Kansas is exploring the option of using taxes from sports betting to attract the NFL’s Kansas City Chiefs from Missouri to the Kansas side of the metropolitan area. Legislators in the Sunflower State were close on Wednesday to approving a measure that would put a 10% tax on each bet, with nearly all revenue going to a fund that aims to lure pro sports teams to come to the state.
The move comes as lawmakers seek to legalize sports gaming in the state after years of failed attempts. Lawmakers are expected to give final approval this week to a bill that would allow both mobile -each casino could operate up to three online platforms- and retail betting at casinos, or up to 50 other locations chosen by each casino.
State-owned casinos in Dodge City, Pittsburg, Mulvane and Kansas City, Kansas, which are established under control of the Kansas Lottery, would be permitted to operate sportsbooks, while tribal casinos would be able to negotiate with state officials to enter the market.
A version cleared the House in late March with broad, bipartisan support. The proposal was set for a vote in the Senate last Wednesday, but senators are seeking to introduce technical changes before it lands on Gov. Laura Kelly’s desk, reports Associated Press.
The bill would potentially lead to $5 million a year in revenue for the state under a 10% tax regime on each bet, with 80% earmarked for a Kansas Department of Commerce fund to provide incentives for pro sports teams to come to Kansas.
While the list of teams could include MLB’s Kansas City Royals or pro basketball or hockey franchises, bill supporters believe the fund could possibly get the Chiefs to cross the river. A potential new home for the NFL team would be Legends, a shopping and entertainment district in Kansas City, Kansas, that is home to a NASCAR track, pro soccer club Sporting KC, and a casino.
While not all legislators seem on board with the plan, some top Republicans believe the move would put Kansas in a better negotiating position to lure the Chiefs or other teams. The fund proposal follows reports that Chiefs President Mark Donovan said at an NFL owners’ meeting that the team was considering options for a new stadium in Kansas, further reports AP.
But the Chiefs are not the only ones assessing their options. MLB’s Royals are also exploring proposals, including a new stadium in downtown Kansas City, Missouri. Both pro teams opened their stadiums on the Missouri side of the Kansas City metropolitan area in the 1970s.
Kansas City Royals
It is yet unclear if the fund provision will stand. Some lawmakers argue it is an unnecessary distraction, among them Sen. Jeff Pittman (Leavenworth, Democrat) who believes the money raised would be far too little to attract a new time. “What happens if it’s just a pipe dream? That money is just gonna sit there for five years?,” he said, according to Associated Press.
While efforts to legalize sports betting in Kansas have stalled year after year, many lawmakers believe it is finally the time to regulate a market that already exists – only that currently operating under an illegal scheme. However, others oppose the expansion on moral grounds, fearing gambling addiction could potentially increase as a result of legalization.
Under the legislation, the state lottery and the Kansas Racing and Gaming Commission would share oversight of the new market. Casinos could enter agreements with pro sports franchises to place kiosks at a team’s facility, as part of the 50 total businesses and entities they are allowed to partner with.
The bill would enable federally recognized Native American tribes to submit a request to the Kansas governor and Kansas Lottery director to operate a sportsbook “under the substantially same terms and conditions” applied to the state’s four casinos, reports Kansas Reflector.
Original article: https://www.yogonet.com/international/news/2022/04/28/62415-kansas-legislators-weigh-directing-sports-betting-taxes-to-attract-pro-teams–including-nfl-39s-chiefs
