Kansas Gambling Bill

  
Kansas Gambling Bill

Legal Kansas sports betting is one step closer after the SunflowerState‘s Senate passed a retail and mobile bill Wednesday.

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Kansas has taken a significant step towards legalizing sports betting after SB 283 passed through the Senate in a 23-15 vote. The bill would permit online and retail sports wagering across the state. The Senate's bill would allow people to place bets on sports events through four state-owned casinos managed by private companies through contracts with the Kansas Lottery, and the casino. The act created the Kansas Lottery, and empowered it to establish and operate a state lottery, the sale of lottery tickets, and the game of keno. The act was amended in 2007 by Senate Bill 66 to add operation of lottery gaming facilities (casinos) and racetrack gaming facilities (racinos) to the Kansas Lottery’s jurisdiction.

SB 283 just beat the chamber crossover deadline of Thursday, but it wasn’t done easily. The debate lasted more than four hours with a failed amendment from Sen. Tom Holland that attempted to essentially replace the bill. It would have put the state in control of negotiating with sportsbook operators and casinos.

The bill had no opponents in committee. It was the first time the carrier of the bill, Sen. Jeff Longbine, said he’s seen that for a gaming bill. It passed by voice vote in the Senate.

Jeff Morris, Penn National‘s VP of Public Affairs and Government Communication, praised the bill as a collaboration between the legislature and casino operators.

Kansas sports betting details under SB 283

SB 283 is one of the more industry-friendly sports betting bills introduced this year.

Operators would pay a 7.5% tax on Kansas sports betting revenue from retail operations. Online revenue would be taxed at 10%. There could be up to eight online sports betting operators in Kansas based on two licenses for each casino.

An amendment from Senate President Susan Wagle designating 2% of sports betting revenue to addiction counseling passed. She also included guardrails to keep the funds from being funneled to other healthcare areas.

The 2% is already on the laws for casino revenue in the state, but only about 8% of that was actually going to addiction, she said. There are 54,000 Kansans with a gambling problem, 75% of whom also have other addictions, Wagle added.

Betting at sports facilities too

Kansas doesn’t have a professional sports team in the four big leagues – NBA, NFL, NHL or MLB. But it does have an MLS team and a NASCAR track, both of which could be involved in sports betting in Kansas under the bill.

Kansas Speedway and Children’s Mercy Park would have to sign an agreement with one of the state’s four casinos. No on-site betting would be allowed but the venues could have KS sports betting areas.

The natural fit for either venue would be Penn National’s Hollywood Casino, located within minutes of both.

State has reasonable fiscal expectations

Kansas Sports Betting Bill

The fiscal note for SB 283 from Kansas’ Director of the Budget Larry Campbell includes modest expectations.

The Kansas Lottery estimates $360 million to $600 million in annual handle. That could grow to $900 million after five years, according to the note.

Taking conservative estimates and based on Iowa’s actual results for 2019, the note considers $500 million in handle. That would lead to $2.25 million in tax revenue based on 5% hold and an effective tax rate of 9% with most revenue expected to be generated from online operations.

Nick Apel

Kansas Gambling Bill

Nick is a 3L at the University of Kansas School of Law. Nick received his Bachelor’s degree in Mechanical Engineering from the University of Kansas. Professionally, Nick is interested in patent law. In his free time, Nick enjoys spending time with family and friends. Nick is also a Kansas City Chiefs fan.

Kansas Gambling Bill

Kansas Sports Gambling Bill

Kansas is currently considering two different bills to legalize sports wagering. The introduction of these bills comes in wake of the landmark Supreme Court case Murphy v. NCAA in 2018. 1 In Murphy, the Supreme Court determined the constitutionality of the Professional and Amateur Sports Protection Act (“the Act”)—a federal law which prohibited States from authorizing sports wagering. 2 The Supreme Court determined, amidst controversial policy considerations, the Act unconstitutional, allowing States to introduce their own sports betting legislation. 3 In reference to preemption arguments the Supreme Court stated, “there is simply no way to understand the provision prohibiting state authorization as anything other than a direct command to the States. And that is exactly what the anticommandeering rule does not allow.” 4

The Kansas House has introduced House Bill 2671, and the Kansas Senate has introduced Senate Bill 283. 5 The Kansas House heard testimony from various groups and organizations on March 12, 2020 but adjourned without voting on the bill. 6 Therefore, House Bill 2671 has not made it to the Kansas Senate yet. The Kansas Senate, on the other hand, passed its version of the sports gambling bill on February 26, 2020. 7 Senate Bill 283 will now move onto the Kansas House.

The two bills have some drastic differences but also some striking similarities. 8 House Bill 2671 makes the Kansas Lottery regulator and operator of sports betting, mandates “official league data,” and comes with a high tax rate. 9 Senate Bill 283 has about half the tax rate, “calls for state-wide mobile sports betting . . . and does not have an official league data mandate.” 10 Those opposed to House Bill 2671 cite to the high tax rate and the fact that there would be no limit on lottery kiosks—enabling sports betting anywhere. 11 However, both bills would allow for some form of an online sports wagering platform. 12 Both House Bill 2671 and Senate Bill 283 would also run—in at least some capacity—through the Kansas Lottery. 13 This could result in the Kansas Lottery having a monopoly over sports betting in Kansas, like the D.C. Lottery will likely see from passing a bill very similar to House Bill 2671. 14

Oklahoma Gambling Bill

It is highly unlikely both bills will progress through the Kansas House and Kansas Senate. One will surely outlive the other. “Many of those who [have already] testified” favor Senate Bill 283. 15 Senate Bill 283 is also closer to being enacted because it has successfully passed through the Kansas Senate. However, local and national concerns over the recent outbreak of COVID-19 will likely slow the progress of either bill.

Kansas Gambling Bill

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Kansas Gambling Bill

  1. 138 S. Ct. 1461 (2018).
  2. Id. at 1468.
  3. Id. at 1484–85.
  4. Id. at 1481.
  5. H.B. 2671, 2020 Leg., Reg. Sess. (Kan. 2020); S.B. 283, 2020 Leg., Reg. Sess (Kan. 2020).
  6. Jill R. Dorson, Operators Bash Kansas House Sports Betting Bill, SportsHandle (Mar. 12, 2020), https://sportshandle.com/kansas-sports-betting-operators-bash/.
  7. Jill R. Dorson, Kansas Sports Betting Moves Forward Amid Controversy, SportsHandle (Feb. 27, 2020), https://sportshandle.com/kansas-sports-betting-moves-forward/.
  8. See Dorson, Operators Bash Kansas House Sports Betting Bill, supra note 6.
  9. Id.
  10. Id.
  11. Id.
  12. See Kan. H.B. 2671;Kan. S.B. 283.
  13. Id.
  14. See Dorson, Operators Bash Kansas House Sports Betting Bill, supra note 6.
  15. Id.