The Special Committee on Federal and State Affairs convened on September 22, 2025, to discuss the current status and future of sports wagering in Kansas. The meeting began with an overview of the legal framework surrounding sports wagering, presented by Mike from the advisor statutes office. He highlighted key provisions from the Kansas Constitution, noting that while lotteries are generally prohibited, exceptions exist for certain forms of gambling, including sports wagering.

Mike explained that the Kansas Lottery is responsible for managing sports wagering, which is conducted in accordance with the Kansas Lottery Act and the Kansas Expanded Lottery Act. He detailed the structure of sports wagering operations, including the requirement that wagers must be placed by individuals physically located within Kansas. The committee learned that each lottery gaming facility manager is allowed to operate up to three interactive sports wagering platforms, subject to approval by the executive director of the lottery.

The discussion also covered the financial aspects of sports wagering. Director Steven Durrell provided insights into the current contracts with sportsbooks, which are set to expire on September 1, 2027. He noted that while discussions about extending contracts had been paused due to legislative provisions, they would need to resume in 2026. Durrell emphasized that the state operates all forms of gambling, excluding tribal gaming, and highlighted the successful implementation of sports wagering in Kansas, which was launched in a remarkably short timeframe.

The committee reviewed financial data from fiscal year 2025, revealing that total wagers amounted to approximately $2.67 billion, with $2.4 billion returned to players. The state received about $17.4 million, representing 10% of the net revenue. Durrell clarified that while a significant portion of the wagers is returned to players, the retained revenue for the state is still substantial, amounting to tens of millions of dollars annually.

The meeting concluded with a discussion on the distribution of state revenues from sports wagering, including allocations to various funds such as the White Collar Crime Fund and the Problem Gaming and Addictions Fund. The committee acknowledged the complexities of revenue distribution and the importance of ongoing oversight as the state navigates the evolving landscape of sports wagering.

Overall, the meeting underscored the significance of sports wagering in Kansas, both as a source of state revenue and as a regulated activity that requires careful management and oversight. The committee plans to continue discussions on the future of sports wagering contracts and the implications for state finances in the coming years.