Volume 45 - Issue 17- April 23, 2026
State of Kansas
Kansas Racing and Gaming Commission
Notice of Hearing on Proposed Administrative Regulations
A public hearing will be conducted at 10:00 a.m. July 17, 2026, at the Eisenhower State Office Building, 700 SW Harrison, Suite 450, Topeka, Kansas, to review and consider the adoption of proposed permanent regulations of the Kansas Racing and Gaming Commission. The public hearing will be conducted in person only.
This 60-day notice of the public hearing shall constitute a public comment period for the purpose of receiving written public comments on the proposed regulations. All interested parties may submit written comments prior to the public hearing to James Bain, General Counsel, 700 SW Harrison, Suite 500, Topeka, KS 66612 or by email to krgc@ks.gov. All interested parties will be given a reasonable opportunity to present their views orally regarding the adoption of the proposed regulations during the public hearing. In order to provide all parties an opportunity to present their views, it may be necessary to request that each participant limit any oral presentation to five minutes.
Any individual with a disability may request an accommodation in order to participate in the public hearing and may request the regulations and economic impact statement in an accessible format. Requests for accommodation to participate in the public hearing should be made at least 10 business days in advance of the hearing by contacting James Bain, General Counsel, 700 SW Harrison, Suite 500, Topeka, KS 66612 or by phone at 785-296-5800. Handicapped parking is located at the north entrance to the building across 7th Street. Curbs in the parking lot north of the entrance are accessible to individuals with disabilities.
Copies of the regulations and economic impact statement may be viewed at https://krgc.kansas.gov/legal/regulations/pending-regulations/.
Summaries of the proposed regulations and their economic impact follow.
K.A.R. 112-201-1. Definitions. This regulation defines terms used throughout article 201.
K.A.R. 112-201-2. Accounting controls for the sportsbook. This regulation establishes the accounting controls required for a retail sports book.
K.A.R. 112-201-3. Reserve requirements. This regulation requires lottery gaming facility managers or their interactive sports wagering platform providers to maintain a reserve of not less than $500,000 or the amount necessary to ensure all unclaimed winnings and future liability.
K.A.R. 112-201-4. Issuance and sports wagering ticket control requirements. This regulation establishes requirements for issuing and voiding sports wagering tickets.
K.A.R. 112-201-5. General wagering requirements. This regulation establishes requirements for accepting payment for wagers; providing event information; managing sports wagering accounts; and verifying patrons’ identities and ages.
K.A.R. 112-201-6. Multiple wagers. This regulation requires lottery facility managers and interactive sports wagering platform providers to take measures to prevent and document attempts to circumvent federal anti-money laundering law and state regulations.
K.A.R. 112-201-7. Structured wagers. This regulation prohibits lottery gaming facility managers and interactive sports wagering platform providers from encouraging or instructing patrons regarding how to structure wagers to avoid the requirements of federal law.
K.A.R. 112-201-8. Recordkeeping and reporting requirements. This regulation establishes requirements regarding information that lottery gaming facility managers and interactive sports wagering platform providers must retain and how they can use personally identifiable information included in that information.
K.A.R. 112-201-9. Payment of winning wagers. This regulation establishes requirements for when lottery gaming facility managers and interactive sports wagering platforms shall pay patrons their winnings.
K.A.R. 112-201-10. Wager cancellations. This regulation requires internal controls for voiding wagers and requires approval from the executive director to void wagers.
K.A.R. 112-201-11. Reporting of suspicious activity. This regulation requires lottery gaming facility managers to utilize independent integrity suppliers to identify suspicious activity and unusual odds swings. It also requires lottery gaming facility managers or the contracted interactive sports wagering platform to report certain activity directly to Kansas Racing and Gaming Commission agents.
K.A.R. 112-201-12. Wagers, terms and conditions. This regulation establishes requirements for loyalty programs and prohibits practices that would guarantee winning wagers to loyalty program members.
K.A.R. 112-201-13. Wagering communications, establishing patron wagering for sporting events. This regulation requires online and in-person wagering to be conducted within the state of Kansas in compliance with federal and state law. It also establishes affirmations, information gathering, and recordkeeping requirements to effect and support those localization requirements.
K.A.R. 112-201-14. Lottery gaming facility manager or interactive sports wagering platform provider duties. This regulation outlines how and when a wager placed on the interactive platform can be made. It also establishes a process for a patron’s withdrawal of funds and a platform’s withholding of funds.
K.A.R. 112-201-15. House rules requirements. This regulation establishes requirements for house rules including: (1) submission of house rules to the executive director for approval; (2) coverage of anomalies; and (3) effectiveness of house rules.
K.A.R. 112-201-16. Assign regulatory staff. This regulation establishes that the executive director may require lottery gaming facility managers and interactive sports wagering platform providers to cover the costs of allowing commission staff to be permanently present on the premises of a sports book. Additionally, the regulation requires lottery gaming facility managers and interactive sports wagering platform providers to allow the commission’s staff access to all books, records, and emails.
K.A.R. 112-201-17. Records and forms. This regulation requires lottery gaming facility managers or interactive sports wagering platform providers to create and maintain the records and reports required by this article.
K.A.R. 112-201-18. Sports wagering requirements. This regulation establishes requirements for ticket writers and sports wagering kiosks.
K.A.R. 112-201-19. Sports wagering voucher requirements. This regulation establishes the requirements for: (1) issuance of sports wagering vouchers; (2) information included on vouchers; (3) recordkeeping related to vouchers; and (4) verification and notification related to voucher redemption.
K.A.R. 112-201-20. Patron disputes. This regulation requires providing notices and links to patrons for purposes of submitting complaints to the lottery gaming facility manager, interactive sports wagering platform provider, and Kansas Racing and Gaming Commission.
K.A.R. 112-201-21. Sports wagering transactions. This regulation establishes additional requirements for internal controls, floor plans, and locations for conduct of sports wagering transactions.
K.A.R. 112-201-22. Sports wagering exclusion list. This regulation establishes required internal controls to protect patrons who request an exclusion from sports wagering.
K.A.R. 112-201-23. Waiver of requirements. This regulation establishes the authority of the commission to grant regulatory waivers for this article of its regulations.
K.A.R. 112-202-1. Risk management requirements. This regulation establishes requirements for interactive sports wagering platform providers engaging in risk management. Additionally, this regulation establishes the requirement that each lottery gaming facility manager’s or interactive sports wagering platform provider’s internal controls must include internal controls to address the requirements of a developed risk management framework.
K.A.R. 112-202-2. Sports wagering registration requirement. This regulation establishes requirements for sports wagering registrants with decision-making ability that directly affects sports wagering operations.
K.A.R. 112-203-1. Communications technology. This regulation establishes that wagering communications technology shall be used only after approval by the executive director.
K.A.R. 112-203-2. Change management requirements. This regulation establishes the process interactive sports wagering platforms must follow when there is a change to the platform technology.
K.A.R. 112-203-3. Interactive sports wagering platform requirements. This regulation establishes requirements for interactive sports wagering platforms including: recordkeeping, confidentiality, encryption, audit logging, and accessibility by the commission. Additionally, the regulation requires all procedures necessary to meet these requirements be submitted in the internal controls.
K.A.R. 112-203-4. Electronic asset disposal. This regulation requires electronic assets to be sanitized before disposal. Additionally, this regulation requires any such disposal to be overseen by the commission’s staff.
K.A.R. 112-203-5. Server location and access. This regulation requires sports platform servers to be located in Kansas. Additionally, this regulation establishes narrow exceptions for transactional data duplicates stored elsewhere subject to the executive director’s approval.
K.A.R. 112-203-6. Geofence requirement. This regulation requires sports wagering platforms to utilize geofencing to prevent out-of-state wagering.
K.A.R. 112-203-7. Certification testing. This regulation requires testing by an independent testing laboratory. Additionally, this regulation sets out the standards and testing types that sports wagering platforms and equipment must undergo.
K.A.R. 112-203-8. Waiver of requirements. This regulation establishes the authority of the commission to grant regulatory waivers for this article of its regulations.
K.A.R. 112-204-1. Compliance and audit requirements. This regulation establishes requirements for revenue audit procedures and follow-ups. It also requires lottery gaming facility managers and interactive sports wagering platform providers to notify the commission of reports filed with the securities and exchange commission and other securities regulatory agencies.
K.A.R. 112-204-2. Revenue reporting. This regulation establishes extensive reporting requirements for interactive sports wagering platforms.
K.A.R. 112-204-3. Annual integrity and security audit. This regulation establishes three types of audits to which lottery gaming facility managers and interactive sports wagering platform providers shall be subject in relation to sports wagering: (1) independent accounting audits; (2) information technology security audits; and (3) special audits by the commission. The first two varieties of audits shall be conducted annually; the last will be conducted when required by the executive director.
K.A.R. 112-204-4. Pools and promotional activities. This regulation establishes the requirements for submission and approval of sports wagering promotional activities and contests. Additionally, this regulation expressly prohibits the use of “risk free” in advertising and promotional activities.
K.A.R. 112-204-5. Internal audit. This regulation requires semiannual internal audits of sports wagering activities and additional audits as required by the commission.
K.A.R. 112-204-6. External audits and other reports. This regulation requires each lottery gaming facility manager or interactive sports wagering platform provider to have its annual financial statements audited by an independent registered certified public accounting firm approved by the executive director. Additionally, it requires that the audit is prepared subject to the requirements of this regulation, and it authorizes the commission to require the auditor to be replaced if the auditor poses a risk to the integrity of gaming in Kansas.
K.A.R. 112-204-7. Waiver of requirements. This regulation establishes the authority of the commission to grant regulatory waivers for this article of its regulations.
Summary of Economic Impact
Sports wagering launched in Kansas in September 2022. Since that time seven platforms have entered into an agreement with the Kansas Lottery and have been licensed and regulated by the Kansas Racing and Gaming Commission under temporary regulations. The Department of Budget-approved Economic Impact Statement (EIS) estimates the regulations for sports wagering will cost the lottery gaming facilities and sports wagering platforms a total of $1,485,000 over the first five years of implementation. The approved EIS estimated no cost being incurred by local governments or individual Kansas residents. The majority of the costs incurred by the sports wagering platforms come from monitoring and reporting of suspicious activity, integrity and security audits, and technology certification and testing.
James Bain
General Counsel
Kansas Racing and Gaming Commission
Doc. No. 054094
