Kansas Revisits Sports Betting Legislation

The Kansas Senate and House are revisiting mobile sports betting measures held over from the last session. A recent committee hearing chaired by state Senator Robert Olson (l.) indicated lawmakers need further education about sports wagering.

Kansas Revisits Sports Betting Legislation

In Kansas, the Senate and House are debating bills held over from the previous session that would legalize statewide mobile sports wagering.

At a hearing of the State and Federal Affairs Committee, Vice Chairman and state Senator Robert Olson said, “We have to try to figure out how to get this over the finish line. I’d like to see if we can come up with a compromise and fix this thing and maybe do a little magic. We’re missing out on a nice chunk of money.”

The arrangement in Kansas would differ from most states, since the Kansas constitution requires all gaming to be “owned” by the state. That means the Kansas Lottery would regulate sports betting and licensees would be known as “sportsbook managers.” As a result, sports betting gross gaming revenue would not be taxed; however, the Senate and House bills allow for a certain percentage of gross gaming revenue to be “retained” by the state.

The Senate bill would allow betting on horseracing but the House bill specifically prohibits betting on the sport, which is overseen by parimutuel regulators. Both bills require bettors to be at least age 21 and both ban betting on greyhound racing.

In addition, the Senate bill would allow three skins per sports betting manager and the House would allow one. The House bill would require using official league data to settle in-game wagers; the Senate bill does not include this provision. Under the Senate bill, 5.5 percent of gross gaming revenue from in-person wagers and 8 percent from digital wagering would go to the state; the House would require 14 percent for in-person wagers and 20 percent for mobile wagers. The Senate would earmark 2 percent of state revenue for responsible gaming programs; this set-aside isn’t included in the House bill.

Other differences: The House version would allow the lottery to have its own platform but the Senate version would not. Also, the House would limit in-person wagering to bets on a game’s outcome.

Observers at the hearing noted several committee members asked questions that clearly indicated they and their colleagues will need to be educated about sports wagering. Questions included: Will Missouri wagerers be able to use Kansas platforms in Kansas; can an individual’s age and location be verified online; and “How can I get my mobile phone activated at a casino” to place a bet.