TOPEKA — The four companies managing state-affiliated casinos in Kansas linked arms Wednesday to urge legislators and the governor to join two dozen other states in legalizing online or casino sports gambling.
The issue has been percolating at the Kansas Capitol since the U.S. Supreme Court in 2018 upheld the right of states to regulate sports gaming. Half the nation’s states have taken the plunge into sports betting, while lawmakers in Kansas struggle to settle on a framework acceptable to the Kansas Lottery, casino management companies, politicians and lobbyists.
Jeff Morris, an executive with Penn National Gaming licensed to operate Hollywood Casino at Kansas Speedway in Kansas City, Kansas, said the latest incarnation of a solution for Kansas — Senate Bill 84 — was suitable from financial, regulatory and marketing perspectives. In the Senate Federal and Affairs Committee, he joined representatives of state-authorized casinos in Mulvane, Dodge City and Pittsburg in support of the bill.
“We believe legal sports betting has the potential to provide a meaningful shot in the arm to Kansas’s gaming industry and to provide a new revenue stream to the state of Kansas,” Morris said.
He said the prospect of opening sports books in casinos and online in Kansas would be a welcome response to proliferation of illegal slot machines and cannibalization of the U.S. industry from relentless gaming expansion. The advent of legal sports betting in Kansas can be useful as COVID-19 continues to hinder casino operations with capacity limits, he said.
Opponents of this legislation on sports betting are scheduled to testify Thursday to the Senate Federal and State Affairs Committee. In the past, the legislation has been held hostage to competing views on who should manage sports books and how widely Kansas should offer opportunities to bet on the Kansas City Chiefs, University of Kansas basketball and other athletic events. Issues related to the state’s share of sports betting revenue and potential of opening up sports books at defunct horse or dog tracks complicated the debate.
The Senate bill acknowledged sports betting could contribute to societal problems by requiring $750,000 generated by sports books to be deposited in the state’s white-collar crime fund. In addition, a portion of sport wagering revenue would be set aside for the state’s problem gambling and addiction fund.
In 2020, the Senate approved a bill legalizing sports gambling at the four state-owned casinos. That bill was ignored by the House, which preferred a strategy enabling 1,200 lottery retailers to be at the forefront of sports wagering in Kansas. The House’s alternative didn’t gain traction before COVID-19 abruptly ended the legislative session. Gov. Laura Kelly, in the past, expressed support for legislation permitting the Kansas Lottery to take the lead on sports gambling.
Under the new Senate bill, in a concession to the Kansas Lottery, a ban on the sale of lottery tickets by electronic mail, the internet or telephone would be deleted from state law.
Ryan Soultz, who represents Boyd Gaming and the Kansas Star Casino in Mulvane, said legalization of sports wagering in Kansas as outlined in the bill would improve the industry’s appeal to a younger demographic more comfortable with online experiences and not as likely to visit a casino. Success of sports-book gambling will foster economic development, support local communities and generate government revenue, he said.
“Sports books are another amenity in offering a compelling casino entertainment experience and helps draw a new, younger demographic to the property.
This increase in visitation leads to incremental spending in food and beverage, hotel stays and other gaming offerings,” Soultz said.
Executives with the Boot Hill Casino and Resort in Dodge City and the Kansas Crossing Casino in Pittsburg said the Senate bill, which was similar to the Senate bill debated in the 2020 session, made economic sense for state-owned casinos in Kansas and provided “reasonable terms to compete with illegal black market sports betting that is available throughout the country.
“The addition of sports betting enables the state-owned casinos to expand the retail customer base,” said Clark Stewart of Boot Hill Casino.
“It not only provides another revenue source, but an amenity within the casinos to help attract customers to the state of Kansas. The addition will also reduce the number of Kansas citizens driving across the borders to place wagers on sporting events.”
