The Kansas Lottery, responsible for overseeing gambling in the state, reported that The Sunflower State had recorded $301.8 million in sports betting handle in January. The record-breaking month was up 26% year-on-year and 15.5% from December, which was admittedly a slow month for the state. As well as being the first time state revenue has breached the $300 million mark, it was also a record for the monthly handle, although revenue, at $16.2 million for the month, was still below the $25.5 million record recorded in November 2023.

Sports betting regulation has been considered a financial success in Kansas, since its launch in May 2022. Despite that, however, there has been surprisingly little movement to similarly regulate online casinos.

Currently, players from within the state have to play at offshore casinos like Lucky Block casino, which offers varied game selections, various payment methods, and generous bonuses, but, because they are not licensed by the state, they do not generate revenue for Kansas. Currently, only 7 states have regulated online casinos, and Kansas does not look likely to follow them in the immediate future.

January’s sports betting performance was boosted by the NFL and mirrored performance in other states. New York set a record-breaking month, with a handle of $2.5 billion. North Carolina more than doubled its handle from December.

Much of the increase can be attributed to the NFL playoffs that occurred during the month. The Chiefs made their third successive appearance at the Super Bowl. Although they ultimately lost 40-22 to the Philadelphia Eagles, who prevented the Chiefs’ three-peat, that had no impact on betting levels in the Sunflower State.

Across 2024, Kansas saw a sports betting handle of nearly $2.5 billion, generating gross revenue of $125 million and yielding $12.4 million in tax for the state. Proponents of regulated online casinos highlight the increased tax it would bring in, as well as the convenience it offers to players. They also argue that it would help prevent illegal and unscrupulous sites from being able to operate.

One of the reasons opponents are against the idea is that it could cannibalize existing physical casinos. Kansas currently has six tribal casinos and four state-affiliated casinos. The four state casinos generate around $30 million a month in revenue, at current rates, with Hollywood Casino proving the biggest money spinner.

Casinos have been performing reasonably well with February’s $32.6 million revenue being a 5% year-on-year increase. However, this may change soon if smoking bans in casinos are introduced – such bans are being introduced in Kansas and Missouri, and they may lead to lower footfall in retail casinos.

Lawmakers may worry that online casino gaming may be waiting for neighboring states to make their moves. iGaming is not currently legal in Nebraska, Oklahoma, or Colorado.

Missouri’s iGaming market is also unregulated, although it has recently launched retail and mobile sports betting. During November’s ballot, the question of legalizing sports betting passed by a very narrow margin of 0.3% and the application period will run from May 15. According to the constitutional amendment to legalize sportsbooks, they must launch by December 2025.

With Missouri the only other neighboring state to have even legalized sports betting, it seems likely that Kansas will have to lead the charge for iGaming, if it is to happen in the region.

Currently, online casinos are not regulated. This means casinos cannot be licensed in the state, and players must turn to offshore casinos for their gambling enjoyment. Offshore casinos are regulated in jurisdictions like Macau, Malta, and the UK. They do not pay taxes to the state of Kansas, which means the state is potentially missing out on a steady income stream.

Rhode Island was the last state to introduce iGaming, in 2023. Since then, there has been surprisingly little movement when it comes to regulating online casinos. Maryland, Virginia, Louisiana, and Florida are some of the states that might be next in line. There is also discussion in New York, although this appears somewhat unlikely as the city of New York is also gearing up to grant three new physical casino licenses and regulators are worried it might minimize revenue for the new venues.