Kansas’ legislative session, lawmakers approved a crucial amendment to state budget SB 125. This amendment restricts expenditures on negotiating or entering contracts for sports wagering management with any lottery gaming facility managers during the 2025 and 2026 fiscal years.

While the immediate effects are minimal, the long-term implications for Kansas’ sports betting landscape are profound.

Jeremy Kudon, a lobbyist for the Sports Betting Alliance (SBA), reassured stakeholders via X, noting that most current contracts with the lottery stretch into 2027. The SBA represents major players like FanDuel, DraftKings, BetMGM, and Fanatics, who, along with Caesars Sportsbook and ESPN Bet, operate under licenses valid until August 27, 2027.

However, unless significant changes occur by the expiration date of June 30, 2026, as stipulated by the amendment, these operators risk losing their foothold in Kansas. The amendment’s passage has sparked criticism from industry representatives like the iDevelopment and Economic Association (iDEA), which stands with SBA in denouncing the legislative shift.

John Pappas, iDEA’s state advocacy director, criticized the decision, describing it as “reckless budget maneuvering” that threatens the integrity of the state’s regulated sports betting market. Pappas warned that the move could drive consumers towards illegal, unregulated platforms that lack tax contributions and offer minimal consumer protection.