Legislators at Kansas have allegedly been warned that bringing legalized sports gambling to ‘The Sunflower State’ may not end up being the magic pill that will assist them to solve an estimated $320 budget shortage.
Revenue cannibalization warning:
Based on a Sunday report from local television broadcaster, WDAF-TV, the caution came as part of a study from The Pew Charitable Trusts and included the caveat that any new revenues from sports betting are most likely to have been cannibalized from different resources like the state’s casinos.
“States could experience short-lived gains followed by downward pressure on revenues as an increasing number of states legalize,” see a statement from one of the authors of the study, Mary Murphy.
No sports betting bonanza:
Murphy reportedly declared that it is difficult to gauge the monetary benefits of legalized sports betting because the action isn’t yet prevalent. However, she warned Kansas against counting on a bonanza because gaming and adult goods like alcohol and tobacco now only bring in roughly 3.3% of the state’s tax revenues.
“The revenue flows will probably be small,” read the statement from Murphy.
Although Kansas is home to numerous commercial and aboriginal casinos, May’s judgment from the United States Supreme Court invalidating the Professional and Amateur Sports Protection Act (PASPA) national prohibition prompted Kansas State Senate President, Susan Wagle, to begin pushing for the state-wide legalization of sports betting.
“The legalization of all sportsbetting can help decrease illegal gaming operations and permit states to bring their regulations into the 21st Century,” read a May statement from the Republican legislator. “I’m confident the Kansas Legislature will act appropriately to govern sportsbetting next year.
