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Minutes for HB2792 - Committee on Federal and State Affairs
Short Title
Creating the Kansas sports wagering act.
Minutes Content for Wed, Mar 28, 2018
Chairperson Barker opened the hearing on HB2792. Jason Long, Revisor, provided an overview on the bill (Attachment 8). Questions were asked by Representatives Houser, Humphries, Carpenter, Whitmer, Ellis, Rafie, and Highland.
Representative Jan Kessinger testified as a proponent of HB2792 (Attachment 9). This bill positions Kansas to take advantage of a state's rights ruling if the United States Supreme Court decides that states may regulate sports betting. It opens the door for Kansas to take advantage of what is being done in illegal betting right now. HB2792 is not an expansion of gaming; rather, the embracing and regulation of gaming methods currently being done either illegally or via other states. It is estimated this will bring in an additional $75 million to the state. It's his understanding from the Governor's Office that the Lottery now supports this bill. Representative Weber had a question.
Chairperson Barker stated that he was going to hold questions until the end if there is time.
Chairperson Barker recognized Dan Spillane who testified as a proponent (Attachment 10). The time has come for a safe and legal way for sports fans to wager on sporting events while protecting the integrity of the underlying competitions. They support the general framework of HB2792, which addresses the five key components of sports betting legislation. There are provisions, however, that need improvement. The question has been raised of why leagues should get a share of the bets that are placed on their games. They invest billions of dollars to create the product that is the backbone of sports betting. You couldn't have sports betting without the games that they stage, the fan interest they cultivate and the investments they make into that product. Normally when you provide key input into someone else's business or industry, you get compensated for the value that you provide, and they feel it is fair for them to receive a small percentage of the total amount bet on their games. In addition, it is sensible for them to receive compensation because the risk is theirs when there is a scandal. If something goes wrong, it goes against their product, whereas if NBA bets go away for a casino, they have other lines of business to rely on and thrive on. In addition, they will have to spend more money to investigate, monitor, and enforce their rules. They also believe it is necessary to have a mobile component in the bill because that's how you shift people from the illegal market to the legal market. Representatives Miller and Rafie had questions.
Chairperson Barker stated that they have run out of time today. He will leave the hearing open for the opponents to be heard. He noted that there was written proponent testimony from Bryan Seeley, Major League Baseball (Attachment 11) and Kevin Uhlich, Kansas City Royals (Attachment 12). Testimony has also been submitted by opponents Whitney Damron, Kansas Entertainment, LLC (Attachment 13); Kevin Fowler on behalf of the Kansas Star Casino, the Boot Hill Casino & Resort, and the Kansas Crossing Casino (Attachment 14); Dan Shapiro of William Hill US (Attachment 15); and Clark Stewart, Butler National Corporation (Attachment 16). There is written neutral testimony from Andy Cunningham, Sportradar (Attachment 17).
There being no further business, Chairperson Barker adjourned the meeting at 9:24 a.m.
