Kansas Lawmakers Block License Renewals After 2027

Kansas’ sports betting industry just hit a major roadblock that could shutter operations in less than three years. A legislative provision prevents the renewal of sportsbook licenses beyond August 2027, despite operators’ strong market presence. With top brands like FanDuel and DraftKings at risk, industry leaders are calling for urgent legal reform to ensure continuity. Stakeholders must rally ahead of the 2026 session to reverse or replace the prohibition — or risk a total market collapse.

Kansas Sports Betting on the Brink: Lawmakers Threaten Industry Shutdown After 2027

Key Points:

1. Kansas will not renew sportsbook licenses beyond 2027 unless new legislation is passed.
2. The move stems from dissatisfaction with tax revenue under the current 10% model.
3. Industry fears a shift to limited-operator models that could fuel offshore betting and reduce state income.

The Kansas sports betting market, once seen as a model for competitive and responsible gambling expansion, now faces a potential shutdown by 2027. A controversial provision slipped into the state budget has barred regulators from renewing sportsbook licenses past August 31, 2027 — unless new legislation is enacted.

For now, all six operational sportsbooks in the state — BetMGM, Caesars, DraftKings, ESPN Bet, Fanatics, and FanDuel — can continue offering legal wagers. However, this new law creates a looming deadline that threatens to upend Kansas’ current regulatory framework.

The measure was part of a broader budget package passed after state legislators overrode Governor Laura Kelly’s earlier veto. The Kansas House failed to override the veto in an initial vote but succeeded in a follow-up round on April 12, 2025.

While sports betting remains legal, the inability to renew licenses has introduced severe uncertainty into a market that launched just three years ago. Industry analysts are now warning that Kansas could go from a competitive sportsbook hub to a restricted or even dormant market if the law isn’t amended in time.

Why the Shift?

The decision appears to be driven by a faction of lawmakers frustrated with the limited revenue generated under Kansas’ low 10% tax rate on sportsbook revenue. When legalized in 2022, the structure was designed to attract top-tier operators and promote healthy competition. However, some legislators believe the state could extract more value through tighter control.

This has led to discussions about shifting toward a single-operator or limited-operator model, similar to structures seen in other jurisdictions like Washington, D.C., which failed to meet revenue expectations.

Such models typically result in reduced consumer choice and lower per-capita revenue. For context, states with multiple licensed sportsbooks averaged $92 per adult in sports betting revenue in 2024. By contrast, those with only one operator earned just $45 per adult, according to recent industry data.

Industry Concerns Mount

Citizens JMP analyst Jordan Bender commented that this kind of regulatory flip-flopping introduces volatility into the gaming industry. Investors and operators alike struggle to plan long-term when legislative landscapes shift unpredictably.

Bender also cautioned that limiting access or increasing tax pressure could drive consumers toward offshore, unregulated betting platforms, ultimately undermining the very revenue the state seeks to increase.

For now, Kansas regulators — namely the Kansas Racing and Gaming Commission — are legally prohibited from extending sportsbook licenses past 2027. Unless lawmakers take corrective action during the 2026 legislative session, sportsbooks will face forced closure once their contracts expire.

What Comes Next?

Importantly, the prohibition on renewals expires June 30, 2026, giving lawmakers a clear window to address the issue. Should they fail to act, sportsbooks may begin preparing for market exit or legal challenges.

At present, no new sports betting reform bills are on the table, and the 2025 legislative session has already closed, eliminating any near-term hope for reversal.

Meanwhile, the six operators continue business as usual, offering services to thousands of Kansas bettors. However, the countdown to 2027 has already begun, and the industry is on edge.

Kansas has built a thriving sports betting ecosystem, but it now stands at a dangerous crossroads. Lawmakers’ decision to block license renewals has thrown the industry into uncertainty. Without new legislation by 2026, the state could lose its sportsbooks — and the revenue, jobs, and integrity that come with them. As stakeholders brace for a crucial legislative showdown, the future of legal sports betting in Kansas remains precarious.