Lawmakers could be sending Kansas‘ sports betting market towards an uncertain future after they overturned the governor’s veto and voted to prevent the state from extending the state’s six sportsbook licenses before 2026-27.
Budget bill SB 125, which has been debated and refined numerous times since late January, was approved in both chambers last week. The bill had already received consent from both the Senate and the House but the measure relating to betting was initially vetoed by Gov. Laura Kelly.
However, enough lawmakers voted at the second time of asking on Friday to override multiple vetoed provisions, including this one.
The provision in the 298-page text stipulates that until the end of the 2025-26 fiscal year, the Kansas Lottery shall not spend funds “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.”
Kansas’ sports betting market currently hosts six licensed operators: BetMGM, Caesars, DraftKings, ESPN Bet, Fanatics and FanDuel. A Kansas Lottery spokesperson confirmed to SBC Americas that all of those licenses are set to expire on Aug. 31, 2027.
For now, those sportsbooks can continue taking bets as usual. But the budget provision throws the future of the market beyond 2026 into doubt. The new prohibition on license extensions expires on June 30, 2026.
Sports Betting Alliance scorns Kansas politicians
Kansas’ sports betting market actually allows for up to 12 licensed sportsbooks by allowing each of the state’s retail casinos three sports betting skins. Nearly three years after Kelly signed sports betting into law in June 2022, only half of those licenses are filled.
Sports Betting Alliance President Jeremy Kudon posted on X that “none of the leading OSB operators in Kansas will go dark as a result of today’s vote.” He also chastised the Kansas legislature for what he perceived as ignorance about the market.
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.
— Jeremy Kudon (@JKudon) April 11, 2025
“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.”
The SBA consists of FanDuel, DraftKings, BetMGM and Fanatics.
Kansas betting revenue rises in March as handle falls
The latest data report from the Kansas Lottery shows that sports betting handle in the state fell by 1.7% year over year in March, to $248.4 million. But operators’ revenue came in at $8 million, up 12.4% from March 2024.
Kansas taxes sports wagering at just 10%, one of the lowest rates in the country. The state took $803,000 in tax revenue from the six sportsbooks last month.
DraftKings remains the market leader, taking $3.9 million in revenue from $102 million in handle, versus nearest rival FanDuel’s $2.3 million from $86.5 million.
