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Minutes for HB2671 - Committee on Federal and State Affairs
Short Title
Authorizing sports wagering under the Kansas expanded lottery act.
Minutes Content for Thu, Mar 12, 2020
Chairperson Barker opened the neutral portion of the hearing on HB2671.
Chairperson Barker recognized John Goodyear who testified on behalf of the League of Kansas Municipalities (Attachment 29). He stated the League is neither for nor against sports wagering being included in gaming in Kansas. The piece of the proposed legislation that they are concerned with is the exclusion of sports gaming revenue from the definition of lottery gaming facility revenues. In current law, gaming facilities contribute either two or three percent of their revenue to local government entities depending on the gaming zone in which the gaming facility is located. This contribution helps local governments bear the increased local costs of hosting a gaming facility in their locality, such as the maintenance of streets and increased law enforcement.
Chairperson Barker recognized Scott Schneider who testified on behalf of the Kansas Restaurant and Hospitality Association (Attachment 30). He stated that this bill creates an opportunity for retailers to have Tier 1 gaming in their facilities. In addition, the Tier 2 mobile devices allows their customers to have some type of access beyond the Tier 1 betting.. They would ask that the casino or Lottery through their app project the bets onto a screen so that people in the neighborhood bars can participate.
Chairperson Barker recognized Stacie Stern who testified on behalf of FanDuel Group, Inc. (Attachment 31). She stated they are in support of a competitive mobile marketplace for sports betting in Kansas. FanDuel is a first-class sports entertainment tech company adding mobile sports betting to their list of options. Illegal sports betting is rampant in the United States. It is estimated that U.S. customers spend approximately $150 billion each year through illegal offshore websites. Offshore websites are unregulated, pay no taxes, and put customers' money and personal information at risk of being stolen. The underground betting market is also notorious for money laundering. The illegal market will likely continue to retain a significant portion of market share unless states make their legal options for sports betting attractive to new and existing sports betting customers. Addressing all these issues in a smart and forward-thinking manner will help Kansas defeat the offshore market, help them protect consumers, and maximize state tax revenue and business growth.
Mike Taylor was recognized by Chairperson Barker on behalf of Unified Government - Wyandotte County, Kansas City, Kansas (Attachment 32). He stated that his organization supports the expansion of gaming through sports betting. They are neutral on the bill, but are asking that they be allowed to share in the sports betting revenues made in the casinos as they do now from the slot machines, card games, and roulette wheels. Currently they receive three percent because they are a consolidated city and county. They are not asking for revenue from the mobile app. They also support reopening the Woodlands Race Track. He stated that if the track were to reopen, it would not include greyhound racing.
Chairperson Barker recognized JoAnn Briles-Klein who testified on behalf of Kansans Struggling With Gambling Disorder (Attachment 33). She stated that she is a licensed therapist and has worked with people with gambling disorders. The two most predictive factors of whether anyone could develop a gambling disorder is accessibility and time spent there. She would encourage the legislature to look at putting safeguards in the bill because there will be an incredible increase in suicides, divorces, bankruptcies, and white collar crimes as a result of problem gambling disorder.
Chairperson Barker stated that there was written neutral testimony from Russell Brien, Prairie Band Potawatomie Nation (Attachment 34).
Chairperson Barker opened the floor for questions to the neutral conferees. Questions were asked by Chairperson Barker and Representatives Carpenter and Awerkamp to Ms. Stern; Representative Frownfelter to Mr. Goodyear; Representative Kessinger to Don Brownlee, Director of the Racing and Gaming Commission; Representative Awerkamp to Steve Durrell of the Kansas Lottery; Representative Humphries to Ms. Briles-Klein, and Representatives Awkerkamp and Lusk to the Revisor. Chairperson Barker asked Ms. Stern to provide the Committee with a copy of the 2017 study commissioned by the American Gaming Association that she referred to in her testimony.
Chairperson Barker asked the Committee Secretary to forward a copy of the fiscal note on SB283 to the Committee members.
There being no further business, Chairperson Barker adjourned the meeting at 10:13 a.m.
