Butler National Corp. keeps drawing aces for its sports gaming hand: The Olathe company announced an agreement to provide a national player’s online sportsbook in Kansas.
News of Butler’s (OTC: BUKS) deal with Golden Nugget Online Gaming LLC, comes just days after the Olathe company reported signing a sports wagering management contract with the Kansas Lottery.
Golden Nugget is a subsidiary of DraftKings Inc. (Nasdaq: DKNG). Its mobile sportsbook would offer eligible Kansans “a robust, interactive suite of sports betting solutions,” according to a Butler release.
Both deals grew out of legislation Kansas Gov. Laura Kelly signed in May that will allow sports betting, which lets the four state-affiliated casinos use online gambling platforms and create sportsbooks. In addition, the legislation allows venues such as restaurants and nonprofit fraternal or veterans organizations to offer sports betting.
Butler National can tap the new law as the operator of the state’s Boot Hill Casino & Resort in Dodge City. The company also owns the casino’s land and building, and in October bought out a minority interest in the Butler unit that runs the property. The other state-owned casinos are Hollywood Casino at Kansas Speedway in Kansas City, Kansas, plus sites in Pittsburg and Mulvane. Hollywood Casino hopes to have a Barstool Sportsbook facility in place in time for the start of the National Football League regular season Sept. 8 and the four speedway races Sept. 9-11.
The four state casinos expect to generate $9 million to $45 million in sports gaming revenue, with Kansas collecting a 10% tax. Of that tax revenue, 80% will be directed to a fund to attract professional sports teams. Estimates see the fund growing at an annual clip of about $5 million.
In addition to professional management services for gaming, which Butler National has been providing more than 25 years, the company manufactures, sells and services support systems for classic commercial and military aircraft. It also operates several Federal Aviation Administration repair stations. Through its BCS Design Inc. subsidiary, the company provides architectural, engineering and management support services.
Butler National reported annual revenue of $73.47 million for its fiscal 2022, which ended April 30. That figure rose from $61.48 million the prior year. Net income also climbed, from $2.46 million in fiscal 2021 to $12.2 million in fiscal 2022.
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