The tax money generated by sports betting in Kansas hit its highest total yet in November, but that might not be enough to ease rising concerns in the state about its cut of the legal wagering action.
Figures recently reported by the Kansas Lottery show the state's retail and online sports betting sites handled almost $186.4 million in bets during November, down slightly from the $189.9 million reported for October.
According to the monthly numbers, the state's six online sportsbooks handled about $177.1 million in bets last month, while three brick-and-mortar casinos took $9.3 million in wagers. Operators also paid out nearly $167.3 million in winnings last month, which works out to $19.1 million in gross revenue, or a hold rate of 10.2%.
However, operators deducted almost $6.5 million in bonus bets and other promotions from their receipts, as well as $450,591 in federal excise taxes, leaving them with $12.2 million in net revenue. After applying the 10% tax rate in Kansas, and making certain other adjustments, the state's share of the action in November was $795,784.
A taxing dilemma
While November’s monthly tax haul was the biggest yet for the state, it probably won’t be enough to quiet concerns that have recently cropped up in the wake of reporting on the process that led to the launch of legal sports betting in Kansas by the New York Times. The newspaper used the sometimes-chummy lobbying efforts that went on in Kansas for part of a series on the industry, which has prompted reflection by lawmakers in some states.
Kansas and others have also had to grapple with lower-than-hoped-for tax revenues from sports betting that have prompted changes, including phasing out promo deductions. Kansas Gov. Laura Kelly even signaled recently that it's possible lawmakers could revisit the state's sports-betting law, although they may give it more time before doing so.
The third month of legal sports betting in Kansas pushed the state's total handle to $536.8 million in settled wagering thus far, but that has translated into a paltry $1.07 million in tax revenue. The bulk of that money is supposed to go to a fund that aims to attract professional sports teams to Kansas.
Meanwhile, the leading operator by mobile sports betting handle last month in Kansas was DraftKings, which took $76.2 million in wagers and generated $4.6 million in net revenue. FanDuel finished second with $50.6 million in handle and $4.9 million in net revenue.
