State-by-State Legislation 2026 Outlook: iGaming, Sports Betting & Prediction Markets

By Bill Speros

Feb 9th, 2026 3:33 PM EST

The future of sports betting, iGaming and prediction markets legislation weighs in the balance across the country as several states consider new laws. Multiple states continue the push to legalize iGaming. Others are looking to add or expand sports betting. The scope of sports betting is under scrutiny, as well as sports-related trades on prediction markets.

Here's a rundown of where sports betting, iGaming and prediction markets legislation stands in various state houses across the nation. As our data shows, some of the legislative proposals are counterintuitive in terms of what other bills seek in the same body.

Last year marked the first year since the Supreme Court reversed PASPA in which no new jurisdictions in the United States legalized sports betting. iGaming legislation also stalled in New York, Massachusetts, and Illinois. The twist this year is a legislative push to curb prediction markets like Kalshi, Polymarket, and Robinhood from offering sports-event contracts.

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State-by-State Legislative Outlook
(Gaming, Sports Betting & Prediction Markets)

Here's a rundown of where sports betting, iGaming and prediction markets legislation stand in states across the nation.

Alabama

• Gambling Introdcution:
  • Sen. Merika Coleman introduced legislation allowing voters to decide on a lottery, casino gaming, and retail and online sports betting.
• Outlook: Familiar proposal with slim chances of passage. Gambling remains a major political hurdle.

California

• Outlook:
  • Legalized sports betting or iGaming is highly unlikely within the next five years.
  • Tribal nations are actively opposing sportsbooks, online casinos, sweepstakes models, and prediction markets.
  • Tribes maintain significant influence in Sacramento.

Hawaii

• Online Sports Betting:
  • Lawmakers nearly passed sports betting legislation last year, and the issue is back in 2026. SB 3303 and HB 2570 would legalize sports betting by issuing at least six licenses, each carrying a $500,000 fee for the initial five years, with a 15% tax on gambling revenue. The Legislature has also formed a Tourism and Gaming Working Group tasked with submitting recommendations by late 2026 or early 2027
  • Outlook: Momentum exists, but the working-group timeline may slow legislative action until next year.
• Prediction Markets:
  • The House Committee on Consumer Protection and Commerce advanced an amended version of HB 2198 that would classify prediction markets as illegal gambling under state law. The bill would ban trading tied to sports and contests, politics and elections, catastrophes and public-health emergencies, people-based outcomes, and death-related outcomes. This would be an easier bill to pass, but its legality remains uncertain in the courts.

Illinois

• Prediction Markets:
  • A bill has been filed to restrict sports‑related prediction market trades, viewed as a concession to sports‑betting operators.
  • Would likely face legal challenges if enacted.
• Sports Betting Revenue Context:
  • In September of last year, Illinois implemented a $0.25 tax on the first 20 million wagers per sportsbook, increasing to $0.50 per wager thereafter.
  • State sports‑betting revenue is down 15%.
• iGaming:
  • Rep. Edgar Gonzalez Jr. reintroduced the Internet Gaming Act (HB 4797) to legalize online casinos.
  • Similar proposals have been introduced since at least 2021 but have not advanced.
  • Supporters estimate up to $800 million in annual state revenue.
• Outlook: Passage prospects are stronger than last year. Either the iGaming bill or a prediction‑market ban could serve as political relief for sports‑betting operators.

Massachusetts

• Prediction Markets: Kalshi is facing a preliminary injunction related to sports‑based trades.
• Sports Betting: A bill from last year proposing a 51% tax rate and a ban on prop wagers has been reintroduced but is not expected to reach the Senate floor.
• iGaming:
  • House Bill 332 (Rep. Daniel Cahill) and Senate Bill 235 (Sen. Paul Feeney) would allow the state’s three casinos to partner with up to two online operators each.
  • The Massachusetts Gaming Commission could issue two additional licenses not tied to physical casinos.
  • Licenses would cost $5 million for five years, with a 20% tax on operator revenue.
  • Framework emphasizes state oversight and consumer protection.
• Outlook: Odds of passage are better than last year, though anti‑gaming sentiment remains. The central tension is revenue generation vs. public health concerns.
• Regional Context: Rhode Island and Connecticut already permit iGaming.

Minnesota

• Sports Betting:
  • Legislation narrowly missed passage last year and remains active.
  • Current effort includes banning multiple online platforms.
  • Sports betting would be conducted in partnership with tribes and existing pari‑mutuel operators.
• Outlook: Strong chance of passage this year.

Mississippi

• Sports Betting:
  • A bill legalizing online sports betting has once again passed the House.
  • Prospects in the Senate remain a coin toss.

New York

• Prediction Markets: The Attorney General publicly opposed prediction markets ahead of the Super Bowl.
• Sports Betting: Several bills seek to restrict live wagering and player props, but none are expected to pass.
• iGaming:
  • Sen. Joseph P. Addabbo Jr. (D‑15) reintroduced Senate Bill 2164, identical to his early‑2025 proposal.
  • Proposed 30.5% tax on iGaming revenue.
  • License fees range from $2M to $10M.
  • Covers online casinos, poker, slots, and live‑dealer games.
• Outlook:
  • Passage chances are higher than last year, though this is the fourth attempt.
  • Momentum comes from three new NYC‑area retail casinos and a labor‑focused provision.
  • The bill directs $25M annually toward employee training, responsible‑gaming initiatives, and workforce development.
  • If approved this year, iGaming would launch in early 2027.

Oklahoma

• Sports Betting:
  • Legalization requires legislative approval, the governor’s signature, and alignment with existing gaming compacts involving 39 tribal nations.
  • Tribes and professional sports organizations are central stakeholders.
• Outlook: Bill has been pending in the Senate since last year and has a good chance of advancing.

South Carolina

• Gambling Status:
  • No legal gambling beyond the lottery and bingo. A casino bill was sent back to committee in House, all but killing the measure.
• Online Sports Betting
  • An online-betting-only proposal returns this year. It allow a minimum betting age of 18, up to eight skins, and would create a South Carolina Sports Wagering Commission. The bill sets a 12.5% tax rate on net betting revenues.
• Outlook: Increased urgency this year, influenced by the success of legal sports betting in neighboring North Carolina. A hearing on the sports-betting bill is set for February 18.

Texas

• Outlook: No meaningful movement expected before 2027.

Wisconsin

• Online Sports Betting:
  • The state is expected to legalize online sports betting by adopting a Florida‑style model, allowing statewide betting via servers located on tribal lands.
  • Major commercial operators (including DraftKings and FanDuel) oppose the bill, as it would exclude them and create a Hard Rock–style monopoly similar to Florida.

State-By-State Likelihood of Passage — 2026

Above 75%

Minnesota: Sports betting structured with tribes and pari-mutuel operators after narrowly missing passage last year.
Oklahoma: Sports betting bill pending in the Senate with tribal and professional sports support.
Wisconsin: Florida-style tribal-server model creates a clear legal path for statewide online betting.

35 - 75%

Massachusetts: iGaming momentum has improved, but public-health opposition remains.
New York: Fourth attempt at iGaming; labor provisions and NYC casinos improve odds, but passage is not guaranteed.
Illinois: iGaming and prediction-market bills gaining traction amid declining sportsbook revenue.
Mississippi: Online sports betting cleared the House again; Senate outcome remains uncertain.
Hawaii: Sports betting nearly passed last year; renewed push exists, but timing may slow action.

Below 35%

Alabama: Gambling expansion remains politically difficult.
South Carolina: No commercial gambling framework beyond the lottery.
Texas: No meaningful movement expected before 2027.
California: Tribal opposition blocks sportsbooks, iGaming, sweepstakes, and prediction markets.

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