Kansas Becomes Second State to Legalize Sports Betting in 2022

• Kansas Governor Ceremoniously Signs Sports Betting Legalization Bill into Law
• Multi-Step Process to Include State Tribes Has Already Begun
• Most Revenue From 10% Sportsbook Tax Earmarked for Sports Team Relocation Fund

Kansas Governor Ceremoniously Signs Sports Betting Legalization Bill into Law

On Monday, Kansas Governor Laura Kelly was part of a gathering that included casino sector representatives and state lawmakers at which she ceremoniously signed their sports betting legislation – Senate Bill 84 (SB 84) – into law, with that market now set to go legal as of July 1.

According to the language of the new law, the Kansas’ new sports betting market will initially operate through the four state-owned casinos, with resident gamblers either placing bets in person or by using one of the three mobile apps each retail location will work with as partners.

Though that market will be legal at the start of July, it will still take some time after that for its regulatory and logistical portions to be set up, tested, and launched, however some insiders are optimistic that all that red tape can be handled by the start of the NFL season in September.

This makes Kansas the second U.S. state to legalize sports betting in 2022, the first being Maine whose Governor Janet Mills signed their bill into law back in April, both joining over thirty other states and Washington D.C. in this new venture that’s proving to be financially beneficial.

Of course, the native tribes in Kansas want a piece of the action, but right now that is not legally possible.

Multi-Step Process to Include State Tribes Has Already Begun

In Kansas and in most other states the native tribes have signed prior agreements with the state regarding how gaming will be handled there, those compacts legally binding and perfectly clear on what those tribes can and cannot do in terms of offering gambling services to the public.

The way SB 84 is written, the native tribes of Kansas are currently not included in the new legal sports betting market that’s about to launch, but that will most likely change soon as the multi-step process to amend those compacts has already begun.

First, tribal casinos must officially request negotiations over this issue, then if Gov. Kelly and the Kansas Lottery director agree to proceed, the tribes and the director will hammer out the details of an amended compact that gives them a chance to participate in the sports betting market.

Then once the Secretary of the Interior gives their approval of that amended compact, those Kansas tribes could begin offering sports betting to their customers, a future that many insiders seem confident will happen.

Most of the tax revenue from this market is already spoken for.

Most Revenue From 10% Sportsbook Tax Earmarked for Sports Team Relocation Fund

Kansas will charge a tax rate of 10% on sportsbook revenue, but when it comes to this new state income stream, Gov. Kelly has made her cautious fiscal expectations clear, saying:

We’re not going to be balancing the budget on the revenues coming in from sports betting, but every little bit helps. It allows us to do things like fully fund our schools, fully fund our roads, and expand broadband.

As we have already reported, eighty percent of the tax revenue generated by the legal sports betting market in Kanas is earmarked to fund incentives meant to attract a wide variety of pro sports teams to relocate to Kansas, including the NFL’s KC Chiefs who live in nearby Missouri.

Whether that works or simply upsets their neighbors only time will tell, so keep checking back for the latest news and updates on this unfolding story in Kansas.