Budget Amendments Shake Up Kansas Sports Betting

Kansas sports betting is facing a clouded future after lawmakers in the state’s House of Representatives voted through a last-minute change to the state budget. The move, which caught many in the industry off guard, may threaten the ability of sportsbooks to renew their operating contracts beyond 2026.

The amendment was attached to Senate Bill 125 on the final day of the state’s legislative session. It prevents the Kansas Lottery — the agency in charge of overseeing sports betting — from using state or special funds in 2025 and 2026 to negotiate, renew, or extend contracts with sportsbook operators.

This doesn’t immediately affect operations, but it does raise serious questions about what happens after current licenses expire in August 2027. Six major sportsbooks — FanDuel, DraftKings, BetMGM, Fanatics, Caesars Sportsbook, and ESPN Bet — currently operate in Kansas through agreements with lottery gaming facility managers.

Industry Reacts with Concern

Jeremy Kudon, a lobbyist for the Sports Betting Alliance (SBA), said in a post on X that “most contracts with the lottery will run well into 2027.” While that offers some short-term stability, the amendment’s expiration in June 2026 leaves little time to resolve the uncertainty before contract renewals become an issue.

John Pappas, state advocacy director for iDevelopment and Economic Association (iDEA), criticized the amendment sharply. “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 will take dollars and consumer protections away from Kansans.”

What's Next for Kansas?

The amendment doesn’t outlaw sports betting, but it may limit how the state handles the market in the future. Some sources believe this could be a step toward switching to a single-operator model — where only one company is allowed to offer sports betting in the state.

This model has a mixed track record. Washington, D.C. initially followed this approach, and its betting market significantly underperformed until more operators were allowed in last year. Since then, revenue and user engagement have improved.

Critics argue that having more competition creates better odds for consumers and generates more tax revenue for states. Brendan Bussmann, managing partner at B Global Advisors, was blunt in his reaction: “Apparently in the red state of Kansas, they want to figure out how communism doesn’t work again.”

Kansas is not the only state reevaluating its sports betting strategy. Across the U.S., more states are either raising taxes on sportsbooks or tightening regulations.

• Illinois now uses a sliding scale tax rate of 20% to 40%, up from the original 15%.
• Ohio doubled its tax rate from 10% to 20% in 2023.
• Maryland raised its rate from 15% to 20% this year.
• Massachusetts is considering a steep 51% rate, along with restrictions on advertising and types of bets.
• Vermont introduced a bill to eliminate both sports betting and the state lottery entirely.

At the federal level, lawmakers are reviewing the SAFE Bet Act, which would hand more oversight to the federal government — a move that would reshape how sports betting is managed across the country.

 

Conclusions

In March 2025, Kansas bettors wagered $248.4 million. That’s slightly lower than the same month last year (down 1.7%), but the state’s sports betting revenue rose 12.4% to $8 million. Kansas collected $803,000 in taxes for the month, pushing the fiscal year total to $13.1 million.

This steady income highlights the risk of disrupting a growing and profitable industry. If contracts can’t be renewed after 2026, that revenue could disappear — and with it, the protections that come with legal, regulated betting.