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Bill

SB 502

Authorizing the adoption of administrative rules and regulations concerning sports wagering by the Kansas racing and gaming commission.

2025-2026 Regular Session

grants KRGC authority to adopt permanent sports wagering rules ensuring integrity, security, and oversight of Kansas wagering operations.

Died on House Calendar
#gamblingandgaming #rulesandregulations #administrative
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Bill Summary · SB 502

Overview

SB 502 would authorize the Kansas Racing and Gaming Commission (KRGC) to adopt certain permanent administrative rules and regulations governing sports wagering. The act would take effect upon publication in the Kansas Register. It relies on an economic impact statement prepared for the proposed rules and would be subject to a legislative ratification if the rules have an estimated $1 million or more in implementation and compliance costs over the initial five years.

Purpose and intent

  • Ensure KRGC has authority to adopt permanent administrative rules and regulations for sports wagering operations in Kansas.
  • Align regulatory approach with the Kansas Expanded Lottery Act, ensuring integrity, security, and proper oversight of sports wagering activities.
  • Standardize internal controls, reporting, and compliance similar to approaches used by neighboring states.

Key provisions

  • Authorization: Section 1 authorizes the KRGC to adopt the listed permanent administrative rules and regulations concerning sports wagering. The specific rule identifiers referenced (e.g., 112-201-1 through 112-204-7, plus others) indicate a comprehensive regulatory framework covering various aspects of sports wagering operations.
  • Scope of rules: While the exact text of each rule is not reproduced in SB 502, the fiscal note and briefing indicate these rules cover:
    • Definitions and scope of sports wagering activities
    • Accounting controls and financial reporting
    • Reserve requirements and wagering standards
    • Recordkeeping and reporting obligations
    • Payment of winning wagers and wagering transactions
    • Wager cancellation and handling of suspicious activity
    • Compliance, audits, internal controls, geofencing, and patron verification
    • Integrity, security, and testing/certification of platforms and systems
  • Economic impact and ratification: The bill references K.S.A. 2025 Supp. 77-441, which requires legislative ratification of rules with substantial anticipated costs. SB 502 would ratify those proposed permanent rules, rather than creating new, separate rules subject to later ratification.
  • Effective date: The bill takes effect upon publication in the Kansas Register.

Affected parties

  • Kansas Racing and Gaming Commission (KRGC): Gains authority to adopt and oversee permanent sports wagering regulations.
  • Lottery gaming facilities (brick-and-mortar sportsbooks) and interactive sports wagering platforms: Affected by the regulatory framework, including compliance, reporting, and internal controls.
  • The gaming and betting industry participants in Kansas: Must comply with the new, permanent rules once enacted and published.
  • General public and bettors: Indirectly affected through enhanced regulatory oversight, consumer protections, and integrity measures.

Procedural and timeline notes

  • Background: Kansas began sports wagering operations in August 2022; SB 502 builds upon existing regulatory structures by formalizing permanent rules.
  • Legislative process: The bill passed through Senate committee and was placed on Consent Calendar; referred to House committees with consent calendar consideration. It died on the House Calendar in April 2026, per action history.
  • Fiscal note: Division of the Budget estimates the proposed rules would have no direct fiscal effect on KRGC operations. The economic impact statement estimates annual implementation and compliance costs of about $297,306 for licensees and platforms, with total costs exceeding $1.0 million over the initial five years. If costs exceed the $1 million five-year trigger, legislative ratification would be required under current law.

Bottom-line impact

  • SB 502 would formalize the KRGC’s authority to adopt and implement permanent sports wagering regulations, aimed at ensuring integrity, security, and appropriate oversight of Kansas sports wagering markets.
  • It relies on established cost thresholds requiring legislative ratification of rules with substantial economic impact.
  • While the bill’s formal passage did not occur through to enactment in the reported session (died on the House calendar), the substantive regulatory framework described would standardize control over sports wagering operations and platforms in Kansas.

Compiled from official sources — confirm details with the bill’s official record.

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