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Minutes for HB2740 - Committee on Federal and State Affairs
Short Title
Authorizing sports wagering under the Kansas expanded lottery act.
Minutes Content for Tue, Mar 29, 2022
Chairperson Barker asked the Committee to open their folders on HB2740.
Vice-Chairperson Arnberger moved to recommend HB2740 favorably for passage, seconded by Representative Ruiz.
Chairperson Barker made a motion to amend HB2740, seconded by Representative Ruiz. (Attachment 1).
Chairperson Barker stated that this amendment changes the definition of gray machines. Gray machines are outlawed in this bill. The Revisor explained the amendment.
An oral vote was taken. Amendment #1 to HB2740 was favorably passed.
Chairperson Barker made a motion to amend HB2740, seconded by Representative Ruiz. (Attachment 2).
The Revisor stated that this amendment deals with the entities that can enter into marketing agreements with a lottery gaming facility manager. The bill allows a casino manager to enter into up to 50 marketing agreements. Ten of those agreements are earmarked for nonprofit, fraternal or veterans organizations. The amendment would change the ten agreements to twenty percent of such agreements shall be for nonprofit, fraternal or veterans organizations. If a casino were to enter into less than 50 marketing agreements, the number of nonprofit organizations would also drop to 20 percent of the overall agreements that the casino manager enters into.
Discussion ensued.
An oral vote was taken. Amendment #2 to HB2740 was favorably passed.
Chairperson Barker moved to amend HB2740, seconded by Vice-Chairperson Arnberger. (Attachment 3).
The Revisor stated that one of the provisions under HB2740 is to authorize the Kansas lottery to do on-line lottery ticket sales over the internet or other digital networks subject to certain restrictions. The amendment would strike that authorization from the bill and the Kansas lottery would not have that authority to do on-line lottery ticket sales.
Discussion ensued.
An oral vote was taken, and the Chair was unsure of the vote. A vote was taken by a show of hands. Amendment #3 to HB2740 failed to pass by a vote of eight ayes and twelve nos.
Chairperson Barker made a motion to amend HB2740, seconded by Representative Ruiz. (Attachment 4).
The Revisor stated that this is purely a technical amendment to clean up some language to go along with the provisions of section 2 that allows a casino manager to have up to three interactive sports wagering platforms. There is language on page 1, lines 22 and 23, that is being adjusted to account for multiple platforms. On page 2, line 1, the term "sports wagering manager" is no longer in the bill so the language is being updated to reflect it is a lottery gaming facility manager.
An oral vote was taken. Amendment #4 to HB2740 was favorably passed.
Representative Hoye made a motion to amend HB2740, seconded by Representative Haswood. (Attachment 5).
Representative Hoye stated this amendment comes from the testimony of the National Football League requesting that the law prohibit sports wagering on the occurrence of injuries or penalties.
The Revisor stated that section 7 of the bill that directs what casino managers must do when operating sports wagering, including several prohibitions on the conduct of sports wagering. The amendment would add a further prohibition on conducting sports wagering on the occurrence of injuries, penalties, the outcome of player disciplinary proceedings or replay reviews for any sporting events.
Discussion ensued.
Representative Hoye closed on her motion to amend. An oral vote was taken, and the Chair stated the no's had it. Division was called. The amendment to HB2740 was favorably passed by a vote of twelve ayes to nine nos.
Representative Miller made a motion to amend HB2740, seconded by Representative Ruiz. (Attachment 6) (Attachment 6A).
The Revisor stated that this amendment places some prohibitions on casino managers being able to provide a line of credit. It requires casino managers to include information and tools to assist players in making responsible decisions, including prominently displaying tools to set limits on the amount of time and money a person spends and prominently displaying information regarding compulsive gambling and ways to seek treatment and a person with the ability to exclude the use of certain electronic payment methods, if so desired. The next amendment allows a person to self-restrict themselves from placing sports wagers. There is an added provision that if that individual does go ahead and place sports wagering, they forfeit their winnings and those winnings would be credited to the problem gambling grant fund. The final provisions amend the problem gambling and addictions grant fund to change the name of the fund to the problem gambling grant fund and to specify that two percent of the lottery gaming facility revenue and two percent of sports wagering revenues are to be provided to the problem gambling grant fund.
Discussion ensued.
Representative Miller closed on his motion. The amendment to HB2740 was favorably passed.
Representative Awerkamp moved to amend HB2740, seconded by Representative Waggoner. (Attachment 7).
The Revisor stated that this amendment strikes the contents of HB2740 and replaces them with 2021 HB2444. The main thrust of this is to restrict sports wagering to only being conducted by the Kansas Lottery through interactive platforms approved by the Lottery. It does allow for a marketing agreement with a professional sports team and it creates a white collar crime fund. The main difference is that sports wagering is to be solely operated by the Kansas Lottery. All sports wagering revenues would be retained by the State and there would be no contracts with any casino managers for the operation of sports wagering.
Discussion ensued.
Representative Awerkamp closed on his motion to amend. Following an oral vote, the Chairman stated the nos had it. Division was called. Following a vote by a show of hands, the amendment to HB2740 failed by a vote of nine ayes to ten nos.
Vice-Chairperson Arnberger made a motion to reconsider by striking the language relating to the I-lottery, seconded by Representative Penn.
Representative Clayton called for point of order because she didn't recall voting on that amendment.
An oral vote was taken, and the Chair stated that the ayes had it. Division was called.
The motion to reconsider failed by a vote of 10 ayes to 12 nos.
Chairman Barker stated that he was surprised, and he adjourned the meeting at 8:55 a.m.
