Kansas debates how they should offer sports betting

Kansas has taken some tentative steps towards legalizing sports betting, and if a Senate Federal and State Affairs Committee meetings on February 10 and 11 are any hint, they’ll get there soon. Lawmakers kicked off the discussion with proponents of their effort, speaking with Jeff Morris, director of government affairs for Penn National Gaming, on the topic of Senate Bill 84, which would legalize mobile betting.

Morris praised what he sees in the bill. It’s got low tax rates (7.5% on gross gaming revenue for retail, 10% for digital)) and doesn’t have an official league data mandate, for which he prefers to allow the status quo to remain. “These deals can be reached privately and should not be legislatively mandated at what third parties declare to be ‘commercially reasonable’ terms,” he told the committee. “What may be ‘commercially reasonable’ to the leagues –- who face no competition –- may be inconsistent with the thin margin reality of sportsbook operators in a hyper competitive environment.”

Morris was the only sports betting representative to show up to the hearing, but others submitted testimony. Ryan Soultz of Boyd Gaming celebrated the mobile betting component of the bill. “Not only is mobile necessary to compete against the unregulated, off-shore sites but it is also an option that bettors demand,” he said.

Derek Hein, lobbyist for DraftKings and Fanuel, also added testimony that noted how important it was for Kansas to keep up with its neighbors, with Missouri and Nebraska considering legalization.