On May 12, Kansas legalized sports betting and almost immediately Kansas Star Casino filed a lawsuit alleging breach of contract.
The new Kansas law allows sports betting via mobile devices, computers, at each of the four state casinos or up to 50 other locations chosen by each casino.
The Kansas Star Casino has a contract with the Kansas Lottery that runs through December 2026 and argues that the state is in breach of its contract, which states that the lottery will not allow competition from similar facilities in the Wichita area. The casino operated by Boyd Gaming is located 15 miles south of Wichita.
By law, new gaming devices will be allowed at Wichita Greyhound Park. More specifically, it's about a thousand horse racing machines that replay snippets of past races, with the results determining how much a bettor wins. The lawsuit argues that the machines are no different from traditional slot machines.
Boyd Gaming highlights in a press release that the company has fulfilled its obligations, "successfully operated Kansas Star and invested hundreds of millions of dollars in Kansas Star based on the State's contractual promise."
In this regard, the company seeks to force the state to pay a $25 million penalty specified in the contract, plus interest, even though the law says Greyhound Park will reimburse Kansas if it gets its new gaming devices.
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