Budget vote ruffles feathers
The majority of the United States’ market-leading sports betting operators, including FanDuel and DraftKings, face being turfed out of Kansas following a budget amendment that could shutter the sportsbooks by 2027.
state legislators approved a budget provision
The unexpected curveball came after state legislators approved a budget provision that stops the six operational sports betting firms from negotiating or extending their existing licenses “during the 2025 or 2026 fiscal years.”
Sports Betting Alliance President Jeremy Kudon took to X to calm nerves, stating the licenses under threat run until 2027:
Kudon, however, did pour scorn on the Kansas House of Representatives decision.
Trouble with the lawmakers
The SBA chief said Kansas lawmakers should essentially be taken to task for their actions potentially affecting the two market leaders and the other sportsbooks in the state, namely BetMGM, Fanatics Sportsbook, Caesars Sportsbook, and ESPN Bet.
“They had no idea when these contracts expired and were willing to take your favorite OSB apps away from Kansans.”
Kudon declared the SBA was “not going to let that happen,” while later posting in the comment: “How is it legal for states to push one book only?”
While the long-term future of Kansas’ sports betting market is not as secure as it was before the legislative session on April 11, Kansas bettors will see no immediate change to the vertical.
Legal twists
Currently, Kansas’ sports betting laws allow for a maximum of 12 sportsbooks, all of which must partner with one of the state’s four land-based casinos.
The casinos are, however, managed by the state government-run Kansas Lottery. To add a further legal twist, the new budget provision prevents the state lottery from engaging in license renewals.
According to reports, the amendment states the lottery will not be allowed: “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.”
This new budget provision expires on June 30, 2026, at which stage sportsbooks would normally expect regulators to extend their licenses. Lawmakers could give the big six operators a scare and instead vote to extend the provision when it expires.
