Kansas Gamblers Bet Nearly $200M on Sports in February

June 21, 2023 | Reveue

The State Made $1,100 in Tax Revenue
Sportsbooks were able to write off $80 million in promotional credits

KANSAS (June 20, 2023) — Gamblers in Kansas wagered more than $194 million in February as the Kansas City Chiefs played in the Super Bowl.

The state received only $1,134 of that in tax revenues in the same month, the Wichita Beacon reported.

The reason for the low revenue figure is a provision buried in the 84-page law. It allows sportsbooks to deduct “free plays or other promotional credits” before assessing the state tax.

The companies spent heavily to attract new customers around the NFL championship game.

The sportsbooks in Kansas have claimed nearly $80 million in promotional deductions from September 2022 through April 2023, according to numbers reported by the Kansas Lottery.

Sports betting companies in the state did send more than $450,000 to the federal government in February.  That’s because the IRS does not allow promotional credits to be used as deductions.

After the newspaper published the story the administration issued a statement stating: “Governor Kelly agrees there are aspects of the sports betting legislation that could be improved. She will continue to discuss any potential changes with legislators.”

Kansas legalized gambling in 2022. It still hopes to take in more than $1.8 million in tax revenue this year.

Other states are bringing in much more tax revenue. New York reported bringing in $542 million in taxes in the first year of legalized gambling.

It has a whopping 51% tax rate on gambling earnings.

SOURCE: The Messenger.

Tags: , ,