Volume 41 - Issue 35 - September 1, 2022
State of Kansas
Kansas Lottery
Temporary Administrative Regulations
Article 701.—SPORTS WAGERING
111-701-1. Definitions. As used in the article:
(a) “Lottery gaming facility manager” shall have the meaning provided in K.S.A. 74-8702, and amendments thereto; and shall also mean any federally recognized Indian tribe that has consented to the jurisdiction of the state, the Kansas lottery, and the Kansas racing and gaming commission for the purpose of offering sports wagering in a sports wagering management contract.
(b) “Sports wagering management contract” means a lottery gaming facility management contract, or amendment thereto, respecting the operation and management of sports wagering.
(c) “Virtual event” means a sporting or athletic event conducted on, within, or through an electronic or computerized device, contrivance or machine, regardless of whether the players or participants are real, virtual, or simulated. (Authorized by K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 25; implementing L. 2022, ch. 91, sec. 1; L. 2022, ch. 91, sec. 14; L. 2022, ch. 91, sec. 18; and K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 25; effective, T-111-8-25-22, Aug. 10, 2022.)
111-701-20. Advertisings; minimum requirements. (a) No advertisement related to sports wagering in Kansas shall target minors, persons who are ineligible to place wagers, or vulnerable persons including but not limited to problem gamblers and those who have self-excluded from sports wagering. To meet this requirement, advertising for sports wagering shall take into account the form, content, quantity, timing, media, and location of each advertisement.
(b) Lottery gaming facility managers and interactive sports wagering platforms shall not advertise related to sports wagering in Kansas until such advertisements have been approved by the executive director or designee.
(c) Each advertisement related to sports wagering in Kansas shall:
(1) identify the lottery gaming facility manager;
(2) display a toll-free number and responsible gaming message approved by the executive director or designee;
(3) be accurate in any description of the types of events and wagers accepted; and
(4) avoid urgency, false promises, or an implication that winning is the likely outcome. (Authorized by L. 2022, ch. 91, sec. 5 and K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 25; implementing L. 2022, ch. 91, sec. 5; effective, T-111-8-25-22, Aug. 10, 2022.)
111-701-30. Sports wagering. (a) No wagers on the outcome of an athletic, sporting, or other event shall be accepted or paid except as allowed in this article.
(b) No wagers shall be accepted unless they are made within the geographic boundaries of the state of Kansas.
(c) Wagers shall not be accepted on Indian lands, as that term is defined by the Indian gaming regulatory act, 25 U.S.C. § 2701, et seq., and amendments thereto, except pursuant to the terms of a gaming compact that is effective therein. (Authorized by K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 25; implementing L. 2022, ch. 91, sec. 1; L. 2022, ch. 91, sec. 2; L. 2022, ch. 91, sec. 18; effective, T-111-8-25-22, Aug. 10, 2022.)
111-701-31. Prohibited events; pre-approved sporting or athletic events; approval of wagers; revocation of approval. (a) No wagers shall be accepted or paid on:
(1) Any amateur sporting or athletic event other than an Olympic sporting or athletic event sanctioned by the International Olympic Committee;
(2) any collegiate sporting or athletic event when the lottery gaming facility or interactive sports wagering platform knows or reasonably should know that such wager is being placed by or on behalf of a coach or participant in that event;
(3) the outcome of any election for public office; and
(4) any virtual event, except when:
(A) the outcome of the virtual event is dependent on the skill of the participants; and
(B) a live display of the event is available to the lottery gaming facility or interactive sports wagering platform.
(b) Any event pre-approved for wagering shall be listed on the lottery’s website and shall describe which wager types are pre-approved for said event.
(c) A lottery gaming facility or interactive sports wagering platform may request approval of a sporting or athletic event for sports wagering. Each request shall be made in the manner prescribed by the executive director, and shall include:
(1) A complete description of the event, including the date, time, and location;
(2) the sports governing body, league, or other administrator;
(3) the nature of the event and the types of wagers sought to be approved for the event;
(4) the manner in which the winning wagers would be determined, including a complete description of any service or technology used to determine or validate the outcome;
(5) sufficient information to demonstrate that accepting wagers on the event would not affect the outcome of the event, violate any applicable laws, or affect the integrity of sports wagering offered by the lottery.
(d) The executive director may limit or condition any approval granted pursuant to paragraph (c).
(e) A lottery gaming facility manager or interactive sports wagering platform shall stop accepting wagers on any previously approved event within one hour of being directed to do so by the executive director, and shall not resume accepting wagers on any such event until allowed to do so by the executive director. (Authorized by K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 25; implementing L. 2022, ch. 91, sec. 6; and K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 6; effective, T-111-8-25-22, Aug. 10, 2022.)
111-701-32. Prohibited wagers. No wagers shall be accepted or paid on:
(a) Events that are wholly based on chance;
(b) events that carry or imply undue or excessive risk to participants; or
(c) any event where wagering could reasonably be expected to affect the outcome or integrity of the event. (Authorized by K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 25; implementing L. 2022, ch. 91, sec. 6; and K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 6; effective, T-111-8-25-22, Aug. 10, 2022.)
111-701-33. House rules. (a) A lottery gaming facility manager or interactive sports wagering platform shall adopt house rules governing wagering transactions. Such rules, including any amendments, shall not be effective until approved by the executive director.
(b) House rules shall contain provisions regarding:
(1) wager rejection, adjustments, cancelations, and overrides;
(2) event cancelations and schedule changes including weather delays;
(3) injuries;
(4) bonus time or overtime; and
(5) any other event or occurrence that could reasonably affect the terms of the wager.
(c) House rules shall be conspicuously posted in any location where sports wagering is offered, available electronically on the lottery gaming facility manager’s website, and accessible from within the interactive sports wagering platform.
(d) A lottery gaming facility manager shall not be required to use identical house rules for sports wagering within the lottery gaming facility and any approved interactive sports wagering platforms. (Authorized by and implementing K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 25; effective, T-111-8-25-22, Aug. 10, 2022.)
111-701-34. Retail sports wagering. (a) No lottery gaming facility manager shall offer sports wagering within the lottery gaming facility except as pursuant to the terms of a sports wagering management contract.
(b) The floor plan shall be submitted to the executive director or designee for approval.
(c) Sports wagering within a lottery gaming facility shall only be offered at:
(1) the window, lounge, or other areas designated on the approved floor plan;
(2) a kiosk in a location approved by the executive director or designee; or
(3) a mobile device application or website operated by an interactive sports wagering platform. (Authorized by and implementing K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 25; effective, T-111-8-25-22, Aug. 10, 2022.)
111-701-35. Free play; loyalty programs; other promotions. (a) A lottery gaming facility manager may offer free play promotions. No promotion shall be offered until it has been approved by the executive director or designee.
(b) A lottery gaming facility manager may award player loyalty points or credits based on the amount wagered. The rules of any player loyalty program, including amendments, shall be submitted to the executive director or designee and shall not be effective until approved. Each redemption of player loyalty points or credits shall conform to the rules of the player loyalty program.
(c) A lottery gaming facility manager or interactive sports wagering platform may offer promotional contests or tournaments. Any such contest or tournament shall have rules governing registration requirements and the awarding of prizes. Rules shall not be effective until approved by the executive director or designee. (Authorized by and implementing K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 25; effective, T-111-8-25-22, Aug. 10, 2022.)
111-701-36. Player accounts. (a) A lottery gaming facility manager or interactive sports wagering platform may establish online sports wagering accounts for patrons to use for the purposes of sports wagering. Online accounts shall be protected with commercially reasonable means to prevent unauthorized access and dissemination of any wagering data, personally identifiable information, and other confidential data.
(b) Each patron shall be allowed to elect not to have such patron’s personally identifiable information collected for any purpose other than recording the placing of the sports wager, payment of any prize, or as may be required by court order or applicable law.
(c) Interactive sports wagering platforms may copy, duplicate, import, merge, or otherwise move or access a patron’s pre-existing account from another jurisdiction. The interactive sports wagering platform shall ensure that all information required to accept or pay the wagers made in such an account is properly and accurately recorded, including the geographic location of the patron when the wager is placed. (Authorized by and implementing K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 25; effective, T-111-8-25-22, Aug. 10, 2022.)
111-701-50. Self-exclusion. (a) Any patron who has made a request to a lottery gaming facility manager to restrict such individual from placing sports wagers shall be allowed to withdraw any or all of their account balance, provided that the balance has cleared and the reason(s) for exclusion would not prohibit a withdrawal. Any winnings after the date of such request shall be forfeited and credited to the problem gambling grant fund established under K.S.A. 79-4805, and amendments thereto. (Authorized by K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 25; implementing L. 2022, ch. 91, sec. 10; effective, T-111-8-25-22, Aug. 10, 2022.)
111-701-60. Negative revenues. (a) A lottery gaming facility manager may carry over negative sports wagering revenue amounts to returns filed for subsequent weeks when sports wagering revenues for a week are a negative number because the sum of the winnings paid to patrons wagering on the manager’s sports wagering plus all voided wagers and excise taxes on sports wagering paid pursuant to federal law exceeds the manager’s total bets accepted from sports wagering by patrons. The negative amounts shall not be carried back to an earlier week, and moneys previously received by the lottery shall not be refunded, except if the manager ceases to manage sports wagering and the final return reported negative adjusted gross receipts. (Authorized by K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 25; implementing L. 2022, ch. 91, § 11 and K.S.A. 8710, as amended by L. 2022, ch. 91, sec. 25; effective, T-111-8-25-22, Aug. 10, 2022.)
111-701-70. Compliance with federal law. (a) Information necessary to accept or pay wagers, and information assisting in the placement of bets and wagers, shall not be transmitted in a manner that violates the gambling ship act, 18 U.S.C. § 1081, et seq., and amendments thereto, or the interstate wire act, 18 U.S.C. § 1084, and amendments thereto. Lottery gaming facility managers and interactive sports wagering platforms may employ persons outside the state of Kansas. (Authorized by and implementing K.S.A. 74-8710, as amended by L. 2022, ch. 91, sec. 25; effective, T-111-8-25-22, Aug. 10, 2022.)
Stephen Durrell
Executive Director
Doc. No. 050478
