Kansas sportsbooks took in $190 million in total wagers February, down 12 % from the previous year.

But while bettors were more active than ever, the state’s tax revenue dropped sharply, revealing a widening disconnect between handle growth and government returns.

Operators reported $8.2 million in gross gaming revenue (GGR) and just $821,562 in state taxes, reflecting a 2.9% hold, Kansas’s lowest monthly win rate on record.

Despite its impressive betting activity, Kansas continues to generate less state revenue than smaller markets, a growing concern for lawmakers reviewing the state’s gaming framework.

While the 2025 handle reached an all-time high for last year, GGR has fallen by more than 55% year-over-year, and tax receipts are down by half. The culprit? A combination of low operator hold and Kansas’s nation-leading low tax rate of 6.5% on sports betting revenue.