Sports betting is the driving digital force in Kansas. According to the BetKansas revenue report, Kansas sportsbooks accepted around $2.85 billion in wagers in 2025, representing a 12% increase from the previous year. The figures show the state has moved from its early peaks to a more normal, consistent trend.
A Mature Market Built on Mobile Volume
In addition to market growth figures, the data hints at certain structural trends. Some key observations from the latest stats for operators and analysts include:
- Margin volatility is significant. Even in stable markets, hold can vary substantially from month to month, driven by events and customer behavior.
- In-play betting is a key element. The focus in the report is on live betting and those in-game betting moments, and the emphasis is heavily placed on mobile activity.
- Payments are now part of the product. Faster withdrawals are thought of as a retention tool (not just a technical consideration).
Digital Lottery Expands, While iCasino Remains a Gap
Apart from sports betting, the state of Kansas is also advancing the digital lottery distribution. Budget documents reveal the Kansas Lottery will introduce online sales of its eInstants and draw games through the PlayOn platform from FY 2025.
The state of Kansas still doesn’t have a system of regulated real-money online casino gaming (particularly, for slots and poker). This gap is fueling interest in other formats that mimic casino gaming but aren’t as heavily regulated. That’s viewed as both a market pressure point and a broader policy issue.
Why the 2026 Moratorium Is the Key Plot Point
Kansas has implemented a system of sports betting through a lottery-driven, tethered system. The betting system operates under the Kansas Lottery/Expanded Lottery framework. The betting platforms work via a contractual agreement with the gaming facility managers in the state.
In 2025, a major restriction was added to the Kansas sports betting system. A moratorium was established, halting the state from negotiating or renewing its sports betting contracts (in relation to state funds). Two elements raise this pause beyond the procedural:
- First, tax and revenue routing are inherently political. Kansas receives 10% of sports wagering revenue, both mobile and retail. There have already been public discussions about whether or not this figure should be altered.
- Second, the rulemaking process may be formalized. A new bill, SB 502 (February 2026), would allow the Kansas Racing and Gaming Commission to enact administrative rules and regulations on sports wagers.
Final Notes for Industry Readers
Kansas is currently handling mature mobile volume, and the policy pause until July 2026 is putting the industry in a slow-down mode. The playbook for the next two quarters is all about retention – a tight live betting product experience, easier payouts, and stronger locally based partnerships.
There are two key dates to note for investors and strategists – July 1st, 2026 (as it is the date when the renewal freeze is eased), and August 2027 (a key date for public coverage of contract expiry timing).
