Kansas Vote Casts Doubt on Future of Legal Sports Betting

Kansas lawmakers have voted through a measure that casts serious doubt over the future of legal sports betting in the state. In a last-minute decision before the legislative session concluded, a key budget amendment was added to SB 125, effectively blocking state agencies from using funds to extend or renegotiate existing sportsbook management contracts.

Licence Renewals Suspended Until 2026

The amendment specifically halts expenditure for the fiscal years 2025 and 2026 on any agreements with sportsbook operators tied to Kansas’ lottery gaming facilities. While this does not immediately disrupt the operations of existing sportsbooks, it introduces a deadline — August 31, 2027 — after which renewals may not be legally permitted unless new legislation is ed.

As it stands, six sportsbooks — FanDuel, DraftKings, BetMGM, Caesars Sportsbook, ESPN Bet, and Fanatics — are currently licensed to operate in Kansas. The Sports Betting Alliance (SBA), which represents four of these brands, noted that most existing contracts extend through 2027. SBA lobbyist Jeremy Kudon posted on X that these arrangements “will run well into 2027.”

The sudden nature of the amendment has sparked criticism from stakeholders. John Pappas, state advocacy director for the iDevelopment and Economic Association (iDEA), warned of the unintended consequences.

“This is reckless budget maneuvering that threatens to pull the rug out from under a successful, regulated sports betting market,” he said. “It serves no meaningful fiscal purpose, but it will take dollars and consumer protections away from Kansans – pushing them toward illegal, unregulated gambling sites that pay no taxes and offer no safeguards.”

Though the measure does not outlaw sports betting itself, its long-term implications are significant. If the prohibition is not reversed or replaced by mid-2026, Kansas regulators will lose the authority to extend current licences, potentially leading to a full market shutdown once current deals expire.

Debate Over Potential Shift to Single-Operator Model

Sources close to the legislative process indicate there may still be a path to resolving the situation before the 2026 expiration date. However, there is growing speculation that some lawmakers are eyeing a more restricted framework for future operations — possibly even a single-operator system.

This model, previously adopted in Washington DC, proved unsuccessful, leading to a market overhaul in 2023 to allow multiple operators. Industry experts have repeatedly warned that monopoly frameworks can reduce consumer choice and stifle tax revenue growth.

Brendan Bussmann of B Global Advisors criticized the Kansas amendment, saying, “Apparently in the red state of Kansas, they want to figure out how communism doesn’t work again.” He added, “You see what you get with stability in driving revenue. The same should be held today on any expansion of gaming that was done three years ago.”

Kansas sports betting figures from March 2024 showed $248.4 million in handle and $8 million in revenue. While the handle saw a slight year-on-year dip of 1.7%, revenue rose by over 12%. The state collected $803,000 in taxes that month, contributing to a fiscal year total of $13.1 million.

Across the country, however, states are increasingly revisiting their sports betting laws. Illinois introduced a sliding tax scale of up to 40%, while Ohio raised its rate to 20% just a year after launch. Maryland followed suit, and proposals in Massachusetts and Vermont suggest more regulatory and taxation changes could be on the horizon.

A federal proposal, the SAFE Bet Act, also looms, which would place sports betting oversight in the hands of national regulators.

Future of Kansas Sports Betting Hinges on 2026 Session

The current restriction on licence renewals ends on June 30, 2026. Without new laws in place by then, the Kansas Racing and Gaming Commission could theoretically resume renewals. However, lawmakers could also opt to extend the prohibition, continuing the uncertainty.

The 2025 session has now concluded with no reform measures introduced. That leaves the next opportunity for legislative change in January 2026, when the new session begins.

The original 2022 legislation had created a relatively open and competitive marketplace with up to 12 licences, all tied to the state’s four land-based casinos. Kansas imposed a low 10% tax rate on revenue, making it attractive for operators. But the latest move suggests dissatisfaction among lawmakers regarding revenue generation under the current model.

Industry observers, including Citizens JMP analyst Jordan Bender, have noted that policy changes like this one can undermine investor confidence. Bender emphasized that restricting competition in hopes of increasing tax income often drives consumers to unlicensed platforms.

For now, Kansans can continue placing bets through the six active sportsbooks. But with future renewals now blocked and no clear path forward, the long-term fate of the state’s legal betting market remains in jeopardy.

Source:

‘’Kansas sports betting market shaken up by budget provision approval’’, igamingbusiness.com, April 11, 2025.