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Minutes for HB2068 - Committee on Federal and State Affairs

Short Title

Creating the Kansas sports wagering act.

Minutes Content for Wed, Jan 30, 2019

Chairperson Barker opened the informational hearing on HB2068.  Jason Long, Revisor, provided an overview of the bill (Attachment 8).  Questions were asked by Representatives Ruiz, Houser, Carpenter, Karleskint, Awerkamp, and Erickson. 

Chairperson Barker recognized Scott Schneider as a proponent of HB2068 (Attachment 9).  The Kansas Restaurant and Hospitality Association supports this bill.  There are many restaurants and sports bars who would be interested in being retailers for sports betting under the Kansas Lottery.

Chairperson Barker stated that Jasen Mangrum indicated he wanted to testify as a proponent of HB2068, but he did not provide any written testimony.  Chairperson Barker asked if Mr. Mangrum was present to testify, and he was not.

Chairperson Barker stated that there was written proponent testimony from Dan Spillane, National Basketball Association (Attachment 10);  Bryan Seeley of Major League Baseball (Attachment 11); Griffin Finan of DraftKings (Attachment 12); and Stacie Stern of FanDuel Group (Attachment 13).

Chairperson Barker recognized Whitney Damron, representing Hollywood Casino, as an opponent to HB2068 (Attachment 14).  He expressed a number of concerns with this bill.  First and foremost, they don't think it's appropriate for a percentage of the revenue stream to go back to the major leagues.  That provision has not been found in any other sports wagering bill that has been passed in the country.  The same is true with the major leagues having control over the data on second tier wagers.  He also went over what they feel should and should not be included in a sports wagering bill.

Terry Humphrey then testified in opposition to HB2068 (Attachment 15).  The animal advocacy groups she represents are opposed to greyhound racing, but take no position on sports wagering.  They would request that racetrack gaming facilities be removed as a permissible venue for sports wagering under HB2068.

Chairperson Barker recognized Kevin Fowler representing Kansas Star and Kansas Crossing Casinos as an opponent to HB2068 (Attachment 16).  They feel the Lottery should not be permitted to offer sports wagering either directly, over the internet or through more than 1,700 Lottery outlets throughout the state.  They are also against the sports betting integrity fee going to the major leagues.  No other state has it.  They are also opposed to the major leagues monopolizing the use of official league data in determining the results of tier 2 bets.

Chairperson Barker allowed the Committee to ask questions of the opponents.  Questions were asked by Representatives Karleskint, Humphries and Awerkamp to Mr. Damron, and by Representatives Carpenter and Chairperson Barker to Mr. Fowler.

Chairperson Barker asked if there were any other opponents.  Seeing none, he recognized Philip Bradley as a neutral on HB2068 (Attachment 17).  Mr. Bradley requested that the on-premise facilities be allowed the opportunity to apply to do whatever sports betting is allowed through legislation. 

Chairperson Barker closed the hearing on HB2068

Chairperson Barker stated that there have been a number of questions come up, he has decided to appoint a subcommittee to address a couple of issues relating to sports betting.  The subcommittee will consist of seven members:  Vice-Chairperson Awerkamp (who will chair the subcommittee), Representatives Burris, Erickson, Houser, and Kessinger (who will act as co-chairperson), Clayton and Woodard.  The subcommittee will be allowed to meet three times.  They will probably meet when the House Federal and State Affairs Committee does not meet, which will be either on a Friday or a Monday in Room 346-S.  Connie Bahner will be available to take the minutes.  The questions they are to address are:  1)  Should casinos be the only entity under the Lottery that would be able to use apps for sports betting and/or should all entities, such as retailers, be able to use apps for sports betting.  2)  How many apps should there be -- just one for the Lottery or should there be a number of different apps, with the casinos each having their own apps?  3)  Should the leagues or the governing bodies get a percentage?  4) Any other issues that come up in the subcommittee that the Chairman thinks needs to be addressed.  The subcommittee should report back to the Committee before turn-around. 

Chairperson Barker asked if there were any further requests for bill introductions.  There were none.

Seeing no further business, the Chairperson adjourned the meeting at 10:10 a.m.