Gambling Laws of Kansas Legal State of Gambling

History and Timeline for Kansas Online Gambling

This timeline outlines the sequence of events that culminated in the legalization of gambling in the state of Kansas.

In the history of Kansas gambling, online casinos have yet to gain legal footing. While recent changes in law have greenlit sports betting, online casinos remain unaddressed by legislation. Unlike the progression seen in other regions embracing online casino gaming, Kansas has focused solely on permitting sports wagering, leaving a distinctive void in its gambling landscape without the legal framework for online casino operations. This distinct approach sets Kansas apart, emphasizing sports betting authorization while omitting provisions for online casino ventures.

• 1986: Kansas voters amend Article 15, Section 3b of the Kansas Constitution, enabling the state to regulate horse and dog racing along with pari-mutuel wagering.
• 1987: The Kansas Parimutuel Racing Act is passed by the state Legislature, establishing the Kansas Racing Commission (KRGC) to oversee and license pari-mutuel wagering and racing activities.
• 1989: Woodlands Racetrack in Kansas City becomes the inaugural facility regulated by the KRGC, initially featuring a greyhound track and subsequently adding a horse racing track in its second year. Wichita Greyhound Park in Wichita also opens as the second commercially regulated track.
• 2001-2006: Multiple attempts to introduce new gambling legislation in the Kansas Legislature are made annually but consistently fail to pass.
• 2005: Stephen Martino assumes the role of executive director of the agency overseeing gambling regulations.
• 2007: The Kansas Expanded Lottery Act (KELA) emerges, permitting the state to own and operate “destination casino resorts” in four designated gaming zones across the state. KELA also authorizes licensed pari-mutuel tracks to partner with the Kansas Lottery, allowing electronic gaming machines (slot machines) at these tracks.

Legalization of Sports Betting in Kansas

• 2018: The Kansas Legislature holds hearings on sports betting bills, exploring options such as authorizing the Kansas Lottery to conduct wagering at lottery retailers and in partnership with gambling and horse racing facilities.
• 2019: Despite early momentum, disagreements over who should oversee sports betting stall legislative efforts. The Kansas Constitution specifies state management of gambling, leading to conflicts over proposals involving the lottery's 50% tax rate and opposition from casino companies.
• 2020: The Senate approves a bill authorizing sports betting at state-owned casinos with varying tax rates for in-person and online wagers. However, disparities between the Senate and House bills, such as wagering at lottery retailers and tax rates, hinder legislative progress.
• 2021: The Senate passes a bill expanding the state lottery and allowing casino partnerships with online sportsbooks. The House rejects the bill, primarily due to differences in lottery-run sportsbooks and tax rates. Gov. Laura Kelly's previous resistance to sports betting adds complexity.
• 2022: After several sessions and amendments, the House incorporates compromise bill language into SB 84, enabling sports betting at Kansas casinos. Agreements between chambers and the governor's signature lead to the law's enactment on May 12, with a soft launch on Sept. 1 and full commencement on Sept. 8. The opening prompts significant betting activity, with FanDuel and DraftKings dominating the market, accounting for over 70% of the betting handle, while GeoComply data shows substantial participation from Missourians, particularly from Kansas City.

Legalization of Online Gambling in Kansas

Kansas holds a stance declaring online gambling as illegal, although the exact status remains somewhat ambiguous. The Kansas Expanded Lottery Act facilitates the establishment of state-operated casino resorts and grants permission to four Native American tribes for casino construction. The legalization of parimutuel wagering for horse and dog racing adds to the gambling landscape. Despite these developments, the precise direction regarding the legalization of online gambling in Kansas remains uncertain, as regulations and clear guidelines concerning this form of gambling continue to be indeterminate.