As sports betting popularity increases throughout the state of Kansas, its conventional brick-and-mortar gaming facilities are really seeing declining revenue. This trend is redefining the gambling market in the state and raising concerns regarding the sustainability of in-person gaming operations in the long term.

Kansas is really riding the nation’s trend of sports betting and the numbers reveal how rapidly it’s moving. A record-breaking $301.8 million in total sports bets was wagered in the state in January 2025, a 26% increase from the same month last year. Online handles accounted for the largest share, representing $293.2 million of the total handle.

The digital advantage is clear, reflecting the demands of consumers: ease of access, live betting options and the convenience of mobile. As more and more residents prefer to place their bets on smartphones and computers, the traffic to brick-and-mortar casinos is suffering.

The trend carried over into December 2024 as well, offering a mixed bag for the Kansas gaming industry. The combined handle for sports betting increased to $261.3 million, but the revenue retained by casinos from that action was in steep decline, down 56.2% from December 2023. Most significantly, retail sportsbook revenue declined substantially, generating only $75,037, considerably lower than the $808,961 reported in the previous year.

International Gambling Trends

The market in Kansas is not the only one being disrupted by digital innovation. Worldwide, gambling is shifting and there is a significant demand for online gambling experiences. For example, Brazilian casinos online have enjoyed positive year-over-year growth as players become more interested in more flexible gambling experiences. This larger trend suggests that the observations in Kansas are only part of a broader industry transformation.

In their home markets, DraftKings and FanDuel are capitalizing on such preferences. DraftKings took in $123.4 million in bets in January alone, with FanDuel processing $96.5 million. These statistics indicate the web’s dominance and highlight the declining returns of traditional casinos.

Casinos Struggle to Keep Pace

Kansas casinos face worrying signs. December’s total gaming revenue fell 0.9% from last year to $37.1 million. At face value, that number might not read like a precipitous decline, but in the context of the exploding sports betting revenue, it is more indicative.

Two of the four major casinos in the state, Hollywood Casino and Kansas Crossing Casino, reported gains. Boot Hill Casino and Kansas Star Casino reported decreases in their performances, indicating regional disparities and the possibility that not all the properties are adjusting to current customer behavior in the same manner.

The falling casino numbers contrast with the once-reliable revenue stream for the state. In-person poker rooms, table games and slots are no longer attracting patrons in the same way they used to. Some believe that unless these establishments diversify, their struggles will only worsen.

Tax Revenues Take a Hit

The decrease in sportsbook revenue in December was also reflected in the state’s bottom line. The state of Kansas took in only $878,609 in tax revenue from sports betting in the month, a whopping 65.6% decrease from November, even as wagering volume was generally steady.

This discrepancy between handle and tax revenue shows how closely margins can become pinched by promotions, bonuses and winning bettors. Unlike the fixed odds offered by classic brick-and-mortar games, which more consistently generate profits, sports betting fluctuates wildly from month to month, depending on the results and how the sportsbooks payout.

In an era where every dollar matters, such fluctuations would become increasingly troublesome for legislators, particularly as they seek to allocate funds for programs that rely on gaming revenue.

Questions Around Responsible Gambling

The swift growth of sports betting also concerns public health professionals and advocacy agencies. So much of the activity being online, of course, means access is almost always available and that’s creating concerns over problem gambling.

Kansas does divert funds from gambling proceeds to substance abuse services. Still, several experts argue that the state is not yet doing enough to address the potential increase in compulsive behavior. The issue is compounded by the design of online venues, where speed betting, in-game betting options and aggressive advertising can lead people to play for longer than intended.

In contrast with a casino where a bettor might have to exit a gambling floor, online gambling doesn’t have natural points of stopping. Supporters are demanding more controls, including compulsory breaks, limits on deposits and broader public awareness campaigns, to enable users to gamble responsibly.

What the Future Holds for Kansas Gambling

The change in gambling habits is not merely a brief phenomenon; rather, it is a restructuring of the industry. It is a matter of how the state of Kansas will respond. Online sports betting is thriving, while brick-and-mortar casinos are losing business; therefore, gaming regulation can expect to receive new scrutiny.

Operators might create hybrid models that combine digital access with on-site amenities. Casinos might look to expand their sportsbook lounges, create rewards programs that bridge mobile and retail play or even host live sporting events to drive new traffic.

In the meantime, lawmakers may reconsider tax regimes, government funding of gambling addiction treatments and licensing requirements for operators looking to grow.

The state is at a fork in the road: innovate and adapt to the new terrain or risk seeing previously thriving casinos fall further behind.