September financial numbers released at Wednesday's meeting of the Kansas Lottery Commission showed a sports betting handle among the six licensed sportsbook operators of $160.5 million but just $1.29 million in revenue, giving the state $129,000 in new tax revenue.
The state law enacted this year in Kansas enables the operators to deduct their promotional credits from taxable revenue, which particularly at launch tends to restrict the level of earnings, compared to the higher gross from losing wagers.
“We're told by the industry this is normal at start-up and, keep in mind, this is one month,” said Keith Kocher, Kansas Lottery gaming facilities director. “We're still going through player acquisition and building a database of players as we go along. We're assured by the casinos and all the experts that, 'Hey, this is normal.'”
Six operators are active, with more possible
Kansas had a soft launch on Sept. 1, and the six approved operators began taking bets on all sports on Sept. 8. FanDuel, DraftKings, BetMGM, Caesars Sportsbook, Barstool Sportsbook, and PointsBet are all active in Kansas.