Kansas Governor Laura Kelly recently signed a bill that legalizes sports betting via cellphone or computer apps, on-site at the state’s four casinos or up to 50 other locations chosen by each casino. Fantasy sports betting previously was legalized. The bill passed with bipartisan support.
However, soon after Kelly signed the measure, the state, the Kansas Lottery and the Kansas Racing and Gaming Commission were sued in Shawnee County District Court in Topeka by the Kansas Star Casino; located 15 miles south of Wichita, it’s operated by Boyd Gaming under a contract with the Kansas Lottery.
The lawsuit centers on a provision allowing 1,000 historical horseracing machines at Wichita Greyhound Park. Casino officials contend the state is breaching the clause in its contract stating the lottery will not permit competition from similar facilities in the Wichita area. Boyd argues conventional slots and HHR machines are “indistinguishable” and that HHR machines should not be allowed at the dog park.
In a statement, Boyd officials said, “Boyd has lived up to its obligations, successfully operated the Kansas Star and invested hundreds of millions of dollars in Kansas Star based on the state’s contractual promise.” The company wants the state to pay a $25 million penalty plus interest, although the new law states the dog racetrack will reimburse Kansas if it gets the HHR machines.
State Rep. John Barker, who helped draft the final version of the law, said people do not agree on whether the HHR machines are slots. He said, “I guess we will not know for sure” until the case reaches the Kansas Supreme Court. “It’s a separate part of that bill, so I would think maybe the sports betting could go forward,” he said.
Analysts said sports betting could generate $9 million to $45 million in annual revenue; the state’s share is estimated at $5 million. After the first $750,000 in tax revenue, 80 percent of funds will be directed to recruit professional sports teams to Kansas, including luring the Kansas City Chiefs to Kansas from Missouri.
Hollywood Casino, operated by Penn National Gaming at Kansas Speedway in Kansas City, Kansas most likely will be next to offer mobile and on-site sports betting. Spokesman Jeff Morris said he expects Kansans to start placing legal bets by the start of the National Football League season.
Jake Reid, president and chief executive officer at the professional soccer team Sporting KC, whose home base is Children’s Mercy Park, said he expects most wagering on the team will take place online. Kiosks and windows at the stadium also are a possibility. “I think in terms of the in-stadium experience, we’re looking at what spaces we can convert over to be some sort of lounge. Are there areas where it’s easy for fans to walk up and access and get the information they need.”
Reid said the team won’t start offering sports wagering until 2023, but the state could approve select venues for sports gambling as early as September or October.
