Kansas sports betting could become a reality through a seemingly favorable bill that would legalize mobile wagering.

1. Kansas Sports Gambling Bill
2. Oklahoma Gambling Bill

SB 283has many of the qualities that appear in successful sports betting bills nationwide. Each of Kansas’ four casino operators, technically regulated by the Kansas Lottery, would get two sports betting licenses. Each license allows mobile betting, which means there could be eight online sportsbooks in the state.

Senate Bill No.23, also known as the Kansas Wagering Act, sets out plans for the Kansas Lottery to offer sports betting in-person, via the internet and on mobile. If passed, the bill would limit in-person sports betting to facilities operated by the Kansas Lottery, approved retailers and other gaming facilities and racetracks that have. 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.

Commercial terms are operator-friendly. Retail bets would have revenue taxed at 7.5%, while online bets are taxed at 10%. The bill did not include details for application or license fees.

No in-person sign-up for Kansas sports betting

Kansas has several sports betting bills circulating in Topeka, and the animal-rights groups aside, HB 2671 is considered by many to be the most unpopular because it allows the Kansas Lottery to not only regulate and operate, but also because of the high tax rate (14% retail gross gaming revenue, 20% mobile) and an “ official league data ” mandate.

There’s also isn’t a requirement for in-person registration, meaning bettors can create and fund accounts directly from the sportsbook apps.

Finally, there’s no college betting ban. That’s a necessity for states without a professional team in any of the four major sports.

Overall, the bill shows collaboration among leadership, legislature and casino operators, Jeff Morris, Penn National’s VP of Public Affairs & Government Relations said. The hope is to get Kansas sports betting legalized and operational by the 2020 football season, Morris added.

There’s also an incentive to get something done because of Kansas’ bordering states as well. Colorado is launching sports betting May 1 while Missouri and Nebraska currently have bills in the legislature that would legalize sports betting.

SB 283 will get its first hearing on Jan.29.

Potential Kansas sports betting participants

We can narrow down some of the likely sportsbooks that would enter Kansas thanks to market access deals signed by casino operators.

Penn National, the operator of Hollywood Casino at Kansas Speedway, maintained its primary skin in every state it operates after signing multiple state-access agreements. That means a sportsbook powered by Kambi could be coming, but branding is still unclear. It could have something to do with Barstool Sports if the rumored acquisition comes to fruition.

It also gave The Stars Group access to its second available skin in the state. That means Fox Bet would likely be the second operator under Penn’s licenses.

Boyd Gaming‘s Kansas Star could sign agreements with FanDuel Sportsbook and BetMGM based on its two market access deals.

The remaining four licenses for Butler National, the operator of Boot Hill, and Kansas Crossing operator JNB Gaming, are likely up for grabs to the highest bidders.

Kansas Sports Gambling Bill

Betting at two KS sports venues, too

The only two professional sports venues in Kansas would get access to sports betting as well.

NASCAR track Kansas Speedway and Children’s Mercy Park, home of Major League Soccer‘s Sporting KC, could have KS sports betting areas. Both venues would have to sign an agreement with one of Kansas’ four casinos for a sports betting area, though no on-site retail betting would be allowed.

The natural fit for both venues would be Penn National’s Hollywood, as the two are a stone’s throw from the casino.

Nick Apel

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.

Oklahoma 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

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.

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.