SESSION OF 2022
SUPPLEMENTAL NOTE ON HOUSE SUBSTITUTE FOR
SUBSTITUTE FOR SENATE BILL NO. 84
As Further Amended by House Committee of
the Whole

Brief*
House Sub. for Sub. for SB 84, as amended, would
amend the Kansas Expanded Lottery Act (KELA) concerning
the conducting of sports wagering operations by lottery
gaming facilities. The bill would add new sections to KELA
and would be a part of and supplemental to the Kansas
Lottery Act (KLA). The bill would also amend the Kansas
Parimutuel Racing Act and authorize historical horse racing.

Lottery Control of Sports Wagering (Sections 27 and 29)
Current law states decisions regarding lottery gaming
facility games are within the full control of the Lottery. The bill
would amend that provision to also include decisions
concerning sports wagering.
The bill would amend law related to oversight of lottery
gaming facility operations by the Kansas Racing and Gaming
Commission (KRGC) to include auditing of sports wagering
revenues and to require appropriate security measures where
sports wagering is located or operated.

Sports Wagering Operations (New Section 1)
The bill would authorize the Lottery to offer sports
wagering:
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
 ● In accordance with the KLA and KELA; and
● Through one or more lottery gaming facility
managers (managers) who have contracted with
the Lottery under KELA to manage sports wagering
on behalf of the Lottery, including, but not limited
to, sports wagering through an interactive sports
wagering platform and the use of any such
licensed interactive sports wagering platforms
(platform) at the primary facility of a professional
sports team pursuant to a marketing agreement
entered into between the gaming manager and the
professional sports team; and
● Through one or more platforms including the use of
any such platform at the primary facility of a
professional sports team pursuant to a marketing
agreement entered into between the Lottery and a
professional sports team.
Platforms, Compulsive Gambling (New Section 2)
The bill would limit each sports wagering manager to
three interactive sports wagering platforms that would require
approval by the executive director of the Kansas Lottery
(Lottery Director), and wagering offered through a platform
would be offered only as approved by the Lottery in
accordance with KELA. In order to be approved, the bill would
require platforms:
● Serve the public convenience;
● Promote sports wagering in accordance with
marketing plans developed by the Lottery; and
● Offer sports wagers.
The bill would require requests for approval of platforms
to be submitted to the Lottery in a form determined by the
Lottery Director. Sports wagering managers would be
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required to include information regarding the platform and
intended use of the platform. Additionally, the bill would
require all background investigation requirements required by
the KRGC to be completed before consideration of approval
and usage of platforms. The bill would state the Lottery
Director could not unreasonably withhold approval of a
platform a manager requests to be approved. Managers
would also not be required to use the same platforms.
Managers would also be allowed to apply to the Kansas
Lottery for approval of one additional graphical user interface
(also known as a “skin”) for a platform that is specific to a
professional sports team that has a marketing agreement with
such manager.
The bill would allow a sports wagering manager to
accept wagers placed through an interactive sports wagering
platform only from individuals physically located in Kansas at
the time of submitting the wager.
Compulsive Gambling
The bill would prohibit a lottery gaming facility manager
from providing a line of credit to any person engaged in
sports wagering.
The bill would require lottery gaming facility managers to
include information and tools to assist players in making
responsible decisions. The bill would require, at a minimum,
the provision of:
● Prominently displayed tools to set limits on the time
and money spent by a person on any interactive
sport wagering platform;
● Prominently displayed information regarding
compulsive gambling and ways to seek treatment
and support; and

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 ● The ability of a person to exclude the use of certain
electronic payment methods if desired by the
person.
Sports Wagering Suppliers (New Section 3)
The bill would require licensure of any person who
provides goods, services, software, or any other components
necessary for the determination of odds or outcomes of any
wager on a sporting event, either directly or indirectly, to a
manager, including data feeds and odds services.
The bill would require the KRGC to issue such license to
a person who is qualified under the bill’s provisions and any
rules and regulations adopted by the agency.
Supplier License Application
The bill would require applications to be submitted in the
form and manner prescribed by the KRGC and to also
include:
● The identity of:
○ Each person who directly owns at least a 10
percent interest in the applicant;
○ Each holding, intermediary, or parent
company that owns at least a 15 percent
ownership interest in the applicant; and
○ The chief executive officer and chief financial
officer of the applicant or the individual
holding an equivalent office with respect to
the applicant, as determined by the KRGC;
and
● Such other information as required by the KRGC.


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 The bill would specify that disclosure of any of the
following direct or indirect shareholders of the applicant would
be waived:
● Any government-created entity, including, but not
limited to, any statutorily authorized pension
investment board, or crown corporation of Canada;
and
● Any investment funds or entities registered with the
Securities and Exchange Commission (SEC),
including any investment advisor, or entities under
the management of an entity registered with the
SEC.
Supplier License Term; Fee
The bill would allow the KRGC to issue a provisional
supplier license if the applicant has submitted a complete
application and paid the required fee. Such provisional
license would have a term specified on the license of up to
one year, and the holder would be required to surrender such
provisional license upon issuance of a supplier license.
The bill would direct the KRGC to establish a license fee
for issuance and renewal of supplier and provisional supplier
licenses.
Under the bill, a supplier license would be valid for a
period of two years from issuance and could be renewed by
the licensee prior to expiration upon application and payment
of the required fee.

Marketing Agreement—Professional Sports Team (New
Section 4)
The bill would allow a professional sports team or other
marketing entity to enter into a marketing agreement with

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manager for the purpose of marketing sports wagering at the
primary facility of such team or marketing entity.
The bill would specify that such sports wagering would
be operated and managed by the manager. Additionally, the
bill would require that no owner, director, officer, employee, or
agent of the team or marketing entity would have any duties
directly related to the operation or management of sports
wagering except as expressly provided in the marketing
agreement.
Marketing Agreement Requirements
The bill would require a marketing agreement to provide
that the professional sports team or marketing entity would
promote and advertise sports wagering on behalf of the other
contracting party at the primary facility of the professional
sports team or marketing facility. The bill would allow the
promotion and advertising to include, but not be limited to:
● Advertising through signage and other media,
including electronic media;
● Allowing devices such as kiosks to be located
within the primary facility of the professional sports
team to allow patrons to engage in sports
wagering; and
● Providing access to mobile device applications that
allow patrons to access the platforms utilized by
the contracting party operating and managing
sports wagering at the primary facility or other
premises.
The bill would require any marketing agreement to
prohibit the professional sports team or other marketing entity
and any owner, director, officer, employee, or agent of the
team or entity from taking any bets, paying out any prizes, or
otherwise having any control or access to the platform or any

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other system used by the manager to operate and manage
sports wagering.
The bill would require, if the primary facility or other
premises specified in the agreement is located outside a
gaming zone, all sports wagering at such location to be
conducted through a platform.
Maximum Number of Agreements
The bill would specify any manager could not enter into
a marketing agreement with more than 50 marketing entities,
at least 20 percent of which must be nonprofit fraternal or
veterans organizations.
Marketing Agreement Approval
The bill would require any gaming manager or racetrack
manager seeking to enter into a marketing agreement to
submit the agreement to the Lottery for approval, and such
agreement would not become effective until approved by the
Lottery Director.
The bill would require an agreement that satisfies all
requirements of the KLA and KELA to be approved. However,
if the Lottery Director does not approve of the agreement, the
bill would require the parties to be notified of the denial and
provided the reasons for the denial.

Advertisements (New Section 5)
The bill would direct the Lottery to adopt rules and
regulations regarding the advertisement of sports wagering
by January 1, 2023. The bill would specify such rules and
regulations should include, but not be limited to:


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 ● Ensuring advertisements do not target children and
minors, other persons ineligible to place wagers,
problem gamblers, or other vulnerable persons:
● Including limitations on the form, content, quantity,
timing, and location of advertisements;
● Requiring the disclosure in all such advertisements
of the identity of the manager;
● Requiring provision of the toll-free number for
information and referral services for compulsive
and problem gambling; and
● Prohibiting false, misleading, or deceptive
advertisements.
Wagering Restrictions on Certain Sporting Events (New
Section 6)
The bill would authorize the Lottery to restrict, limit, or
exclude wagering on one or more sporting events by
providing notice to all managers in a form determined by the
Lottery Director. The bill would specify offering or taking
wagers on a sporting event contrary to any notice, or rules or
regulations promulgated by either the Lottery or KRGC, would
be a violation of KELA.

Prohibited Wagering, Investigations, Records (New
Section 7)
The bill would require sports wagering managers to use
reasonable methods to:
● Prohibit the manager; any director, officer, owner,
and employee of the manager; and any relative
living in the same household as such persons from
placing any wager with the manager at the

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 manager’s location or through the manager’s
platform;
● Prohibit athletes, coaches, referees, team owners,
employees of a sports governing body or its
member teams, and player and referee union
personnel from placing wagers on any sporting
event overseen by such sports governing body
(using publicly available information that may be
provided to the Lottery and KRGC by sports
governing bodies);
● Prohibit any person with access to nonpublic
confidential information held by the manager from
placing any wager with the manager;
● Prohibit persons from placing any wager as an
agent or proxy for another person;
● Prohibit from placing wagers any person known by
the manager as having been convicted of any
felony or misdemeanor offense involving sports
wagering, including, but not limited to:
○ The use of funds derived from illegal activity
to make any wager;
○ Placing any wager to conceal money derived
from illegal activity;
○ The use of other individuals to place any
wager as part of any wagering scheme to
circumvent any provision of federal or state
law; and
○ The use of false identification to facilitate the
placement of any wager or collection of any
prize in violation of federal or state law; and
● Maintain the security of wagering data, customer
data, and other confidential information from
unauthorized access and dissemination.

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 The bill would not preclude the use of internet or cloud-
based hosting of such data and information or disclosure as
required by court order, state, or federal law.
Investigations
The bill would require managers to cooperate with any
investigation conducted by the Lottery, KRGC, or law
enforcement, including but not limited to providing or
facilitating the provision of account-level betting information
and audio or video files relating to persons placing wagers.
In addition, managers would be required to promptly
report to the Lottery and KRGC any information relating to:
● Criminal or disciplinary proceedings commenced
against the manager in connection with the
manager’s operations in any jurisdiction in which
such manager operates;
● Abnormal wagering activity or patterns that may
indicate a concern with the integrity of a sporting
event in any jurisdiction in which such manager
operates;
● Any potential breach of the relevant sports
governing body’s internal rules and codes of
conduct pertaining to sports wagering;
● Any other conduct that knowingly corrupts a betting
outcome of a sporting event, including match-
fixing; and
● Suspicious or illegal wagering activities, including,
but not limited to:
○ Funds derived from illegal activity;
○ Wagers to conceal or launder funds derived
from illegal activity;
○ Agents to place wagers; and
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 ○ False identification when placing
wagers.Records
The bill would specify that information provided by a
sports governing body to a lottery gaming facility manager
must be kept confidential and not be subject to the Kansas
Open Records Act. The lottery gaming facility manager would
be prohibited from disclosing such information unless
otherwise required by the bill, the KRGC, or state or federal
law or court order. The bill would specify that these provisions
would expire on July 1, 2027, unless the Legislature reenacts
such provisions.
League Data, Personally Identifiable Information
The bill would authorize gaming facility managers to use
data from any source that provides certified league data
approved by the Lottery Director.
The bill would require any interactive sports wagering
platform used by a manager to allow an individual to elect to
not have their personally identifiable information collected for
any purpose other than recording the placing of wagers,
payment of prizes, and as otherwise permitted in the bill. The
election by an individual would be maintained by the platform
and manager until the individual cancels such election.

Required Records (New Section 8)
Sports wagering managers would be required to
maintain records of:
● All wagers placed, including personally identifiable
information of the person placing the wager;
● The amount and type of the wager;
● The time the wager was placed;

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 ● The location of the wager, including the IP address
if applicable;
● The outcome of the wager;
● Any records of abnormal betting activity; and
● Video camera recordings, in the case of in-person
wagers.
The bill would require such records to be maintained for
at least three years after the sporting event occurs. Sports
wagering managers would be required to make such records