Online education has become an increasingly popular means of delivering educational programs in health and kinesiology. It has helped departments meet increasing enrollment demands and provided additional resources that support students and faculty. A number of challenges, however, are associated with developing these types of programs. The purpose of this paper is to discuss some of the issues that Texas A&M University has experienced in developing extensive online courses and distance education programs. The paper discusses methods and models employed to develop online and distance programs in health and kinesiology and provides a case study of some of the opportunities and challenges that the Sport Management Division experienced in developing an online master's program. Issues related to efficacy, management, funding, and student success are discussed. Health and kinesiology administrators should consider these issues as they look to develop or grow online course offerings in the discipline.