Selection of a lottery gaming facility manager involves two commissions and one board:  The Kansas Lottery Commission, the Lottery Gaming Facility Review Board (LGFRB), and the Kansas Racing and Gaming Commission.  After the Lottery Commission has vetted all applications and proposed contracts for a lottery gaming facility in a zone, the approved proposed contracts are submitted to the LGFRB for review.

The LGFRB is comprised of seven members:  three members appointed by the governor; two members appointed by the senate president; and two members appointed by the speaker of the house.  Political party representation is limited to a maximum of four from the same party.  The KRGC coordinates and/or administers the budget, purchasing, management functions and office and meeting space for the LGFRB, but the board is otherwise independent of the KRGC and the Lottery. Current members of the LGFRB are:

Governor (3 members)

Jack Bower (Chair), Atchison County    Republican

Lisa Pleasure, Johnson County              Unaffiliated

Georgianna Mullin, Johnson County       Republican

 

President of the Senate (2 members)                

Jeff Oakes, Greenwood County           Unaffiliated

Don Alexander, Neosho County           Republican

 

Speaker of the House (2 members)                  

Kevin Cook, Shawnee County             Democrat

Gail Radke, Johnson County               Republican

 

Once a management contract is entered into for the southeast gaming zone, the LGFRB will disband. The LGFRB will be reconstituted if, prior to expiration of any current management contract, the Kansas Lottery is unable to negotiate a substantially similar contract with the facility manager, requiring a new facility manager to be selected.

 

 

The Kansas Lottery Gaming Facility Review Board is a seven member board appointed to determine the “best possible contract” 1 and select lottery gaming facility managers in each of the four lottery gaming zones in the state of Kansas.

The members of the Review Board are appointed: Three members by the governor, two by the president of the senate, and two by the speaker of the house of representatives.2 Each member of the Review Board serves until they either resign their position or are replaced by their appointing authority.3

The Review Board is made up of individuals with business expertise. Persons who own property, live, or do significant business in a gaming zone are not eligible to sit on the Review Board.4

For staffing purposes, the Review Board is attached to the Kansas Racing and Gaming Commission (KRGC).5 This means that the Review Board uses the office, legal, accounting and technical staff of the KRGC in its day to day operations.

The expenses of the Review Board, including travel, staff time, facility rental, and consulting work are paid by the applicants.6 KRGC staff estimates a budget at the beginning of the process and bills each applicant a proportional share. No taxpayer funds or State of Kansas General Fund money is used to fund the Review Board process.

The Facility Manager Selection Process

The selection process for gaming facility managers is a step by step process involving both state and local authorities.

  1. At the state level, applicants must submit an application to manage a lottery gaming facility in a specific zone to the Kansas Lottery in response to the Kansas Lottery’s Request for Proposals.7 More information about the Kansas Lottery’s role in this process can be found at www.kslottery.com.
  2. Local government must endorse each proposal before it can proceed to the Lottery Gaming Facility Review Board. This endorsement process is designed and run entirely by local officials. The Kansas Lottery, Lottery Gaming Facility Review Board and Kansas Racing and Gaming Commission have no authority or involvement in the local endorsement process. However, for any application to proceed, it must bear local endorsement.8
  3. The Kansas Lottery must attempt to negotiate management contracts with all eligible applicants. Lottery officials have 90 days (with a possible 60 day extension) to negotiate and approve management contracts.9 The Lottery Commission must approve the Lottery facility management contract and certify that the contract meets minimum statutory requirements. These requirements include a minimum amount of experience in class III gaming and a minimum investment in infrastructure, among other requirements.10
  4. Once the Kansas Lottery Commission has approved the management contract, the contracts proceed to the Kansas Lottery Gaming Facility Review Board. The Review Board must determine the “best possible contract”11. The Board has 60 days (with a possible 60 day extension) to make its determination.12 In determining the best possible contract, the Board must consider “which contract best maximizes revenue, encourages tourism and otherwise serves the interests of the people of Kansas.”13 A simple majority vote is required to determine which contract is the best possible contract in the opinion of the Review Board.
  5. The Review Board selects the best possible contract and forwards it to the Kansas Racing and Gaming Commission for approval.  Prior to approval, the KRGC must conduct a background investigation of the prospective lottery gaming facility manager as well as its directors, officers, and other persons having an ownership interest in the prospective manager.  The KRGC has 10 days (with a possible 60 day extension) to approve the background of the lottery facility manager.14  Because ten days in not enough time to complete the background investigations, which can take months to complete, the KRGC begins the background investigation process on all applicants as soon as they apply.  Once the Board selects a candidate, the KRGC stops investigating the other candidates and concentrates on completing the background of the selected candidate.

 1 K.S.A. 74-8736 (a)
2 K.S.A. 74-8735 (a)
3 Attorney General Opinion No. 2009-11
4 K.S.A. 74-8735 (c)
5 K.S.A. 74-8735 (h)
6 K.S.A. 74-8735 (h)
7 K.S.A. 74-8733 (b)
8 K.S.A. 74-8733 (h)(10)
9 K.S.A. 74-8736 (a)
10 K.S.A. 74-8733 (g)
11 K.S.A. 74-8735 (d)(1)
12 K.S.A. 74-8736 (d)(1)
13 K.S.A. 74-8736 (b)
14 K.S.A. 74-8736 (e)

The Kansas Lottery Gaming Facility Review Board is a seven member board appointed to determine the "best possible contract" and to select lottery gaming facility managers in each of the four lottery gaming zones in the state of Kansas. The first Review Board, appointed in 2007, selected lottery gaming facility managers in three zones (northeast, southwest and south central). That board held its last meeting on December 15, 2010. A new board has recently been appointed to select a lottery gaming facility manager for the southeast zone (Cherokee and Crawford counties.) Click here for a list of new Review Board members.

The Review Board is made up of individuals with significant business expertise, particularly in business development and location of new businesses to maximize revenue.

The Kansas Lottery Gaming Facility Review Board is appointed as follows:

Three members are appointed by the governor.

Two members are appointed by the president of the senate.

Two members are appointed by the speaker of the house of representatives.

No more than four members of the board may be members of the same political party.

No person is eligible to be a board member if the person:

    • is a resident of, or owns property in, a gaming zone;
    • has an interest in any business domiciled in a gaming zone;
    • has an interest in any business conducting a significant portion of its business in a gaming zone;
    • has, either directly or indirectly, a financial interest in a prospective lottery gaming facility manager or any ancillary lottery gaming facility operations proposed by a prospective lottery gaming facility manager;
    • during the preceding two years has had, either directly or indirectly, a financial interest in a prospective lottery gaming facility manager or any ancillary lottery gaming facility operations proposed by a prospective lottery gaming facility manager;
    • during the preceding two years has been employed by a prospective lottery gaming facility manager or any ancillary lottery gaming facility operations proposed by a prospective lottery gaming facility manager; or
    • during the preceding two years has been a consultant to a prospective lottery gaming facility manager or any ancillary lottery gaming facility operations proposed by a prospective lottery gaming facility manager.

Click these links for more information on Review Board members, the Review Board process, or to see past casino proposals: 

Board Members

Review Board Process

Casino Proposals

LGFRB Meetings

DateLocation (City)Major TopicsAgenda
08-05-2008 Teleconference Regarding the Southeast Zone and South Central Zone Agenda
08-13-2018 Kansas City Regarding the Northeast Zone and South Central Zone Agenda
08-21-2008 Topeka Final action on the Southeast and Southcentral Zone Agenda
09-02-2008 Topeka Regarding the Southwest Zone and Northeast Zone Agenda

Next KRGC Meeting

 
Date: Friday, May 17th
Time: 10:00am
Location
Eisenhower State Office Buliding
700 SW Harrison St. Topeka, KS
4th floor Suite 450

 
 
 
 
 
 
                                        
      

Click Here for Sports Wagering Regulations

Click Here for Current Agenda

Click Here for Past Meetings & Agendas

Click Here for the Casino's Past Revenue Reports

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