Kansas Sports Betting Legislation Now in Place to Permit Tribal Participation

In late 2022, the Kansas legislature signed off on the legalization of sports betting legislation. While commercial online sports betting operators were given the green light t move forward with a formal launch, the Kansas Indian Nation was left temporarily on the sidelines.

This would have been a huge problem in states where Indian Tribes wield a lot of control over gambling in their respective states. That's not the case in Kansas where Tribal casinos act more as contractors with the state as opposed to operating as sovereign entities.

Clearing the Way for Tribes to Participate in the Kansas Sports Betting Community

Based on the Tribal compact that was in place, Tribal concerns were not going to be allowed to offer sports betting services. To remove the barrier, it was incumbent on the state and Indian tribes to negotiate new compacts.

It was reported on May 3, 2023, that the Prairie Band Potawatomi Nation and Gov. Laura Kelly had set forth to negotiate a new compact. The process was completed, and a new compact was sent to the Kansas State Legislature for final approval. The good news is both the House and Senate gave their respective approvals on the last day of the recently concluded legislative session.

Explaininmg the Problem

As mentioned above, gambling is treated differently in Kansas when it comes to the relationship between the government and the state's Tribes. That presented a problem because Kansas Tribes do prefer to act as sovereign entities, operating under the Indian Gaming Regulatory Act (IGRA) of 1988.

This became a problem when SB 84 (Kansas sports betting legislation) was passed last year. The language that created the problem read as follows:

“No compact … shall include sports wagering beyond the boundaries of the compacting tribe’s Indian lands.”

With one swipe of a pen, this language was removed in HB 2058. That effectively made it legal for Indian Tribes to become participants in the Kansas sports betting community moving forward.

Opposition From Commercial Sports Betting Operators was Dropped

Initially, commercial sports betting operators worked in opposition to anything that would permit Tribal participation in the Kansas sports betting community. Their opposition was created out of a sense that Tribes would be handed advantages over commercial operators.

The points of contention included

• The tribes would not be subject to the 10% revenue tax that is being charged to commercial operators
  
• The Tribes would not have to submit to the same betting options and limits
  
• Concerns over possible violations to the Kansas State Constition
  

To the credit of the Prairie Band Potawatomi Nation, they agreed to language in the new compact that would only allow them to use the same game content and betting limits as commercial operators. With this offering, commercial operators collectively agreed to drop their opposition.

Before Tribes can start taking sports bets, there is one more hurdle that needs to be cleared. The new compact has to be approved by the US Department of Interior’s Bureau of Indian Affairs. Opposition to the new compact is not expected.