Lawmakers nationwide have been busy introducing and talking about sports betting, online casino and sweepstakes legislation this session.
While a slew of online gambling bills have been introduced, few have made significant progress.
Perhaps most surprising is the Hawaii sports betting legislation that is on the cusp of passage. Meanwhile, online casino legalization, sweepstakes prohibition bills and tax rate increases have seen little movement.
Hawaii sports betting dark horse
The Aloha State is often overlooked as a possible candidate for legalization, and entering this legislative session was no different. Hawaii and Utah are the only two states with no forms of legal gambling.
In prior sessions, sports betting legislation has only moved through a House committee. This year, Rep. Daniel Holt’s HB 1308 cruised through both chambers before hitting its only real snag.
During House deliberations, lawmakers stripped tax rate and license fee figures to spur further discussion and potentially raise them. The Senate reinserted the initial rates before passage.
Once back in the House, the legislators declined to concur with the amendment, which now awaits a conference committee. Gov. Josh Green has signaled he would likely sign the legislation into law.
Can Nebraska make it all the way?
In 2020, Nebraskans voted to have casino-style gaming in the Cornhusker State, and lawmakers are now looking to expand into online Nebraska sportsbooks. That started with a special session last year, with support from Gov. Jim Pillen.
LB 20CA has passed one of three final hurdles in a vote by the full Nebraska Legislature. The final two votes need to clear 30 votes to send the amendment to the November ballot.
However, there is another hurdle in its way. At least one lawmaker has pledged to filibuster the measure, which would bump up the required vote to 33 senators.
More failures in familiar states
Each year, it seems the same states are on the verge of passing sports betting legislation. This year was more of the same, with the following states looking at some form of sports betting legalization:
- Is Alabama lottery and sports betting set back 20 years?
- Georgia sports betting sees no movement in 2025
- Minnesota’s agreement leads to early heartbreak
- Mississippi online expansion waits another year
- South Carolina falls flat
- Texas momentum stalls, slides backward
Big tax talk in US sports betting
Multiple governors came into this year looking to raise taxes on sports betting, including Maryland Gov. Wes Moore, New Jersey Gov. Phil Murphy and Ohio Gov. Mike DeWine. Ohio lawmakers declined to move along with their executive, while Moore and Murphy have seen their proposals challenged.
Other efforts led to little movement, including in Indiana, Louisiana and Michigan.
This month, North Carolina lawmakers introduced a budget that would double the state’s sportsbook tax rate to 36% from 18%. The Senate passed it, sending it on to the House for its budget negotiations.
Online casino remains status quo
Multiple online casino bills were filed across the US. Many were sidelined nearly as quickly as they were introduced, including the following:
- Indiana lawmakers put online casino on ice after discussion
- Maryland sees familiar argument against online casino
- New Hampshire sponsor tables bill despite some momentum
- Virginia wants a closer look at the industry
- Wyoming says hold on a second
More recently, Maine and Arkansas lawmakers punted their online casino efforts.
Along with growing headwinds against the online gambling industry, a group of casino owners formed to oppose online casino expansion: the National Association Against iGaming.
Sweepstakes legislation takes off, stalls out
Multiple states nationwide introduced bills to prohibit or regulate the social sweepstakes industry. The proposed legislation came as many state regulators took action against the operators.
The Mississippi Senate became the first chamber to pass such a measure. However, it fell apart after the House inserted online sports betting language that had already failed in the upper chamber.
The Maryland Senate also passed similar legislation.
Other states that had legislation introduced, including some ongoing discussions:
- Connecticut
- Florida
- Louisiana
- Nevada
- New Jersey
- New York
