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Kansas AG rejects some Kansas Lottery regulations on sports wagering

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Posted at 6:03 PM, Aug 19, 2022
and last updated 2022-08-19 19:03:23-04

KANSAS CITY, Mo. — The Kansas Attorney General Office approved three regulations set forth by the Kansas Lottery to allow legal sports gambling in the state, but sent several others back for further review.

Before sports wagering can be implemented in Kansas, the AG’s said the Kansas Lottery must address “specific shortcomings that must be remedied” in the other regulations, according to a statement from John Milburn, public information officer for the Kansas Attorney General’s Office.

The state announced a soft launch Sept. 1 for sports gambling with a full launch expected Sept. 8.

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State regulatory bodies proposed regulations earlier this month, but they were subject to review by the attorney general’s office.

According to a letter sent Friday to the Kansas Lottery, which oversees gambling in the state, the AG’s office said regulators must:

  • Clarify the definition of “virtual event” to ensure that it isn’t overbroad, encompassing other activities such as e-sports;
  • Ensure that regulations require 20% of all marketing agreements be with a nonprofit fraternal or veterans organizations is ironclad;
  • Avoid advertising that targets “problem gamblers;”
  • Clarify who submits advertisements and sets house rules for sportsbooks;
  • Clarify the Kansas Lottery’s role in restricted locations where wagers may be placed;
  • Clarify who is restricted or excluded from gambling on events that they may influence the outcome;
  • Clarify that gambling is permitted on mobile apps within the state and not just within gaming facilities;
  • Avoid simply re-stating confidentiality, self-exclusion, revenue payment rules and retail tickets sales regulations.

Kansas Attorney General Derek Schmidt’s office is still reviewing proposed regulations from the Kansas Racing and Gaming Commission.

“We will continue to expedite that process,” Milburn said in a statement.

When the Kansas legislature crafted a sports wagering bill, which Gov. Laura Kelly signed in May, it removed oversight of proposed regulations from the Division of the Budget and Department of Administration, according to the AG’s office.

“Thus, in this case, the attorney general’s office is the only reviewer that can identify errors committed by the agencies in the hurried drafting of regulations that affect millions of dollars in wagering activity, and we take that responsibility seriously,” Milburn said in a statement.

The Kansas Lottery earlier Friday expressed optimism that all remaining legal issues could be resolved in time for the planned Sept. 1 launch.