Sweepstakes bans advanced, prediction markets drew new legislative scrutiny, and key sports betting measures moved closer to law in a busy week for U.S. gambling policy.
Multiple states advanced gambling-related legislation this week, with sweepstakes bans, prediction market restrictions, and sports betting frameworks all advancing at different stages of the legislative process.
Here are the gambling bills that mattered this week.
Sweepstakes Casinos Face Expanding Crackdown
The scrutiny of sweepstakes casinos continued this week with several states advancing bills to restrict or eliminate the platforms.
- Maine (LD 2007): After passing the bill last week, the Maine Legislature finalized it and sent it to the governor. If Gov. Janet Mills signs the measure, Maine will become the second state in 2026, after Indiana, to formally ban sweepstakes casinos.
- Louisiana (HB 53): The House passed a bill that targets sweepstakes operators under racketeering statutes. The approach is a notable escalation beyond traditional regulatory bans, effectively framing the activity as part of a broader criminal enterprise. Lawmakers are also expected to debate a separate explicit ban bill next week.
- Tennessee (HB 1885): The House bill prohibiting “online sweepstakes games” advanced from a full committee this week after earlier clearing a subcommittee. It now moves to a second committee hearing next week. A Senate companion measure passed last month and now awaits further House action.
- Iowa (SF 2289): After passing the Senate in February, the bill received a House hearing and advanced from a subcommittee this week. The enforcement measure could receive a full committee hearing as early as next week.
Why it Matters:
Lawmakers across multiple states are increasingly converging on the view that sweepstakes casinos mirror traditional gambling. While their approaches to addressing the sector range from explicit bans to enforcement measures, operators face a growing risk of enforcement and market contraction.
Prediction Markets Draw Scrutiny
While courts debate the issue, lawmakers are increasingly introducing bills targeting prediction markets.
- Kentucky (HB 904, omnibus gambling bill): Lawmakers passed a broader gambling measure that initially included language prohibiting sportsbooks from partnering with national prediction market operators. The bill was revised to narrow the restriction to partnerships involving prediction market operators within Kentucky.
- Iowa (SF 2470): The Senate passed a bill that would regulate “event-driven contracts”. It would tax operators 20% of their adjusted revenue. The measure represents a divergent approach from other states by seeking to regulate prediction markets rather than restricting or banning them.
- Tennessee (HB 2079): The bill advanced from a full committee after previously passing through a subcommittee. The measure would explicitly prohibit individuals from participating in prediction markets, making participation a felony-level offense.
Why it Matters:
Prediction markets have grown rapidly in popularity over the past year, but their classification remains unresolved. Multiple states are now engaged in litigation with operators over whether the platforms fall under federal derivatives or state gambling oversight.
At the same time, lawmakers are increasingly seeking to address the sector through legislative measures, targeting not only platforms but also licensees and individual participants.
Sports Betting Expansion Continues
While many states are focused on restrictions and unregulated sectors, others have advanced sports betting measures.
- Wisconsin (AB 601): The online sports betting bill under tribal control was formally delivered to Gov. Tony Evers, who has until April 9 to sign or veto. The governor has expressed concerns about whether all tribes support the framework, leaving the outcome uncertain.
- Washington (SB 6137): Gov. Bob Ferguson signed legislation allowing prop betting on college sports, while continuing to prohibit wagers tied to individual athlete performance.
Why it Matters:
If Evers signs the bill, Wisconsin will become the latest state to legalize mobile sports betting.
Meanwhile, Washington’s move reflects a notable division from a national trend of states moving to block prop bets, particularly those involving college sports.
Enforcement Measures Also Discussed
A separate set of developments this week focused on enforcement measures.
- Louisiana (SB 325): The Senate passed a bill that would ban bettors who harass athletes or other participants in sporting events.
- Missouri (HB 2989): A bill to legalize video lottery terminals (VLTs) received a hearing but encountered resistance in the Senate. Supporters argue that the measure, which narrowly passed in the House, would replace unregulated skill-game machines with legal VLTs.
Why it Matters:
Louisiana moved one step closer to joining states such as Ohio, West Virginia, and Wyoming, which have implemented a ban on bettors who harass athletes. Others, like New York and New Jersey, are also considering similar measures.
In Missouri, unregulated gambling machines have become a contentious issue, with the courts ruling against their legality. Still, Senate leadership has expressed concerns that regulated VLTs could increase gambling-related harm.
The Big Picture
This week’s legislative activity reinforces clear trends:
- Sweepstakes casinos remain a primary target across multiple states.
- Prediction markets are emerging as a new legislative battleground.
- Expansion continues alongside a growing focus on integrity and consumer protection.
The post Sweepstakes Bans Advance, Prediction Markets Targeted: Bills That Mattered This Week appeared first on Gambling Insider.
