Sebelius requests creation of position to oversee gaming expansion
Governor asks KRGC to appoint Robert Krehbiel to new post

With the goal being to ensure proper implementation of the gaming expansion approved by the Legislature this year, Governor Kathleen Sebelius has requested that the new post of Chief Gaming Officer be created.

The request came in a letter to the Kansas Racing and Gaming Commission.  In that letter, Sebelius also requested that Robert Krehbiel, who currently serves on the Kansas Corporation Commission, be appointed to the new post.

“The goal is to ensure the process proceeds smoothly and that proper oversight is maintained at every step of the way.  Having one official who’s responsible for overseeing the implementation and enforcement of the Expanded Lottery Act just makes sense, as does appointing someone like Bob who has the knowledge, experience and integrity needed for this important job,” said Sebelius.

A copy of the letter appears below:

Dear Members of the Kansas Racing and Gaming Commission:

The enactment of 2007 Senate Bill 66, the Expanded Lottery Act, provides an expansion of responsible gaming opportunities for the people of Kansas.  I look forward to working with the Kansas Racing and Gaming Commission as this expansion of gaming is implemented, spurring economic development that will help keep money in Kansas that would otherwise go to out-of-state casinos.

From the outset of the debate over expanded gaming, one of my key guiding principles has been to insist upon continued strong oversight and controls.  Now that the Expanded Lottery Act has been signed into law, the Kansas Racing and Gaming Commission will play a significantly enhanced and even more critical role when it comes to ensuring strong oversight and control.  I believe the Commission could more effectively oversee the new gaming that is allowed under the Expanded Lottery Act if it adds a chief official dedicated to this goal. 

The statute authorizes the commission to employ such officers and employees as it deems necessary to implement, administer and enforce the provisions of the Kansas expanded lottery act.  After careful review and discussion, it is my recommendation that a new position be created to work closely with the Governor’s office, the Legislature, the stakeholders, the Kansas public, the existing Commissions, the new Board and the Kansas Lottery to implement the statute successfully.

Accordingly, I am writing today to request that the Commission create a new position of Chief Gaming Officer to oversee and coordinate the implementation, administration and enforcement of the Expanded Lottery Act.  This proposed position of Chief Gaming Officer would:

• Oversee lottery gaming facilities and racing gaming facilities as provided for in the Expanded Lottery Act, in coordination with the Executive Director of the Kansas Racing and Gaming Commission.
• Coordinate all forms of gaming authorized in Kansas, including pari-mutuel wagering, casinos and slot machines at racetracks, and tribal gaming. 
• Serve as liaison between the Kansas Lottery and KRGC. 
• Ensure the State manages and regulates all of the forms of gaming permitted in the State uniformly and efficiently. 
• Oversee drafting and implementation of regulations related to casinos and slot machines at the racetracks, in coordination with the Executive Director of the Kansas Racing and Gaming Commission.  
• Oversee and coordinate with the Executive Director of the KRGC.  (The Executive Director of the KRGC will continue to be responsible for the day-to-day regulatory activities relating to pari-mutuel gaming, casinos and slots at the race tracks. The Executive Director will continue to report to the KRGC, but will also report to the Chief Gaming Officer)
• Oversee and coordinate with the Executive Director of the State Gaming Agency.  (The Executive Director of the State Gaming Agency will continue to be responsible for the day-to-day regulatory activities relating to tribal casinos and will continue to report to the KRGC, but will also report to the Chief Gaming Officer)
• Serve as liaison with the legislature on issues regarding gaming.
• The Chief Gaming Officer will report to the KRGC.
• The Chief Gaming Officer will also report to the Office of the Governor regarding all forms of gaming authorized in the State.        

I would further request that the Commission appoint Robert Krehbiel, currently a member of the Kansas Corporation Commission, to the post of Chief Gaming Officer.  Mr. Krehbiel has the experience of working on gaming and related issues during his tenure as a member of the Kansas House of Representatives, including two years as Vice Chairman of the House Federal and State Affairs Committee; the ability to reach out to stakeholders on all sides of complicated issues to develop consensus; and shares my views about the importance of strong oversight and regulation over expanded gaming in Kansas.  Of course, this proposed appointment would be conditioned on a successful updated background check that the KRGC would require.

Thank you very much for your consideration of my requests. 

Sincerely, Kathleen Sebelius, Governor of the State of Kansas

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