SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE SUBSTITUTE FOR
HOUSE BILL NO. 2058
As Amended by Senate Committee of the Whole

Brief*
Senate Sub. for HB 2058, as amended, would amend
law to authorize any gaming compact concerning sports
wagering to include provisions governing sports wagering
outside the boundaries of Indian lands.
The bill would amend the Kansas Parimutuel Racing Act
to credit tax revenue generated from wagers on historical
horse races to the Kansas Horse Breeding Development
Fund and the Horse Fair Racing Benefit Fund. One-third of
the tax revenue generated from wagers on historical horse
races would be credited to the Kansas Horse Breeding
Development Fund and two-thirds would be credited to the
Horse Fair Racing Benefit Fund.
The bill would also remove the exemption in the Kansas
Indoor Clean Air Act for the gaming floors of lottery gaming
facilities or racetrack gaming facilities.
The bill would be in effect upon publication in the
Kansas Register.

Background
The Senate Committee on Federal and State Affairs
removed the contents of HB 2058, inserted its amended
contents of SB 322, and recommended a substitute bill.
____________________
*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
 [Note: As passed by the House, HB 2058 would have
amended provisions of the Kansas Liquor Control Act to
require remittance of gallonage taxes by holders of a special
order shipping license to be submitted to the Secretary of
Revenue monthly rather than quarterly as required in current
law.]

SB 322 (Sports Wagering)
SB 322 was introduced by the Senate Committee on
Federal and State Affairs at the request of a representative of
Prairie Band Potawatomi Nation.
Senate Committee on Federal and State Affairs
In the Senate Committee hearing, representatives of the
Governor’s Office and the Prairie Band Potawatomi Nation
provided proponent testimony. The proponents stated the bill
would allow negotiations to continue regarding the gaming
compact between the State of Kansas and Prairie Band
Potawatomi Nation.
Opponent testimony was provided by representatives of
Boot Hill Casino and Resort, Kansas Crossing Casino and
Kansas Star Casino, and Kansas Entertainment, LLC. The
opponents generally stated the bill would expose the State to
the risk of litigation and loss of revenue and create a
disadvantage for managers of state-owned casinos.
The Senate Committee removed the contents of HB
2058, inserted modified contents pertaining to sports
wagering and historical horse races (SB 322), and
recommended a substitute bill be passed.

Senate Committee of the Whole
The Senate Committee of the Whole amended the bill to
remove the exemption in the Kansas Indoor Clean Air Act for
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gaming floors of lottery gaming facilities or racetrack gaming
facilities.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on SB 322, as introduced, the Kansas Lottery,
Kansas Racing and Gaming Commission, and State Gaming
Agency (part of the Kansas Racing and Gaming Commission
that regulates tribal gaming) cannot estimate the fiscal effect
for the enactment of the bill because the terms and conditions
that would be included in a potential gaming compact are
unknown.
In addition, the fiscal effect regarding the operations of
the Kansas Lottery, Kansas Racing and Gaming Commission,
and State Gaming Agency cannot be estimated. Depending
on the terms and conditions including in a gaming compact,
the bill has the potential to reduce the state’s share of sports
wagering revenue generated from the contracts between the
Kansas Lottery and lottery gaming facility managers that
allows sports wagering in the state. In addition, there would
be potential for one or more of the existing lottery gaming
facility managers would take any legal action in response to
this legislation.
The Office of the Attorney General indicates the bill has
the potential to increase litigation costs starting in FY 2024.
However, the Office did not provide an estimate of the
additional litigation costs or how long the estimated litigation
costs would continue from enactment from the bill. Depending
on current workload, the Office indicates that the bill could
require it to hire outside counsel to defend the State.
Also, the bill has the potential to increase litigation in the
courts. If it does, the Office of Judicial Administration (OJA)
indicates that there would be a fiscal effect on the operations
of the court system. The OJA indicates that it is not possible
to estimate the number of additional court cases that would
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arise or how complex and time-consuming the cases would
be. However, the fiscal effect would most likely be negligible
and could be accommodated within existing budget
resources.
Any fiscal effect associated with enactment of SB 322 is
not reflected in The FY 2024 Governor’s Budget Report.
Gaming; gaming compact; sports wagering; historical horse races; State Racing
Fund; Kansas Horse Breeding Development Fund; Horse Fair Racing Benefit Fund;
Kansas Lottery; Kansas Racing and Gaming Commission; State Gaming Agency;
Kansas Indoor Clean Air Act


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Statutes affected:
As introduced: 41-350
S Sub for: 46-2305, 74-8823
{As Amended by Senate on Final Action}: 21-6109, 21-6110, 46-2305, 74-8823
Enrolled - Law effective April 27, 2023: 46-2305
Enrolled: 46-2305