Kansas sportsbooks could face shutdown after lawmakers block license renewals

The future of legal sports betting in Kansas is now uncertain after state lawmakers voted Friday to block the renewal of sportsbook licenses — a move that could force the state’s six active platforms offline in coming years.

The controversial decision stems from a provision tucked into a broader budget bill passed earlier this year, which prohibits state regulators from negotiating extensions on existing sports betting licenses.

As a result, sportsbooks will be unable to continue operating once their current licenses expire, though sports betting remains legal in the state for now.

The six sportsbooks currently active in Kansas — BetMGM, Caesars, DraftKings, Fanatics, FanDuel, and ESPN BET — hold licenses valid through August 31, 2027. Until then, they will continue to accept wagers.

Governor Laura Kelly, a Democrat, previously vetoed the provision targeting license extensions. However, Republican-led majorities in both the Kansas House and Senate voted this week to override her veto as part of a broader package of budget measures. The final vote in the House took place Friday, just one day after an initial attempt fell short.

Some lawmakers are eyeing a broader overhaul of Kansas’ 2022 sports betting law, unnamed sources told Covers. That could include a shift to a more restrictive licensing model, potentially even a single-operator system similar to the now-abandoned Washington, D.C. approach. Such a move would likely face significant pushback from industry stakeholders.

With the 2025 legislative session now concluded, any changes to Kansas’ sports betting structure will have to wait until lawmakers reconvene in January 2026. The current prohibition on license extensions is set to expire June 30, 2026, at which point regulators could regain authority to renew licenses — unless lawmakers vote to extend the ban.

No new regulatory proposals have been introduced yet, but the vote has created fresh uncertainty around the future of Kansas’ competitive sports betting landscape. While everyday bettors may not notice an immediate difference, sportsbooks could face higher taxes or tighter regulations under a restructured framework.

Under the existing model, up to 12 sportsbooks are permitted to operate in Kansas, each required to partner with one of the state’s four land-based casinos, which are managed by the Kansas Lottery.

Friday’s vote comes just months ahead of Missouri’s anticipated launch of mobile sports betting, currently expected in October or November 2025, potentially drawing attention and dollars across state lines if Kansas’ market contracts.