- Kansas lawmakers today voted on a budget provision that will disallow sports betting operator license extensions through FY 2026
- The provision disallows the state to negotiate extensions with any current online sports betting operators
- This could signal major changes forthcoming for Kansas sports betting
The Kansas sports betting market could be in line for a big change in several years, as state lawmakers approved a provision in the state budget that disallows the state from negotiating or extending the licenses of any current sports betting operators through 2026.
The approved amendment came on the final day of the state’s legislative session. The provision reads as such:
“During the fiscal year ending June 30, 2026, notwithstanding the provisions of K.S.A. 74-8734, and amendments thereto, and K.S.A. 2024 Supp. 74-8781, and amendments thereto, or any other statute, no expenditures shall be made by the above agency from moneys appropriated from the state general fund or from any special revenue fund or funds for fiscal year 2026, as authorized by this or other appropriation act of the 2025 regular session of the legislature, 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.”
Big Changes Coming to Market?
Each of the six sports betting operators in Kansas – DraftKings, FanDuel, BetMGM, Fanatics Sportsbook, Caesars Sportsbook, and ESPN BET – have their licenses set to expire on Aug. 31, 2027.
So, what can potentially happen with this new provision? It will disallow the state to negotiate contract extensions with the sportsbooks through June 30, 2026. If a new deal isn’t reached by the time of the license expiration, the sportsbooks will no longer be able to take bets and will likely go dark.
No new sports betting plans or bills have been introduced by the legislature this session.
The approved provision will not immediately impact sports betting services in the state, but it likely portends an ominous direction state regulators may be looking to take the Kansas sports betting market. Regulators may look to modify the state’s sports betting tax rate, perhaps limit the amount of operators in the state, or even move to a market with just one or two licensed operators.
Jeremy Kudon, president of the Sports Betting Alliance, took to his social media account on X today to calm fears that Kansas sports betting was going dark after today’s vote. Kudon clarified that the contracts run into 2027 and no immediate changes are coming.
He did note the legislature did not seem to have any idea of when the licenses were set to expire.
“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 Kansas. We’re not going to let that happen.”
Kansas sports betting has been a hot topic of discussion in recent months, with lawmakers and stakeholders considering potential changes to the current regulations. As it stands, sports betting is legal in Kansas, but only at a limited number of locations such as casinos and racetracks. However, there are talks of expanding the market to include online and mobile betting options.
One of the main reasons for this potential expansion is the success seen in neighboring states that have already legalized online sports betting. States like Colorado and Iowa have seen a significant increase in revenue since allowing online betting, which has sparked interest in Kansas to follow suit.
Another factor driving the push for changes to Kansas sports betting is the desire to generate additional revenue for the state. With the economic impact of the COVID-19 pandemic still being felt, many are looking for ways to boost the economy and create new sources of income. Legalizing online sports betting could provide a much-needed financial boost for Kansas.
Additionally, allowing online sports betting could also help to curb illegal gambling activities. By providing a safe and regulated platform for individuals to place bets, it can help to eliminate the need for underground betting operations that often lead to criminal activity.
However, there are still some concerns and challenges that need to be addressed before any changes can be implemented. One of the main concerns is ensuring responsible gambling practices are in place to protect consumers from potential harm. There is also the issue of determining how revenue from sports betting would be allocated and distributed within the state.
Overall, the potential changes coming to Kansas sports betting could have a significant impact on the state’s economy and provide new opportunities for both consumers and businesses. It will be interesting to see how these discussions unfold in the coming months and what the future holds for sports betting in Kansas.