Sports gambling may not be profitable in Kansas

A report by the Pew Charitable Trusts postulates that sports betting will not boost revenue of Kansas in the short term.

As a number of US states are gearing up for sports betting legalisation, this report assumes significance. The foundation concludes that sports wagering would not be the “magic pill” to cure state budget issues as it may cannibalise other segments in the gambling industry.

“States could experience short-lived gains followed by downward pressure on revenue as more and more states legalise,” Mary Murphy (one of the authors of the study) said. She further explained that tax collections may not be new revenue but just money cannibalised from casino-related taxes.

“The legalization of sports betting will help diminish illegal gambling operations and allow states to bring their regulations into the 21st century,” Republican Senate President Susan Wagle said after the Supreme Court struck PASPA down and assured: “I am confident the Kansas Legislature will act appropriately to regulate sports betting next year.”

However, according to the study by Pew Charitable Trust and Ms Murhpy, “the revenue streams will likely be small.”

Source: focusgn.com