Listening to the Kansas sports betting Model Legislation” for legal sports wagering legislation.
But the introduction of a new bill dubbed the “Kansas Sports Wagering Act” on Thursday by the Senate Federal and State Affairs Committee indicates that lawmakers have looked to yankees for some guidance in the formulation of a bill that is cause for some celebration by the leagues.
Senate Bill 455 (SB 455) is similar to the House Bill 2752 (HB 2752), which incorporates and grants the leagues the controversial off-the-top “integrity fee,” valuable data rights, as well as the right to restrict types of bets (such as prop bets) that sportsbooks may offer. However SB 455 is different and significant because: it creates a recalibrated royalty or “integrity fee”; it adopts a new New York-conceived data structure; it allows the states to submit for “restriction” of certain wager types, giving the Kansas Gaming Commission final say on that; and some particular language in the bill as well as timing.
Kansas Sports Betting Bill Gives Leagues Win With Bill Including Rejiggered Royalty Fee to Leagues and Data Nuance 1n2v3j
First off, a representative at the office of Kansas Senate Federal and State Affairs Chairman Bud Estes was not immediately able to identify if there was a specific legislator sponsoring this bill. “They’ll be on the floor all next week” she told SportsHandle. “No committee meeting is currently scheduled.”
As for the bill, eight key points and takeaways: 1v3e1g
(1) It formulates a new structure to pay leagues their desired “integrity fee” — 0.25% of total sports wagers (or handle) — capped at 5% of aggregate gross revenue:
It’s not the 1% (equivalent to 20-25% revenue) where the leagues started. And the bill would also allow operators to deduct from their gross revenue certain bonuses or prizes given to patrons. So, less for the leagues.
(2) Although 5% as a cap is about a quarter of what 1% off-the-top would amount to, it still may give casinos/operators pause about doing business in an environment where fees lower already low margins. From the March 13 hearing (Boyd owns Kansas casino properties):
Boyd gaming: "Doubtful if Kansas casinos would even put in sports books with that integrity fee."
— Sports Handle (@sports_handle) March 13, 2018
Hypothetical: If a rookie batter earning about $535,000 has an understanding with a rookie pitcher earning $535,000 to throw him a meatball on the third pitch of a second inning at-bat, when there’s a the possible sportsbook prop bet for the batter swatting a home run on that pitch at about 20:1 odds, how and why are the leagues better suited to evaluate? At the most basic level, a private data company can’t judge whether it’s a homer or not? A private data company can’t communicate with a Kansas or Iowa sportsbook about the origin of any big wagers coming in? A private data company and the sportsbook can’t simply correspond with the leagues about it? Let’s hear the leagues explain this scenario.
Besides, the players are earning — at a minimum — over half a million dollars. Who wants to risk a potential multi-million dollar career, and his lifelong reputation, over a comparatively small potential payout?
Boyd gaming: The prop bets already being played now in Nevada sports books and MLB has raised no objection. "During theSuper Bowl too" which stirs interest in games. And there's regulation. "I don't see any problem with that."
— Sports Handle (@sports_handle) March 13, 2018
“Do you guys still use tax dollars to build stadiums?” one senator asked.
“I think the answer to that is yes,” replied Seeley.
