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Gov. Kelly of Kansas Signs Regulated Sports Betting Bill into Law
By Jeff Osienya May 13, 2022 LegalityHomestretch for the Sunflower State after Gov Laura Kelly signs a sports betting measure, SB 84, into law. Officials must now switch to high gear in preparation for a January 2023 market debut. The law is scheduled to take effect on July 1st.Legal sports betting is well and truly knocking on the doorstep of the Sunflower State. On Thursday, July 12th, Governor Laura Kelly officially signed Senate Bill 84 (SB 84) into law, the state’s regulated sports betting measure. Finally, the last piece of this long and complicated puzzle has come together, to officially make Kansas a legal sports betting state from July 1st, 2022. Speaking after appending her signature on the bill, Governor Kelly said:
Quote“Legalizing sports betting will bring revenue to our state and grow our economy. This is another mechanism that casinos, restaurants, and other entertainment venues can now utilize to attract Kansas to their establishments.”
Nevertheless, it hasn’t been a smooth ride to this moment Kansas finds itself. In 2021, there had been a similar attempt to pass a regulated sports betting measure, but it flopped in the House even after winning the Senate approval. Thankfully, this year, the bill sailed through the House on a healthy margin of 73 approval votes against 49 who opposed the measure.
Interestingly, this time around, it is the Senate that nearly extinguished the hopes for catapulting Kansas’ regulated sports betting plans to the finish line. With a 21 to 12 vote in the Senate, it was a close call for Kansas’ legal sports betting journey. In case you were wondering why the bill required a threshold of more than 50% of votes in the Senate. And given that the Kansas senate has 40 members, SB 84, achieved this fete by just one vote. Once the bill crossed the final hurdle of the legislative process, it was expected that Governor Kelly, who was a vocal supporter of the bill, would then quickly sign it into law – and she did not disappoint!
What Can We Expect From Kansas’ Sports Betting Market?
Now that SB 84 has been signed into law, there are high hopes for success and revenue windfall for both the state and operators. In addition, of course, plenty of new employment opportunities will be created by expanding gambling in the Sunflower State.
A 10% tax cut will be charged on every penny earned by operators in the state, whether online sportsbooks or brick and mortar sports betting venues. A substantial amount of this revenue is planned to be used to attract professional sports teams to the Sunflower State. The immediate target for the state will be the Kansas City Chiefs, a team that has recently expressed its desire to change stadiums.
However, as you could imagine, not everyone was particularly thrilled with the idea of using most of the newfound streams of revenue to attract sports teams to the state. Nevertheless, should everything go as planned, analysts indicate that Kansas stands to gain approximately $10 million annually in revenue streams when the market hits maturity.
Sports Fans in Kansas Will be Wagering on Sports Starting January 2023
Under the new law, the role of oversight will be shared between the State Lottery and the Kansas Racing and Gaming Commission. While the state targets a launch for the online and retail sports betting market in January 2023, the general expectation is that all systems will be ready to roll way before this year comes to an end.
The Kansas sports betting law will allow each of the state’s four casinos to offer retail sports betting. And on top of that, retail sportsbooks will also get the opportunity to host three online skins. So, with that, we can expect the likes of BetMGM, Bet365, Draftkings, Caesars, PointsBet, and FanDuel to pitch camp in the state soon.
Additionally, the casinos can request a fourth skin which must be used to partner with a Kansas sports professional team. The law also allows the casinos in the state to partner with 50 retail establishments, which will, in turn, offer retail sports betting services.
A Lawsuit Could Potentially Sour Things up for the Rubberstamped Bill
Amidst all the excitement surrounding gambling expansion, there’s an air of concern over the immediate future of sports betting in Kansas: a lawsuit has been filed against the measure. The legal complaint specifically targets a provision that will allow historical horseracing at the Wichita Greyhound Park.
This lawsuit was filed by the Kansas Star Casino, which holds horseracing betting interests near the Wichita Greyhound Park. The casino’s operator, the Las Vegas-based Boyd Gaming has an ongoing contract with the Kansas State Lottery, running until December 2026. Kansas Star’s main grievance is that it feels as if the state is breaching its contract, which guaranteed that the State Lottery would not allow competition from similar facilities in the Wichita area.
The early indications are somewhat unclear on how the state will fare in the lawsuit. However, attorney General Derek Schmidt has come out with assurances that the state is actively looking into this lawsuit, saying:
Quote“We’re mindful that the bill has passed. We’re taking a look to see what role, if any, we need to play, and because I don’t know what that might look like, I probably don’t need to talk much more about it until we’ve assessed it.”
Some Hopes Resting on a Fall Launch
While the surety we have is that systems will be in place by January 2023, there are hopes for a fall launch, even though it’s highly unlikely. However, should the fall debut be possible by a stroke of luck, it will mean that Kansas residents will have the opportunity to wager on the upcoming NFL and college seasons.
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