This week marked significant progress in U.S. gambling legislation, with various states pushing forward bills related to sweepstakes, prediction markets, and sports betting.
Several states are taking steps to restrict or eliminate sweepstakes casinos, reflecting growing concerns about their similarity to traditional gambling.
Maine (LD 2007): The Maine Legislature has finalized a bill to ban sweepstakes casinos, which is now awaiting the governor's approval. If signed by Gov. Janet Mills, Maine will join Indiana in officially banning these establishments by 2026.
Louisiana (HB 53): A new bill has passed the House that targets sweepstakes operators under racketeering laws, marking a significant shift in how these activities are regulated. Lawmakers are also set to discuss a separate bill for an explicit ban next week.
Tennessee (HB 1885): A bill prohibiting online sweepstakes games has advanced from committee and is moving towards further hearings. A related Senate bill has already passed and is awaiting action in the House.
Iowa (SF 2289): Following its passage in the Senate, a bill aimed at enforcing regulations on sweepstakes casinos has moved forward in the House, with a full committee hearing potentially scheduled for next week.
As lawmakers across the nation increasingly view sweepstakes casinos as akin to traditional gambling, the risk of enforcement and market contraction for operators is rising.
In addition to sweepstakes, prediction markets are also under legislative scrutiny. Courts are currently debating their classification, while states are introducing new bills targeting these platforms.
Kentucky (HB 904): An omnibus gambling bill has been revised to limit restrictions on partnerships between sportsbooks and prediction market operators to those within Kentucky.
Iowa (SF 2470): A bill regulating event-driven contracts has passed the Senate, proposing a 20% tax on operators' adjusted revenue, aiming to regulate rather than ban prediction markets.
Tennessee (HB 2079): This measure would make participation in prediction markets a felony, having advanced from committee.
As prediction markets gain popularity, states are increasingly engaging in litigation regarding their classification, while also introducing legislative measures to regulate the sector.
Meanwhile, some states are advancing sports betting legislation.
Wisconsin (AB 601): An online sports betting bill under tribal control has been sent to Gov. Tony Evers, who must decide by April 9 whether to sign or veto it. Concerns about tribal support for the framework have left its future uncertain.
Washington (SB 6137): The governor has signed a new law allowing prop betting on college sports, while maintaining a ban on wage-related betting.