Kansas sports betting could see some changes in the future after a strange move by the state legislature.
Last week, lawmakers approved a small budget provision that prevents regulators from negotiating Kansas sports betting license renewals through the fiscal year ending in June 2026. Six sportsbooks have licenses with terms that run until August 2027.
Under the new provision, lawmakers inserted themselves into the license renewal process. This move could indicate changes desired by lawmakers, including a higher tax rate or a different industry structure.
Kansas sports betting not affected
The sportsbooks can offer bets through their license terms. The bill would take license negotiations from the Kansas Lottery and put them in control of the legislature until next summer.
“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.”
Lawmakers will likely look to address the regulatory framework during the 2026 legislative session. That could include a tax rate hike or a move toward a single-operator monopoly seen in some markets.
If no changes are made and the negotiating prohibition is not renewed, the lottery could likely resume negotiations before the 2027 expirations.
Gov. Kelly against the push
Earlier this session, Gov. Laura Kelly vetoed a similar provision. Lawmakers included it in a bigger package of provisions to veto override, failing on Thursday before successfully overriding on Friday.
“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.
Kansas lawmakers passed sports betting legislation in 2022. It allowed up to 12 sportsbooks with a 10% tax rate on sports betting revenue.
Is low tax revenue the issue?
Sportsbooks had to partner with one of the state’s four casinos, which are managed by the Kansas Lottery. The six sportsbooks active in Kansas:
- BetMGM
- Caesars
- DraftKings
- ESPN Bet
- Fanatics
- FanDuel
Since launching in September 2022, Kansas sportsbooks have taken $5.9 billion in wagers, generating $539 million in revenue. Kansas has hauled in $28.9 million in taxes.
