By Ryan Bologna
The sports betting industry has seen tremendous growth over the last couple of years, and the obvious reasons have been covered. However, an interesting development took place in Kansas. Legal sports betting is set to launch in the state in September, right before the start of the 2022 NFL season. Almost everyone knows that sports betting can bring in a ton of money for states, but the way Kansas plans to use the tax revenue is unique.
Kansas is in such a unique position because of the Chiefs. Here’s how. The state of Kansas is planning on putting a 10% tax on all bets. The first $750,000 raised from that will go towards investigating white-collar crimes related to gambling. After that, the money raised from sports betting will go towards trying to woo the Chiefs with an offer for a new stadium.
Kansas City is split between Kansas and Missouri, which creates a power struggle between the states. The Chiefs currently play in Missouri, but Kansas badly wants to attract them to come. Sports betting likely won’t be enough to convince the Chiefs alone, but it could foot a good portion of the bill. There has been speculation that legalizing medical marijuana could create enough tax revenue to make it work. Chiefs owner Clark Hunt said that renovating Arrowhead Stadium is the team’s number one priority, so it will take a great offer to get the Chiefs to leave.
Arrowhead is an iconic venue, but sometimes renovation isn’t worth it compared to just getting a new stadium. One of the main examples is the New York Yankees. The fanbase loved the old stadium and how loud it got, but the reality was it just wasn’t going to be safe enough even with renovations. A support beam fell during the 1998 season, and the team eventually moved to a new stadium across the street in 2009. Depending on the condition of Arrowhead Stadium, Kansas could be in a position to make an offer that the Chiefs can’t refuse.
If this actually works for Kansas and the state gets the Chiefs to move, this could be a great example of how valuable sports betting can be. States who haven’t legalized it yet could see how Kansas got creative with tax revenues to help itself. Those states could follow that blueprint and use that money to try to either attract a professional team, or use it in a different area. What happens if the Cheifs say no and renovate Arrowhead? Well, the Royals play right next door as well, although they are in no need of a new stadium. Regardless, sports betting will bring in a lot of tax revenue for the state, and even if the state isn’t able to attract the Chiefs, it should be able to find a use for that money.
Photo Credit: Chris Murphy
