Kansas received just $1,134 in sports betting tax revenue in February despite its second-highest month in recorded handle.
Kansans placed nearly $25 million in legal bets on the Super Bowl alone. A massive 80% of wagers were on either the Kansas City Chiefs to win or on quarterback Patrick Mahomes to win MVP.
The Chiefs’ victory likely led to a dramatic reduction in KS sports betting revenue. Sportsbooks paid out $39 million in winning Super Bowl wagers.
More than $194 million was bet online, or nearly 96% of all sports betting wagers, in February. Sports wagering has been legal in the Sunflower State since September.
One book brings KS sports betting revenue
FanDuel ($2.15 million) and PointsBet ($117,856) were two of three online Kansas sportsbooks in February to post positive gross gaming revenue. FanDuel was the only operator to contribute to Kansas revenue, however. PointsBet had a negative carryover from January, so it did not contribute to state revenue last month.
Sportsbooks can carry over revenue losses month-to-month for tax purposes. This practice lowers their tax liability and, therefore, revenue to the state.
More out than in for others in Kansas sports betting
Barstool Sportsbook, BetMGM, and Caesars paid out more in winning wagers than they took in last month.
DraftKings held $1.3 million, or about 1.75%, after paying out winning tickets. In perspective, the historical hold over the last half-century in Nevada sports betting is 5.4% monthly on average.
Kansas allows operators to deduct monthly promotional spending from its revenue. That is why DraftKings, which deducted more than double its hold ($3.12 million) showed a loss last month and did not contribute to the state’s revenue.
Three apply for single HHR facility
The Kansas Racing and Gaming Commission is reviewing three applications for a single historical horse racing facility to be developed in the state. SB 84, which legalized mobile sports wagering in the state, also authorized one HHR facility to house 1,000 machines.
Three entities submitted applications before the February 28 deadline:
- Boyd Gaming
- Flint Hills Entertainment
- Phil Ruffin
The Kansas Racing and Gaming Commission has 30 days to review the applications. There is no timeline for a final award decision.