Kansas is using money from sports betting to try to attract major league sports teams. This could help the state’s economy and the sports teams.
Kansas Governor Laura Kelly recently signed House Bill 2001 into law, allowing the state to offer incentives to the NFL’s Kansas City Chiefs and MLB’s Kansas City Royals. These incentives are designed to entice both teams to move across the state line from Missouri.
The money for these incentives will come from Kansas’ sports betting profits. The bill changes the Sales Tax and Revenue (STAR) bond program to help attract professional sports teams to Kansas. The goal is to build a new stadium for either the Chiefs or the Royals in the state.
Kansas has already made more money than expected from sports betting, which could help attract sports teams. The Royals want a new stadium, and the Chiefs need big upgrades to Arrowhead Stadium, but Missouri can’t use sports betting money to pay for these. The Chiefs and Royals are part of a group trying to bring sports betting to Missouri. If the teams move to Kansas, it might help make that happen.
Chiefs Said To Be Considering the Move
Representatives from the Kansas City Chiefs and Kansas City Royals have expressed approval for the new legislation and its provisions, as reported by The Kansas City Star.
“We support their efforts to expand the existing program and congratulate them on passing the legislation in a special session. We look forward to exploring the options this legislation may provide,” the Kansas City Chiefs wrote in a statement.
The bill amends STAR bonds, allowing funding for one or two major professional sports complexes in the state. It permits bond funding of up to 70% of the total costs for these complexes, while other STAR bond projects are limited to 50% of the total costs. Developers would cover the remaining 30% of project costs.
Additionally, the bill designates any lottery and sports betting annual revenues exceeding $71.49 million to pay off a STAR bond. Based on fiscal estimates, this amounts to approximately $10 million annually for STAR bond repayment.
The estimated cost for a new Chiefs stadium complex exceeds $2.5 billion, while a new Royals complex is estimated at over $1.5 billion. Most of the stadium costs will be covered by future tax revenues generated by the complexes, with sports betting and lottery revenue playing a smaller role.
Not the First Time Chiefs Talk About Relocating
There have been ongoing talks about funding a new stadium for the Chiefs and possibly moving the team. In 2022, rumors increased when Chiefs President Mark Donovan mentioned looking at all future options, including moving out of Missouri. Arrowhead Stadium’s lease in Missouri lasts until 2033.
Recently, Jackson County voters in Missouri turned down a proposal for a 40-year, three-eighths cent sales tax to keep the Chiefs and Royals in the state. Because of this, all options for moving the teams are back open.
Kansas’s new law creates uncertainty about where the Chiefs and Royals will be in the future, making Kansas a possible new home for these teams. We’ll keep you updated.
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