Kansas Senate Approves Lower Racino Taxes

The Woodlands racetrack in Kansas City, Kansas could reopen thanks to the state Senate's 24-12 vote to lower gaming taxes to 22 percent. The track closed in 2008 after the legislature voted to allow slots with a 40 percent tax rate. The House now will consider the bill.

The Kansas Senate voted 24-12 to lower taxes on the Woodlands’ slot machines to 22 percent—a move intended to help revive the dog and horse racetrack. The Kansas City, Kansas track closed in 2008 after the legislature passed a law allowing slots at racetracks but with a 40 percent tax rate. The House now will consider the measure.

Republican state Senator Steve Fitzgerald, sponsor of the bill, said the lower tax rate would allow investment in the racetrack. He noted he most likely was elected in 2012 in a Democratic district because he promised to revive the Woodlands. “If I don’t bring home the bread, or the bacon, whichever this is, it’s not going to be good,” Fitzgerald said.

He added reopening the tracks also would help the state’s horse breeding industry. Racehorses, Fitzgerald said, “are really large pets worth nothing unless they can take them to a horse race and race them.” Kansas breeders have struggled because they must send their horses to out-of-state racetracks. “It’s time we let their horses back into the state. It’s time we make this industry more viable,” said Senate Minority Leader Anthony Hensley.

Meanwhile, Kansas Governor Sam Brownback signed a bill making clear that fantasy sports leagues are legal. The confusion arose because the Kansas Constitution only permits games that fit a broad definition of a lottery. Last August the state’s gambling regulator said fantasy sports are considered to be illegal lotteries, although there have been no known prosecutions.

In April, Attorney General Derek Schmidt clarified the situation by releasing an opinion that legislators could make fantasy sports leagues legal, by stating the outcomes depend upon players’ knowledge and skill. The bill that subsequently was introduced passed with large majorities in both chambers.

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