Kansas Sports Betting Revenue May Be Spent Differently

Kansas sports betting revenue may soon be allocated toward an ambitious new initiative.

Earlier this summer, Governor Laura Kelly signed a bill that would allow revenue generated from sports betting in Kansas to go towards efforts to poach pro teams from Missouri. Yes, you read that correctly. The Sunflower State has designs on bringing sports teams in the Show-Me State under their umbrella. Specifically, it seems like Kansas will target the Kansas City Chiefs (NFL) and Kansas City Royals (MLB).

If you’re like us, a bunch of questions are currently floating through your head at the moment. What is the logic behind this Kansas sports betting revenue initiative? How will it work? What type of financial allocation will it require? Will Missouri combat it? Does Kansas have a high probability of being successful in its attempt to reel in the Chiefs and Royals?

Breaking Down the Details of Kansas Sports Betting Revenue Campaign

Governor Kelly signed House Bill 2001 at the end of June. And per the official details, it went into effect as of July 1.

The initiative is effectively aimed at bringing sports teams from Missouri across the border into Kansas. Naturally, there are many moving parts to the proposal. But one of the main missions is to entice organizations by creating funding for new stadium venues. Pat Evans of Legal Sports Report provides some more context for us:

“[House Bill 2001 will] allow Sales Tax and Revenue (STAR) Bonds to make up 70% of new stadium costs, using existing tax streams, including Kansas sports betting, to pay them back in hopes of attracting Kansas City teams to the state. The Kansas legislature approved the bill during a special one-day session Tuesday, 84-38 in the House and 27-8 in the Senate, and the legislation goes into effect July 1. The stadiums for the Kansas City Chiefs and Kansas City Royals are leased until January 2031. The teams are exploring options for their venues but Missouri officials and voters have yet to support any plans.

“The state would have 30 years to pay off any bonds tied to stadiums. Lawmakers decided the state could use revenues from sports betting, state lottery sales, and new sales and alcohol taxes generated in new entertainment districts created by the stadium. Kansas typically allows funding up to 50% of projects and 20-year terms for its STAR bonds”

As outlined in that final detail, this is a pretty big victory relative to normal circumstances. HB 2001 significantly increases the amount of money Kansas can funnel into this initiative while also lengthening how long the state has to pay off the bonds by 10 years.

How Serious is Kansas About Trying to Poach to the Chiefs and Royals?

While HB 2001 is grabbing plenty of headlines, many have wondered whether it’s more performative than functional. That’s fair. But from where we’re sitting, this does feel like a legitimate pursuit.

Most notably, the Sunflower State has been planning around this for a while. When online sportsbooks in the United States first launched, officials set up the Attracting Professional Sports to Kansas Fund. That fund has been collecting a percentage of Kansas sports betting revenue since September 2022.

This is to say: Governor Kelly signing HB 2001 isn’t happening on a whim. This has been years in the making. And when you combine the terms outlined in HB 2001 with the Kansas sports betting revenue already collected for the cause, it’s safe to say the Sunflower State is serious about going after the Chiefs and Royals.

Of course, the bill doesn’t specifically mention either of the teams. In fact, it doesn’t mention a singular sports franchise at all.

So how do we know Kansas wants to poach the Chiefs and Royals from Missouri? Because the HB 2001 basically says as much without actually saying it. The legislation “limits its scope to stadiums for NFL or MLB teams in a state adjacent to Kansas.” So, um, yeah. There’s no mystery here.

Sure, Missouri is home to multiple MLB teams. But the St. Louis Cardinals are not just a Show-Me State institution. They don’t have a lease that’s about to expire.

Does Kansas Have a Real Shot at Landing one of Missouri’s Pro Sports Teams?

Frankly, it’s still too early to answer this question. Kansas has plotted this move for years, but the expiration of leases for the Chiefs and Royals remains the better part of a decade away.

And yet, would state officials really devote this much time, effort and resources to a venture they deem futile? Most likely not.

Recent developments have only added fuel to the fire. For starters, another year has passed without the legalization of sports betting in Missouri. Hang-ups continue to permeate the Senate. And while pro sports teams from the state are attempting a workaround, there’s no guarantee their sports betting proposal appears on the November 2024 ballot. Nor is there an assurance the measure will pass if it does land there.

Failure to legalize sports betting in Missouri anytime soon would be a boon for this Kansas sports betting bill. Pro sports franchises stand to make a lot more money in markets that allow wagering. That puts Missouri on some semblance of alert unless their laws change.

On top of that, and perhaps more importantly, the Chiefs and Royals have failed to get the state on board with their own stadium plans. Previously, the Chiefs tried to get approval for an $800 million renovation to Arrowhead Stadium. Meanwhile, the Royals have proposed a $2 billion stadium plan that’s yet to pick up traction.

Once more, with feeling: The year 2031 is still a ways off. The Chiefs and Royals could convince the state to supply them with the resources necessary to improve or rebuild their current stadiums. Missouri could also legalize sports betting in one of the coming years. However, as long as both matters remain unsettled, we must take the latest Kansas sports betting revenue proposal seriously.

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