State legislatures across the United States experienced an increasingly common scenario this week: on the one hand, cautious proposals to expand the game and increase revenue; on the other, an accelerated advancement of measures to crack down on unlicensed productssuch as sweepstakes casinos and prediction markets.
The political message is clear. Rather than rushing to approve iGaming or mobile betting, many states are more comfortable in postpone expansion votes while toughen supervision against the parallel market.
In practice, 2026 begins to look more like a year of “regulatory cleaning” than of major releases.
Expansion projects advance, but with delays and setbacks
Illinois returns to discuss online casino
Representative Edgar González Jr. reintroduced the online casino legalization project in Illinois, resuming practically the same text presented last year. The proposal foresees a regulated iGaming market, 25% tax, multiple licenses per operator and standard responsible gaming rules.
Illinois is seen as one of the largest untapped online casino markets in the US. The fact that the project returned almost unchanged indicates that the previous problem was more political than technical. Still, growing budgetary pressure and offshore competition could make the issue gain more momentum throughout 2026.
Virginia advances in iGaming, but only later
In Virginia, HB 161 has advanced through House committees, but an amendment requiring approval in two legislative sessions pushes any actual implementation to 2027 at the earliest.
The move looks like a political compromise: lawmakers show progress but buy time to discuss impacts on lotteries, jobs and responsible gambling. There is interest, but no rush.
In the Senate, a parallel project also advanced after including additional safeguards to protect the player.
Mississippi approves mobile betting for the third time in a row
The Mississippi House again passed an online sports betting bill, HB 1581, marking the third consecutive year in which the proposal passes through the House.
The text’s difference lies in the destination of the revenue: most of the tax revenue would be used to reinforce the state’s public pension system, while US$6 million annually would be reserved to compensate for possible losses from physical casinos.
The state tries to frame mobile betting not just as an expansion of gambling, but as solution to a structural public finance problem.
Alabama tries to move forward via constitutional amendment
In Alabama, Senator Merika Coleman-Evans introduced a constitutional amendment that would allow voters to decide on the creation of lotteries, commercial casinos and online sports betting.
As any expansion of the game requires constitutional change in the state, the path necessarily passes through a popular referendum. A similar package almost advanced in 2024, but stalled in the Senate by just one vote. With an election year ahead, the fate of the proposal remains uncertain.
Missouri targets VLTs and gray areas
Missouri has moved forward with a project that legalizes video lottery terminals (VLTs) and, at the same time, toughens oversight of “skill” machines and gray market devices.
Instead of an outright ban, the state relies on licensing and transparency requirements to stifle the parallel market — a strategy that could serve as a model for other states.
Sweepstakes casinos enter the center of repression
Mississippi criminalizes sweepstakes platforms
The Mississippi Senate unanimously passed a bill that expands criminal statutes to cover online and computerized gaming, explicitly targeting sweepstakes casinos.
As a result, what previously existed in a gray area is now treated as clear illegality, facilitating the actions of regulators, police and financial intermediaries.
Still, there is a political impasse: while the Chamber is betting on the expansion of mobile betting, the Senate prioritizes repression. A similar divide in the past has paralyzed both sides.
Iowa Strengthens Enforcement Power
In Iowa, bills approved by subcommittees do not attempt to define what is or is not a sweepstakes casino. Instead, expand the powers of the state regulator to take action against any form of unlicensed gambling, using cease and desist orders and legal action.
The approach avoids conceptual debates and reinforces the application of the law — and has direct support from the regulatory body.
Oklahoma cracks down on dual currency models
Oklahoma kicked off the legislative session with a bill that redefines virtual currencies used on sweepstakes platforms as “representatives of value,” making dual currency models illegal.
The state joins a growing list of jurisdictions that are now explicitly treating such systems as illegal gambling.
Maryland still undecided whether to ban or regulate
In Maryland, recent hearings showed that lawmakers have not yet decided whether to ban or regulate sweepstakes casinos. Projects aimed at interactive multi-currency games were debated, but without a vote.
Last year, the Senate approved a ban that ended up dying in the Chamber due to lack of time. New hearings must take place before any definitive decision is made.
Prediction markets enter states’ radar
In addition to sweepstakes casinos, prediction markets — platforms that offer contracts based on sporting, political or cultural events — have become a direct target of legislators.
Hawaii wants to classify contracts as gambling
In Hawaii, a bill approved in committee would explicitly classify prediction markets as gambling. The state, which does not have any form of regulated gambling, claims that the measure closes a loophole used by federal platforms.
Connecticut prefers to restrict rather than prohibit
Connecticut took a different approach. The governor proposed limiting access and advertising in these markets to those over 21, using consumer protection rules rather than an outright ban.
Illinois advances on two fronts
In addition to resuming the debate on iGaming, Illinois also presented a bill that prohibits contracts for sporting events, establishes a minimum age of 21 and imposes additional responsible gaming rules.
The strategy is clear: expand the licensed market while eliminating unregulated alternatives.
The big picture
The week reinforced trends that should mark the entire legislative year of 2026:
The game’s expansion remains slow and cautious
The crackdown on sweepstakes casinos is accelerating
Prediction markets face increasing scrutiny
States appear more comfortable cracking down first and regulating later
For traders and investors, the message is straightforward: Growth in licensed markets may be gradual, but tolerance for the gray market is rapidly decreasing. This dynamic, more than any single project, should shape the future of regulated gambling in the United States.
Fonte: Gaming365 – Brasil
