Kansas is on the verge of a major shakeup in its sports betting market.
Lawmakers last week approved a budget clause that would prohibit regulators from negotiating sportsbook license renewals through fiscal year 2026, which ends in June. That would allow lawmakers to change sports betting rules and regulations, such as tax rates and the number of licensees, before the renewal period opens.
Six sportsbooks currently are licensed through August 31, 2027.
Reworking the chain of command
Kansas allows for a maximum of 12 licensed sports betting operators under its legal framework. Only 10 are available now, but the remaining two are expected to be released in the near future.
Legal sportsbooks in Kansas include BetMGM, Caesars, DraftKings, ESPN Bet, Fanatics, and FanDuel. These sportsbooks are still able to offer betting odds and will be able to until the end of their license period.
However, the bill would place legislators in control of the renewal process, thereby sidelining the Kansas Lottery.
“[Sportsbooks will not be allowed] 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 bill reads.
Legal Sports Report noted that a failure to make any changes during the 2026 legislative session would likely see the Lottery reclaim control over the operation before the 2027 renewal deadline.
Jeremy Kudon, President of the Sports Betting Alliance, also said on X (formerly Twitter) that state lawmakers “had no idea when these contracts expired and were willing to take your favorite (online sports betting) apps away from Kansas.”
Pumping the brakes
Critics of the recent proposal have no immediate reason to panic. Gov. Laura Kelly (D) vetoed a similar provision earlier in the legislative session.
"Inserting the legislature in these negotiations would unnecessarily complicate the legal processes already in place to facilitate changes to the state sports wagering agreements,” Kelly said in a statement.
All six of Kansas’ legal sportsbooks, which were allowed to launch following the passing of the state’s sports betting agreement in 2022, were required to partner with retail casinos managed by the Kansas Lottery.
Those sportsbooks accepted $5.9 billion in wagers and made $539 million in revenue, resulting in $28.9 million in state taxes since the initial launch.
Notably, the state’s 10 percent tax rate is one of the lowest in the country and could be a source of frustration for lawmakers looking to generate more funding.
Total revenue hit $8 million in March, a 12.4 percent year-over-year increase on the $7.1 million generated in 2024. However, the total handle fell 1.7 percent from $252.9 million last March to $248.4 million this year.