Kansas Gathers $26 Million from Sports Gambling to Attract Missouri Sports Teams
Kansas has accumulated more than $26 million in a dedicated fund to attract professional sports teams, strengthening its position in the ongoing competition with Missouri. The Attracting Professional Sports to Kansas Fund, now totaling over $26.2 million, is derived from sports betting revenue and is intended to finance efforts to relocate teams, such as the Kansas City Chiefs or Kansas City Royals, across the state line.
Both Kansas and Missouri have long pursued their region's professional franchises through competing tax incentives and construction offers. Kansas lawmakers approved an extension through the end of this year for teams to accept hundreds of millions in stadium funding.
Missouri lawmakers passed their own incentives package earlier this year, further intensifying the rivalry. The state will launch the legal Missouri sports betting market on Dec. 1.
Sen. Mike Thompson of Shawnee recently questioned how Kansas quietly built up such a sizable fund. The legislation authorizes the money to be used for principal or interest on bonds related to the construction or renovation of a professional sports facility, or other developments linked to it.
Funding primarily comes from sports betting, which was legalized in 2022 and attracts bettors with Kansas sportsbook promos. Kansas allows gaming facility managers to retain 90% of sportsbook income, while the state takes 10%. After allocations to funds for white-collar crime and gambling addiction, 80% of the remainder is allocated to the professional sports fund. In fiscal year 2024, roughly $8.7 million was added.
None of the funds has yet been used, according to Senate President Ty Masterson's office. Officials said the money would be reallocated if recruitment efforts failed.
Kansas considers changes to revenue model
As Kansas weighs options for utilizing its growing sports fund, lawmakers are also revisiting the state's taxation of sports wagering. Legislators revealed in September that Kansas received less than 1% of more than $2.7 billion in bets during the past fiscal year. With sportsbook contracts nearing expiration, the state faces mounting pressure to reassess its revenue model.
A legislative hearing in Topeka marked the first discussion on sportsbook market reforms since a temporary halt on contract renewals earlier in 2025. Lawmakers examined potential adjustments to the revenue allocation formula, with Kansas retaining only about $17 million, or 0.6%, in fiscal year 2025.
Some legislators questioned whether the 10% tax rate on operator revenues was sufficient. Rep. Francis Awerkamp said that, in his opinion, Kansas' ranking showed failure. Industry representatives countered that the state's smaller population limited its total intake.
Kansas currently ranks 29th out of 33 states for sports wagering tax revenue per $1 million wagered.
Missouri's launch of legal sports betting on Dec. 1 also adds urgency. Kansas currently permits six sportsbook operators - BetMGM, Caesars, DraftKings, ESPN BET, FanDuel, and Fanatics - through five-year contracts expiring in 2027.
The state’s casino executives also called on legislators not to make changes to the state model, fearing that separating sportsbooks from casinos might upset established relationships and deliver less economic impact.
