As Missourians are getting ready for legalized sports betting to come to their state on Dec. 1, both Kansas City professional sports teams are in the midst of trying to secure new stadium deals.
According to the Associated Press, the Kanasas City Chiefs have requested an extension to today's June 30th deadline for a stadium financing package from the state, with many who have indicated that the Chiefs potential move across the state line from Missouri is an actual possibility.
The Kansas Legislative Coordinating Council (KLCC) is scheduled to meet Monday, July 7 to consider extending the deadline for a stadium deal with either team.
Chiefs & Royals Have Long History Playing in Jackson County
Both the Chiefs and the Royals have played for more than five decades at the Truman Sports Complex on the east side of Kansas City, where Arrowhead Stadium (Chiefs) and Kauffman Stadium (Royals) share parking facilities. However, leases with Jackson County are due to expire in January 2031, and the two teams have been trying to plan for their future.
In 2024, Jackson County voters defeated a sales tax extension that would have helped to finance an $800 million renovation of Arrowhead and a $2 billion ballpark district for the Royals in downtown Kansas City.
Earlier this month, Missouri Gov. Mike Kehoe (R) called the state's General Assembly lawmakers into a special session to approve a stadium financing deal that included disaster relief for the St. Louis area, where a series of devastating tornadoes caused widespread damage. The legislation authorizes bonds covering up to 50% of the cost of new or renovated stadiums in Missouri, plus up to $50 million of tax credits for each stadium and unspecified aid from local governments.
The prevailing belief was that the package would be enough to keep the Chiefs at Arrowhead Stadium, where they have floated plans for a $1.15 billion renovation, and perhaps hold onto the Royals, who are still interested in building downtown.
In the meantime, the Kansas Legislature passed a law that would allow STAR bonds to be used to help cover stadium expenses for the Royals and the Chiefs. But experts warn that the Kansas deal may not generate enough tax revenue to cover the 70% of stadium costs that the state is promising — particularly if both teams moved to Kansas.
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The Royals have said that they will not renew their lease at Kauffman Stadium once it’s up in 2031, and they’re putting pressure on local officials to get a new stadium constructed before that time. That means they will have six years to select a site, negotiate a deal, and then start/complete construction, however, if the stadium is not built in time, the team has the option to renew its lease for five years and stay until 2036.
It is estimated that $15 million of annual state tax revenue from a potential Royals stadium could support an estimated $300-400 million in funding for construction. That means more than half of the estimated $1 billion to $2 billion stadium remains unfunded.
Could Sports Betting Be a Help to Both Clubs to Get These Stadium Deals Across the Line?
Legalized Missouri sports betting kicks off on Monday, Dec. 1.
It is estimated that sports betting will generate nearly $29 million a year, with $5 million going into a fund to prevent gambling addictions and the remaining $24 million going to public schools and higher education. In the first year, sports betting is projected to claim $3.4 billion in handle, a 9.8% hold, $47.5 million in taxable revenue, and $4.7 million in taxes with sportsbooks generating up to $560 million annually.
There are 14 sports betting licenses that are expected to be available in the state by the end of this year.
Both stadiums could have on-property sportsbooks at each of the stadiums, as well as in their pending new stadiums, whenever that has been decided on.
