Kansas Budget Director Adam Proffitt expressed concerns about the potential impact of a proposed Missouri constitutional amendment allowing legal sports wagering on Kansas’ gaming tax revenue. Proffitt highlighted the possibility of Missouri residents opting to place their bets in Missouri rather than crossing the border into Kansas, leading to a decrease in revenue for the state. While he didn’t provide a specific estimate, Proffitt emphasized the importance of keeping that money within Kansas.
Currently, Kansas law mandates that individuals must be physically present in the state to place bets, even if using online platforms like DraftKings or FanDuel. Proffitt mentioned witnessing Kansas City metro residents lining up on the Kansas side of the border to place bets on their phones, showcasing the popularity of sports wagering in the area.
Since the legalization of sports betting in Kansas in 2022, the state has generated $18.2 million in tax revenue. Governor Laura Kelly placed the first legal sports bet in the state, predicting the Kansas City Chiefs would win the Super Bowl LVII and winning $150. Proponents of Missouri Amendment 2 anticipate significant tax revenue growth if the initiative is approved, with projected revenue reaching $38.7 million in the fifth year of operation.
Despite the state’s current spending exceeding forecasted revenue, Proffitt reassured that Kansas’ strong ending balance and cash reserves would provide a cushion for the expenditure. The impact of the Missouri amendment on Kansas’ gaming tax revenue remains a concern as both states navigate the landscape of legal sports wagering. Missouri voters are set to decide on the initiative on November 5.
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Photo credit kansasreflector.com
