Kansas Weighs Sports Betting Future Ahead of Missouri Launch
As Missouri prepares to launch online sports betting in December, Kansas lawmakers are debating whether their state’s approach to wagering is sustainable in the long run.
Members of the Kansas Legislature’s Special Committee on Federal and State Affairs spent nearly six hours on Monday reviewing the system that has been in place since 2022.
Kansas sports betting allows mobile sportsbooks at a 10% tax rate, one of the lowest in the nation. According to the Kansas lottery, that rate brought in $17.4 million in the 2025 fiscal year, but of the 12 licenses available under state law, only half are being used.
The five-year contracts held with Kansas sports betting apps are set to expire in September 2027, and lawmakers cannot renew or extend them until mid-2026, which is leaving time for questions about whether the current model makes sense.
Supporters of the existing framework argued that the system is delivering steady growth. Representatives for sportsbook operators said Kansas has collected $36 million in new revenue since legalization, with tax receipts rising by more than 70% in 2025 compared to the previous year. They warned that increasing the tax rate could push gamblers to illegal or out-of-state platforms.
Not all lawmakers agreed. Rep. Francis Awerkamp pointed to state research ranking Kansas 29th out of 33 states in tax revenue per dollar wagered. He described the results as a failure and suggested Kansas might consider a monopoly model like Oregon’s, which funnels all bets through a single sportsbook, though opponents pointed to Washington, DC’s failed experiment with the same system.
Another point of contention is how Kansas spends its betting revenue.
After a required $750,000 transfer to a crime fund, 80% of what remains goes to a fund designed to attract professional sports teams to the state. That fund has received about $26 million in three years, which was aimed at convincing the Kansas City Chiefs or Royals to build new stadiums across the border. But Missouri countered earlier this year by offering its own incentives, including bonds and tax credits.
Missouri sports betting launch
The looming launch of Missouri’s sports betting market adds urgency to Kansas’s debate. Missouri’s system will allow up to 19 retail and 14 online licenses, with major operators like DraftKings, Caesars, FanDuel, BetMGM, and ESPN BET already in position.
Data suggests that many Missourians already cross the state line to place bets in Kansas. GeoComply tracked millions of attempted logins from Missouri residents last fall, with thousands of accounts linked to activity in Kansas.
Once Missouri sports betting goes live, that customer base could vanish overnight.
For now, Kansas lawmakers must decide whether to stick with a low-tax, competitive system or consider changes before contracts are renewed.
