In Kansas, five sports betting bills were introduced during this year’s legislative session, with the latest being HB 2390 and SB 222. The identical bills would authorize the Kansas Lottery to regulate sports betting at the four state-owned casinos and racetracks; both retail and mobile wagering would be permitted.
According to a study by the Kansas Division of the Budget, sports betting would generate $1-$2 billion in total bets annually. After payouts, about $50 million would be left to cover administrative costs fees and profit. With the state lottery overseeing sports betting, more money would go to the general fund. The four casinos, although state-owned, are operated by commercial companies; if they managed sports betting the amount left for the state would shrink significantly due to taxes.
Sports leagues also have expressed their desire for an integrity fee, or royalty, since they’ll have to spend time and money to combat cheating. The league also wants to block certain types of bets, like whether the first pitch of a game will be a ball or a strike. “Major League Baseball has an obligation to our fans and our sport to ensure any sports betting law does not damage our game,” said MLB Senior Vice President and Deputy General Counsel Bryan Seeley in testimony to Kansas lawmakers earlier this year.
One reason lawmakers prefer sports betting regulation by the lottery over casinos is because the latter could target problem gamblers, according to state Rep. Francis Awerkamp. “Are we trying to encourage people to gamble more? Is that a common good? I don’t think that’s a proper use of personal data,” he said. In addition, Rick Skinner, general manager at Hollywood Casino in Kansas City, Kansas, said sportsbooks present financial risk, citing the low score at the Super Bowl and Tiger Woods’ surprise comeback, which both ended up costing sportsbooks money. “Tiger Woods winning the Masters was a prime example,” Skinner said. “It was the biggest one-day loss in sports book golfing.”
But, Skinner noted, sports betting “would just be another great attraction for the bricks-and-mortar facilities in the state. We’re one of four casinos in Kansas, but we have four competitors right across the river.”
A state-run sports book could be operated by the Kansas Lottery with bets taken through lottery retailers, a statewide mobile app and/or in-person at casinos. “Trying to get them all on the same sheet of music just takes time,” said state Rep. John Barker, chairman of the Kansas House committee considering the issue.
Governor Laura Kelly, however, has made it clear she supports sports betting. “I’m hoping that they can come to an agreement on sports betting. Other states are moving ahead with that and I would really hate for Kansas to be left behind.”
