Kansas Sportsbook Could Go Offline When Licenses Expire

Kansas gave the green light to its regulated sports betting market in 2022. At the moment, there are six available sportsbooks in the Sunflower State.

However, domestic bettors may face a shake-up in the coming years after state lawmakers voted to block the renewal of existing sportsbook licenses. 

While sports betting remains legal in the state, a new provision passed as part of a broader budget bill could force Kansas’ six currently active sportsbooks offline once their licenses expire.

Extensions and Renegotiations, Forbidden

The decision means that regulators are now prohibited from extending or renegotiating existing licenses, which are set to expire on August 31, 2027. 

This affects major operators, including BetMGM, Caesars, DraftKings, Fanatics, FanDuel, and ESPN BET.

Although the measure will not reverse the legalization of sports betting, it does cast uncertainty over the future of the state’s industry.

What was once seen as a long-term, stable market could now face disruption unless lawmakers revise the framework before licenses run out.

Governor Laura Kelly had previously vetoed the provision that blocks license extensions, arguing it was harmful to Kansas’ growing sports betting economy. 

However, her veto was overturned this week by both chambers of the Republican-led legislature. 

While the House narrowly failed to override the veto initially, Friday’s second vote was successful.

Uncertain Times for the Industry

Some legislators have reportedly been considering bringing some major changes to the regulatory model. 

According to some, the list could include replacing the state’s current competitive structure with a more restricted or even exclusive model, similar to what Washington, D.C. briefly attempted before abandoning it. 

Such proposals have drawn criticism from the sports betting industry, which favors open competition.

For now, Kansas bettors can continue to wager as usual, but the long-term outlook is murky. 

The new restriction on license renewals expires on June 30, 2026, giving lawmakers a window during next year’s session to reevaluate the law and potentially reinstate the option to renew sportsbook licenses.

However, bettors may not be subject to any direct changes, especially if the state manages to maintain a competitive betting market. 

On the other hand, operators may be looking at fresh sets of rules, increased taxes, or limitations on their operations. 

If the legislature extends the renewal ban beyond 2026, Kansas could see its sportsbooks shut down altogether.

Currently, Kansas law allows up to 12 sportsbooks, all operating in partnership with one of four state-regulated casinos overseen by the Kansas Lottery. Meanwhile, neighboring Missouri is gearing up to launch mobile sportsbooks later this year, adding more pressure for Kansas to clarify its long-term plans.