The future of Toon Lagoon has been discussed in other threads but seemed like it was worth its own discussion. The theater area is generic so it can come or go at any time. Universal is acquiring Dreamworks, which has the rights to Jay Ward which I believe covers Dudley Do Right. Not sure if they want to keep that but at least they can do so without renewing a contract. This leaves the Kings Features area.
Someone on this forum a while back posted part of an SEC filing that stated the contract was up in 2018. II have tried to find the post without success, but hopefully one of you can repost it there. The contract did state that any Kings Features area had to have the River Barge ride. I have never heard anyone suggest it would be renewed. The license is just not making Universal much money except maybe for Popeye and Betty Boop. Universal Studios did just turn part of the old Lucy store into Betty Boop, but they could always drop the overall license and go for just a couple of IPs like Nickelodeon/Spongebob. So it seems logical that the center of Toon Lagoon would have to start being replaced in 2018.
Speculation in the past has revolved around replacing the entire area with something like Lord of the Rings. Since that did not pan out or is still hoped for in a third park the idea of keeping the area as Toon Lagoon but replacing some/all of the toons seems like the most likely possibility. It has been speculated that the area would be replaced in phases with SLOP/theater replacement being phase one. The replacement of Kings Features could be its own first phase.
If the area is to remain Toon Lagoon then that leaves open the possibility of an overlay change instead of starting over. Not sure how that would work but it might make it go faster.
My guess is that the Jay Ward area stays for a while but is a later project. Kings Features area is gone in 2018 for Dreamworks/Dreamworks Classics IPs and SLOP could start any time since it is off to the side (assuming it goes in this area at all).