The launch of legal sports betting in Kansas ran into a bump in the road on Friday, as the state’s attorney general rejected several wagering-related regulations that the legal office says need fixing.
A “soft launch” of online sports betting is expected on September 1 in Kansas, followed by a full launch a week later. Several mobile sportsbooks are expected to go live in the state as soon as possible.
However, according to a press release, the office of Kansas Attorney General Derek Schmidt went over the state lottery’s proposed rules for retail and online sports betting and found several issues that need work.
“The attorney general’s office has completed its expedited, but thorough, review of the several proposed regulations from the Kansas Lottery related to sports wagering and has approved three of those regulations and returned the others to the Kansas Lottery identifying specific shortcomings that must be remedied,” said John Milburn, public information officer for the AG’s office, in a statement. “We look forward to the Lottery quickly resolving these legal problems and resubmitting the regulations.”
The AG’s office noted that proposed regulations are ordinarily reviewed by the Division of the Budget and Department of Administration as well, but the state’s sports-betting law exempted the sports-betting rules from their scrutiny.
“Thus, in this case, the attorney general’s office is the only reviewer that can identify errors committed by the agencies in the hurried drafting of regulations that affect millions of dollars in wagering activity, and we take that responsibility seriously,” Milburn said in the statement.
Separate regulations proposed by the Kansas Racing and Gaming Commission last week are still being reviewed by the AG’s office, “and we will continue to expedite that process,” Milburn said.
What does it mean?
What the AG’s regulatory qualms mean for the forthcoming launch of legal sports betting in Kansas remains to be seen. A spokesperson for the Kansas Lottery did not respond to an email from Covers before this story was published.
There could be a political dimension to the issue as well. Schmidt, notably, is running for governor against current Gov. Laura Kelly, who announced the start date for sports betting and signed the state's wagering bill into law.
“Legalizing sports betting is a common-sense solution that keeps Kansans’ money in Kansas and drives business to sporting events, casinos, restaurants, and other entertainment venues,” Kelly said in an August 18 press release. “I want to thank all our partners for working with us to get this done in time for football season.”
