I truly hadn't thought about the Kansas ML. I'm seeing +260. I think $2000 might be too much equity to give away in the pool if Kentucky blows them out. Maybe $500 on Kansas ML and $500 on Kansas +the points? That would yield $2500 if Kentucky blows them out, $1800 if Kansas wins outright and $3,500 if Kansas covers the 6, but loses?
Compare that to $1000 on Kansas +7, which pays $2,500 if Kentucky blows them out, $1,000 if Kansas wins outright and $4,500 if Kentucky wins by 1-6.
I still think Kansas +7 for $1000 might be better, as the only way the first scenario pays out more is if Kansas wins outright, which I think is unlikely. However, at least you are guaranteed $1800 in the first scenario.
I think I like taking advantage of the possible middle better, but am by no means sure that this is the appropriate way to go, which is why I'm asking.