already stand to make billions of dollars off gambling through sponsorships and increased participation, he said.
The panel also heard from Scott Schneider, representing the Kansas Restaurant and Hospitality Association. He said Buffalo Wild Wings in particular has expressed interest in offering sports betting. “Give them a portal. Give them a kiosk. Give them something that doesn’t drive dollars away,” he said.
