Kansas Sports Betting Teeters on the Edge
Kansas sports betting’s staring down a foggy road, even though bets are still flowing. A budget amendment to SB 125, passed in April, blocks the Kansas Lottery from spending on new or extended sportsbook contracts in fiscal years 2025 and 2026.
A Market in Limbo
Gov. Laura Kelly tried to veto the measure, but lawmakers overrode her, leaving the state’s six mobile betting apps: FanDuel, DraftKings, BetMGM, Caesars, ESPN BET, and Fanatics, in a bind. “
Current licenses, tied to lottery gaming facilities, are set to expire around August 2027. Without renewals, legal betting could vanish, making Kansas the first state to shutter a live sports wagering market.
March 2025 saw a solid $248.4 million in bets and $8 million in revenue, but the clock’s ticking. “Access to Kansas’ legal sportsbooks are now in jeopardy” Ryan Butler warned on X, and with no fix in sight, operators and bettors are left to check the horizon for what’s next.
How We Got Here
Sports betting kicked off in Kansas on September 1, 2022, after Gov. Kelly signed Senate Bill 84, riding the wave of the NFL season. Kelly herself placed the first bet, $15 on the Chiefs to win Super Bowl LVII, and the market took off, hitting $1.6 billion in bets and $58.7 million in revenue in year one.
By March 2025, annual tax revenue topped $13 million, fueling state coffers. The setup, letting four casinos partner with up to three online platforms each, sparked competition that kept bettors hooked.
But 2025 threw a wrench. The SB 125 amendment, now law, bans lottery funds for betting deals until June 30, 2026, when the rule expires.
Jeremy Kudon of the Sports Betting Alliance, repping FanDuel, DraftKings, and BetMGM, says these apps are safe until 2027 thanks to existing contracts. “Most contracts with the lottery run well into 2027,” he told 96.5 The Fan, but smaller operators’ fates are less clear. If licenses lapse, Kansas could lose its $200-$250 million monthly betting pulse.
Industry Jitters and What-Ifs
The industry’s rattled. John Pappas of iDEA slammed the move as “reckless,” warning on X it could push bettors to black markets and bleed tax dollars, $5.87 million in gross revenue last year alone.
Some fear lawmakers might nudge Kansas toward a single-operator model, like Washington D.C.’s, which Pappas says tanks competition and cash. D.C.’s $4 million yearly haul versus Kansas’ $13 million backs him up.
Others see wiggle room. Butler floated that lawmakers could reverse course by mid-2026, before the budget rule lifts, or craft a new framework. Worst case? Operators pull out post-2027, leaving bettors high and dry.
No state’s killed legal betting since the 2018 PASPA repeal. With Missouri’s market firing up nearby, Kansas risks losing players across the border.
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