The launch of sports betting in Kansas is back on schedule after the state’s Attorney General rubberstamped provisional market operation rules. A handful of sportsbook operators have already received approval to go live on September 1.
The Sunflower State’s September sports betting debut is now back on track after jumping over one last surprise hurdle. Kansas Attorney General Derek Schmidt gave the Kansas Lottery the go-ahead to launch sports betting after initially rejecting part of the interim market regulations.
This good news was shared on Friday by Kansas Governor Laura Kelly. She confirmed that the Sunflower State will begin a soft launch on September 1, followed by a full launch of mobile sports betting on September 8. In her statement, Gov Kelly highlighted the importance of legalizing sports betting in Kansas to ensure Kansans’ money is spent within state lines. In addition, the income from a regulated industry is expected to significantly drive business growth in casinos, entertainment joints, sports events, and restaurants.
Following the announcement by Laura Kelly, the Executive Director of the Kansas Lottery, Stephen Durrell said.
Quote“This announcement represents a lot of hard work and collaboration between the Kansas Lottery, the Kansas Racing and Gaming Commission, our casino and tribal partners. The process to bring this to fruition has moved at an unbelievable pace. We are excited to be bringing sports betting to Kansas players and adding more fun and exciting play options to the Sunflower State.”
A Look Into The Attorney General’s Reservations
On Thursday, August 18, the Kansas Lottery announced the expected launch of sports betting on September 1. Soon after, Schmidt revealed that his office had encountered legal issues while reviewing Kansas sports betting regulations. In a press release by the AG’s spokesperson, John Milburn, the Attorney General’s office said:
Quote“We are aware of the urgency in this matter and have expedited and nearly completed initial review of the proposed regulations from the Kansas Lottery. Our initial review has identified significant legal issues with the agency’s proposed regulations. We intend to approve these regulations as soon as the agency fixes the legal problems in their initial version.”
Some of the issues the AG had requested that the Kansas lottery addresses were the operator’s roles and responsibilities and clarification of the meaning of a virtual event to ensure it’s not overboard. Other issues included clarifying who submits adverts, who makes rules for sportsbooks, and how to avoid making adverts that target problem gamblers.
Representatives from the Kansas Lottery have confirmed that the soft launch date on September 1 remains in place. The state Lottery officials are also optimistic they will resolve all pending issues with the Attorney General on time for this year’s NFL games. In response to the Attorney General’s concerns, the Kansas Lottery stated.
Quote“The Lottery has had an excellent working relationship with the Attorney General’s Office and there is always an exchange of ideas and legal theories when it comes to rule and regulation approval. This is an ordinary course of business with the Lottery and The Attorney General’s office, and the Lottery is confident that any issues the Attorney General has potentially identified will be worked out very quickly.”
Who Gets a Share of the Sports Betting Pie?
The Kansas Lottery has already confirmed the first lot of operators awarded sports betting licenses so far, with the go-ahead to launch on Thursday. Under Senate Bill 84, the four state-regulated casinos in Kansas will offer in-person sportsbooks and are allowed to partner with up to three online mobile sports betting providers as skins.
Located in Kansas City, Hollywood Casino partnered with Barstool Sports and will offer mobile sports betting and an in-person sportsbook. In addition, the Kansas Star Casino in Mulvane has teamed up with FanDuel sportsbook to provide retail and interactive wagering.
In Pittsburgh, the Kansas Crossing Casino joined forces with the most sports betting companies; Caesars, PointsBet, and BetMGM sportsbooks. Finally, Boot Hill Casino and Resort, located in Dodge City, will work in tandem with Bally Bet and the Nasdaq-listed DraftKings Sportsbook, which recently acquired Golden Nugget Online Gaming.
Tax Revenue Allocations From Kansas Regulated Sports Betting
The Sunflower State will collect a 10% tax on every sports wager placed, and this money will be channeled to different purposes as defined in the sports betting law. For starters, the White-Collar Crime Fund, formed to investigate vices related to illegal betting, will receive the first $750,000 tax revenue that Kansas will collect.
Further, 80% of the remaining revenue will be disbursed to the Attracting Professional Sports to Kansas Fund, aimed at encouraging professional teams to move to Kansas. Another 2% of the tax revenue will go to Problem Gambling and Other Addictions Grants Fund, and the remaining sum will go to the Lottery Operating Fund.
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