Doug Bonjour is a veteran sportswriter with more than a decade of experience, including in the realm of sports betting. He’s written for the New York Times, Associated Press, CBS Sports and Hearst Connecticut Media...
Read Full BioAs sports betting continues to grow throughout the United States, the market in Kansas faces an uncertain future.
A budget amendment passed last week by Kansas’ House of Representatives prohibits the state from extending licenses for its six sportsbooks, which are set to expire in August 2027. According to the provision, the Kansas Lottery is not to “negotiate or enter into any contract or extension or renewal of an existing contract for the management of sports wagering with any lottery gaming facility manager.”
The state’s six active operators are BetMGM, Caesars, DraftKings, Fanatics, FanDuel, and ESPN Bet.
While those sportsbooks can continue operating as usual, the provision casts doubts on their long-term stability.
Kansas Sportsbooks Face Challenges
Gov. Laura Kelly had vetoed the provision blocking license extensions, citing concerns about its financial impact on sports betting. However, operators risk losing their standing in the Sunflower State if significant changes are not made before the expiration date.
It is possible lawmakers will seek a resolution at some point during the 2026 session. However, various reports have also suggested that Kansas could instead introduce a single-source model similar to what Washington, D.C., adopted ever so briefly.
The current model in Kansas allows up to 12 licensed sportsbooks, each operating in partnership with one of the four lottery-run retail casinos.
Sports Betting Alliance (SBA) president Jeremy Kudon took to social media to try to quell some of the uncertainty, posting on X (formerly Twitter) that “none of the leading OSB operators in Kansas will go dark as a result of today’s vote.”
Kudon continued: “But I wouldn’t let the Kansas legislature off so easy. They had no idea when these contracts expired and were willing to take your favorite OSB apps away from Kansans. We’re not going to let that happen.”
Could Kansas Sports Betting Tax Climb?
Lobbyists have suggested that a less radical change may include raising the state’s sports betting tax. The current rate of 10% is one of the lowest in the United States.
Such a move would not be unprecedented. Ohio doubled its rate from 10% to 20%, while Illinois implemented a tier-based scale ranging from 20% to 40%. Meanwhile, a state lawmaker has proposed hiking Massachusetts’ rate to 51%, which, if implemented, would be the joint highest in the country, along with New York and Rhode Island.
Sports betting, which has been legal in Kansas since 2022, generated a record $216 million in gross revenue last year. That represented a 27% increase from 2023 ($170 million) and equated to approximately $21.6 million in tax revenue for the state.
Mobile betting platforms accounted for nearly 85% of the total revenue, with DraftKings and FanDuel performing ahead of the pack.
Since Kansas’ launch, the number of states with legal online sports betting has grown to 38 (plus Washington, D.C.). Missouri is set to launch this fall, while a few others are in active legislation.
