Kansas Sports Betting Revenue to Support Campaign for New Stadiums

The initiative aims to entice Kansas City teams, such as the Chiefs and Royals, to relocate to Kansas. The Kansas legislature approved the bill during a special session, and the legislation will take effect on July 1.

Economic Development Strategy

The STAR Bonds program is a key economic development tool for Kansas. Governor Kelly highlighted the program’s potential to boost private investment and modernize the state’s economic infrastructure.

By adjusting the STAR Bonds program, Kansas lawmakers have created a compelling financial package to attract professional sports teams, a move that could significantly enhance the state’s economic landscape.

The state plans to repay the bonds over 30 years using revenues from sports betting, state lottery sales, and new sales and alcohol taxes generated in the proposed entertainment districts surrounding the new stadiums.

Kansas typically allows funding up to 50% of project costs with a 20-year term for STAR bonds, but this new legislation extends these limits to 70% funding and 30-year terms specifically for NFL and MLB stadiums in neighboring states.

Stadium Costs and Legislative Scope

The Kansas City Star reported that new stadiums for the Chiefs and Royals could cost at least $2 billion and $1.5 billion, respectively.

While the legislation does not explicitly name the Chiefs or Royals, it is tailored to attract NFL and MLB teams from states adjacent to Kansas.

Governor Kelly called the special legislative session to address tax cuts and finalize the stadium funding strategy. The legislation aligns with Kansas’ broader efforts to legalize sports betting, established in 2022, which included creating the Attracting Professional Sports to Kansas Fund. T

his fund receives 80% of sports betting tax revenue, after allocations to the White Collar Crime Fund, to support the initiative.