Dec 25, 2023; Kansas City, Missouri, USA; Kansas City Chiefs running back Isiah Pacheco (10) scores a touchdown during the first half against the Las Vegas Raiders at GEHA Field at Arrowhead Stadium. Mandatory Credit: Jay Biggerstaff-USA TODAY Sports
- A bill amending the Kansas STAR bond program has been signed into law by Gov. Laura Kelly (D)
- STAR bonds are now available to fund construction of a new stadium for the Kansas City Chiefs or Royals for up to 70% of the total cost
- The bonds would be paid back through tax revenue at the stadiums or retailers around the stadium, plus future sports betting and lottery revenue
Millions in Kansas sports betting revenue may soon be earmarked to lure Patrick Mahomes, Andy Reid, and all the other Kansas City Chiefs over the border into the state.
Kansas Gov. Laura Kelly (D) recently signed bill HB 2001 into law, which amends the STAR (Sales Tax and Revenue) bond program to potentially fund the future construction of a Kansas City Chiefs or Kansas City Royals stadium in the state.
STAR bonds are funded through future tax revenues at the stadiums, tax revenues from retailers around the stadium, and millions in sports betting and lottery revenues.
Chiefs and Royals Considering Move
According to The Kansas City Star, representatives from both the Chiefs and Royals praised the new legislation and the options it provides.
“We support their efforts to expand the existing program and congratulate them on passing the legislation in 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 to allow for the funding of one or two major professional sports complexes in the state. It allows bond funding for up to 70% of the total costs of the sports complexes, with all other STAR bond projects limited to just 50% of the total costs. The remaining 30% of the project costs would be provided by developers.
The bill now earmarks any lottery and sports betting annual revenues in excess of $71.49 million to pay off a STAR bond. Fiscal estimates show this would likely be about $10 million annually to pay off any STAR bonds.
A new Chiefs stadium complex is estimated to cost more than $2.5 billion, while a new Royals complex is estimated to cost more than $1.5 billion. The vast majority of the costs for these stadiums would be paid off by future tax revenues brought in by the stadium complexes, while sports betting and lottery revenue would be a drop in the bucket.
Missouri Rejected Tax Proposal for Stadium
Funding for a new Chiefs stadium and rumors of a potential relocation have been floated for years. In a 2022 public hearing, Missouri senators questioned Anne Scharf, Vice President, Hunt Family Foundation and Civic Affairs at Kansas City Chiefs, after rumors materialized that the Chiefs were considering options to relocate the team.
Rumors were floated during the 2022 NFL meetings after President Mark Donovan commented that the Chiefs were exploring all options for the team’s future, including building a new stadium next to Arrowhead or moving the franchise out of state.
Arrowhead Stadium currently has a lease in Missouri that runs through 2033.
However, two months ago Missouri voters in Jackson County rejected a 40-year, three-eighths cent sales tax proposal to keep the Chiefs and Royals in Missouri. Both teams dedicated to remain in the state if the proposal had passed.
The proposal was defeated by county voters, so now it seems like all options are back on the table.
Rob covers all regulatory developments in online gambling. He specializes in US sports betting news along with casino regulation news as one of the most trusted sources in the country.
Sports betting revenue has become a hot topic in many states across the country, with some lawmakers looking to capitalize on the popularity of sports betting to generate additional revenue for their state. In Kansas, there has been discussion about using sports betting revenue to attract the Kansas City Chiefs to the state.
The Kansas City Chiefs are one of the most successful and popular teams in the National Football League (NFL), with a passionate fan base and a winning tradition. The team’s success on the field has translated into economic benefits for the city of Kansas City, Missouri, where the team is currently based. However, there has been speculation that the Chiefs could potentially relocate to a different city in the future if they are unable to secure a new stadium or if they are offered a more lucrative deal elsewhere.
One potential solution that has been proposed is for the state of Kansas to use sports betting revenue to help finance a new stadium for the Chiefs in Kansas. By legalizing and regulating sports betting, the state could generate significant revenue that could be used to fund infrastructure projects such as a new stadium. This would not only benefit the Chiefs, but also the state as a whole by creating jobs, boosting tourism, and increasing tax revenue.
In addition to funding a new stadium, sports betting revenue could also be used to offer incentives to the Chiefs to remain in Kansas. For example, the state could offer tax breaks or other financial incentives to the team in exchange for their commitment to staying in Kansas. This could help ensure that the Chiefs remain a vital part of the Kansas City community for years to come.
Overall, the potential use of sports betting revenue to attract the Chiefs to Kansas is an intriguing idea that could have numerous benefits for the state. By investing in infrastructure projects and offering incentives to the team, Kansas could solidify its position as a sports destination and ensure that the Chiefs remain a cornerstone of the community.
