Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 larry.campbell@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Larry L. Campbell, Director Laura Kelly, Governor
March 13, 2019
The Honorable Troy Waymaster, Chairperson
House Committee on Appropriations
Statehouse, Room 111-N
Topeka, Kansas 66612
Dear Representative Waymaster:
SUBJECT: Fiscal Note for HB 2204 by House Committee on Appropriations
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2204 is
respectfully submitted to your committee.
HB 2204 would prohibit the Kansas Lottery from entering into a contract or extending an
existing management contract with a lottery gaming facility manager without prior specific
authorization by the Legislature.
The Kansas Lottery indicates that the initial term of all contracts with lottery gaming
facility managers was limited to a maximum term of 15 years that could be extended by mutual
consent of the Kansas Lottery and the lottery gaming facility manager at the end of the initial term.
Alternatively, the Kansas Lottery and the lottery gaming facility manager could renegotiate a new
contract that is substantially the same as the current contract or start over with the selection of a
new lottery gaming facility manager by the Lottery Gaming Facility Review Board. The Kansas
Lottery indicates that the initial contract with Boot Hill Casino will expire on December 14, 2024;
the Kansas Star Casino contract will expire on December 19, 2026; the Hollywood Casino contract
will expire on February 2, 2027; and, the Kansas Crossing Casino contract will expire on March
28, 2032.
The Kansas Lottery and the Kansas Racing and Gaming Commission indicate that if the
Legislature does not authorize a contract extension or does not allow a new renegotiated contract
between the Kansas Lottery and the lottery gaming facility manager before the expiration date,
under the provisions of the bill, then the gaming facility would have to cease operations. However,
it is unknown if this would occur as a result of this bill. If a gaming facility ceases operations,
then state employees that regulate or monitor activity at gaming facilities could eventually be laid
off and the Lottery Gaming Facility Review Board could be reconvened to select a new lottery
The Honorable Troy Waymaster, Chairperson
Page 2—HB 2204
gaming facility manager. Currently, state-owned gaming facilities generate approximately $90.0
million to the Expanded Lottery Act Revenues Fund per year that is used to reduce state debt,
reduce KPERS actuarial liability, and increase the number of engineering graduates from the
state’s universities. Over $7.0 million in proceeds from state-owned gaming facilities are
transferred each year to the Problem Gambling and Addictions Grant Fund for the treatment of
problem gambling and other addictions, and approximately $11.0 million per year goes to the local
governments where these facilities are located. However, any potential fiscal effect would be
delayed until 2024 when the first initial contract is set to expire. Any fiscal effect associated with
HB 2204 is not reflected in The FY 2020 Governor’s Budget Report.
Sincerely,
Larry L. Campbell
Director of the Budget
cc: Stephen Durrell, Lottery
Brandi White, Racing & Gaming Commission