By Austin Fisher
KU Statehouse Wire Service
TOPEKA — House lawmakers heard testimony Tuesday on a bill that would check whether gamblers who hit the jackpot at state-run gambling facilities have overdue child support payments before they walk away with their winnings.
House Bill 2269 would expand the state’s debt setoff program that currently withholds outstanding child support just from scratch ticket winnings of $600 or more. The bill adds state-owned or managed casinos, racetracks, and other licensed establishments as places where winnings can withheld in an effort to increase collections.
The Department of Administration maintains a list of people with debt to state agencies, foreign state agencies, municipalities or the federal treasury, like those who owe back taxes or child support. Scratch ticket retailers can check players’ names against the list to see whether they have debts.
Under the new law if an indebted gambler wins at least $1,200 from a slot machine or bingo, $1,500 from keno, or $5,000 from a poker tournament, the casino would subtract the debt and credit it to the department’s setoff clearing fund.
Rep. Pete DeGraaf (R-Mulvane) told the House Children and Seniors committee that the bill will help children from broken homes.
“We owe it to Kansas children to collect whatever we can before the winnings are lost in further attempts to win more, or squandered somewhere else,” DeGraaf said. “This bill supports the principle of paying debts before gambling away the funds needed to pay for past responsibilities.”
Melissa Johnson, deputy director of Child Support Services, supported the bill and estimated that families would receive an additional $157,300 in child support each year. That figure is based on a similar program in Colorado that deducted $1,430 per collection on average in 2009.
The Department of Administration estimates updating computer systems to implement the bill would cost less than $10,000. It is looking into how much of the debt setoff currently comes from lottery collections.
Representatives for the Kansas Department for Children and Families couldn’t say for sure how many non-custodial parents — those who aren’t paying their child support — are gamblers.
Richard Klemp, director of governmental affairs for the Kansas Star Casino and Boyd Gaming Corporation, also supported the bill.
“We’re not necessarily doing a happy dance if it becomes law but we’re already doing a number of procedures when a jackpot is hit,” Klemp said.
Casinos take a photo of winner, check their identification and whether they’re in a voluntary exclusion program for problem gamblers, deduct state income tax and, if the winner wants, federal income tax.
“This would not slow the process down. And we do this (deduct state debt) in some other states so this is not a brand new concept. In fact it’s pretty seamless,” Klemp said.
The bill excludes Native American tribal gaming facilities that operate under sovereign law separate from Kansas.
Austin Fisher is a University of Kansas senior from Lawrence majoring in journalism.