Gambling Industry Stories to Watch: Jan. 26–30, 2026

This week brings a mix of state and federal developments across the U.S. gambling landscape, as lawmakers schedule hearings on sweepstakes and gaming enforcement bills, courts set new deadlines in prediction markets litigation, and Congress runs short on time to act on gambling loss deductions.

Gambling Industry Stories to Watch: Jan. 26–30, 2026
Photo by Markus Winkler on Unsplash

State Gambling Bills: Hearings Scheduled This Week

Several states have formally placed gambling-related legislation on committee agendas, signaling potential near-term movement.

Maryland: SB 112 (Sweepstakes Casino Ban)

On Jan. 28, the Maryland Senate’s Budget and Taxation Committee will discuss SB 112, a bill that would explicitly ban sweepstakes casinos and platforms using multicurrency formats. The proposal seeks to close what lawmakers describe as a loophole allowing casino-style games to operate without state licensure.

Maryland is one of the first states to open discussions on prohibiting sweepstakes casinos. Last week, a proposal in Indiana cleared its initial committee and awaits further action. Several other states have introduced similar measures, but have not placed them on the calendar.

Florida: SB 204 (Targeting Illegal Gambling Machines)

Florida’s SB 204 is scheduled for a hearing before the Senate Regulated Industries Committee on Jan. 27. The bill targets illegal land-based gambling machines, which remain widespread in the state. It requires declaratory rulings for unclear devices and increases penalties for unlicensed gaming equipment.

SB 204 is one of several active bills in Florida that target illegal gambling.

Washington: SB 6137 (Expanding Prop Bets)

On Jan. 28, the Washington Senate Business, Trade & Economic Development Committee will consider SB 6137, a bill that reinforces the state’s tribal only sports betting framework.

Notably, the bill expands the definition of permissible wagers, potentially allowing a wider range of proposition-style bets. Existing prohibitions on bets involving in-state college athletes would remain in place.

The provision is noteworthy amid calls for bans on prop bets, and states like New York and New Jersey have introduced bills to ban them.

Nebraska: LB 1001 (Broad Racing and Gaming Bill)

Nebraska’s LB 1001 is scheduled for a hearing on Jan. 26, before the Legislature General Affairs Committee.

The bill is a broad racing and gaming package that includes changes to problem gambling governance and funding structures, including revisions affecting the Nebraska Commission on Problem Gambling and related assistance funds.

While not a direct expansion bill, it reflects Nebraska’s ongoing effort to formalize and modernize its post-legalization framework.

Rhode Island: HB 7197 (Social Gaming & Office Pools)

Rhode Island’s HB 7197 addresses “social gaming” in the state. It would legalize limited forms of “social gaming,” including private home games and office pools, provided no host, venue, or operator takes a cut.

The bill clarifies that purely social gambling and certain nonprofit-run pools do not violate state gambling laws. So long as all entry fees are paid out to participants or charitable purposes.”

The House Judiciary Committee will discuss the measure on Jan. 29.

Hearings to Watch: Bills That Could Still Hit the Agenda

A few other bills could receive hearings or a vote this week.

Florida: HB 189 and HB 591

On the House side, Florida’s HB 189 and HB 591 could be added to the schedule at the last minute. Both bills’ committees will meet this week, but the measures are not on the agenda so far.

HB 189 has already advanced through one committee on Jan. 14, while HB 591 awaits its first hearing. Both measures address illegal gambling, including activities conducted online. While not explicitly naming sweepstakes casinos, both bills could effectively allow state regulators to target the platforms.

Utah: SB 38 and HB 243

The Utah House could vote on two measures that could impact illegal gambling in the state, including sweepstakes casinos.

SB 38, which gives regulators new consumer protection weapons, has already passed the Senate and now awaits action in the House. HB 243, meanwhile, addresses gambling-related revisions such as adding a definition of “fringe gambling,” which includes sweepstakes and lotteries.

Prediction Markets: Litigation Pressure Builds Again

Massachusetts Deadline: Jan. 30

Massachusetts remains a focal point of prediction market litigation following last week’s ruling, in which a state judge granted a preliminary injunction barring Kalshi from offering futures contracts on sporting events in the Bay State.

The court has temporarily delayed enforcement of the injunction while considering Kalshi’s request for a stay. The Commonwealth must file its opposition by Jan. 30, with Kalshi’s reply due shortly thereafter.

Will Connecticut Follow Suit?

Several states, such as New York, Tennessee, Nevada, New Jersey, and Ohio, have already cited the Massachusetts ruling as supplemental authority in their own actions against Kalshi.

Industry observers expect Connecticut to follow suit and reference the Massachusetts decision, after other states have already done so.

Federal Watch: Gambling Loss Tax Fix Nears a Deadline

At the federal level, time is running out for proponents of restoring the 100% gambling loss deduction. After the House failed to advance multiple measures last week, hopes now rest with the Senate, which faces a Jan. 30 deadline to pass FY26 spending legislation.

If the Senate follows the House without a fix, gamblers will be able to deduct only 90% of their gambling losses, compared to 100% (up to the winnings) that was in place until 2025.

Looking Ahead: More Sweepstakes Bills Likely

Beyond this week’s hearings, there are good chances that additional bills targeting sweepstakes casinos will emerge, whether framed as explicit bans, tightening of illegal gambling definitions, or consumer protection measures.

Based on early activity in the 2026 session, the question is no longer whether more states will act, but how quickly additional proposals reach committee agendas.

Topics
IndustryLegal & RegulatoryPrediction MarketsSports BettingSweepstakes
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Chavdar Vasilev
Global Wire Editor

Chavdar Vasilev is the Global Wire Editor at Gambling Insider, overseeing first-day coverage of breaking developments across the global gambling industry. His work focuses on regulation, enforcement actions, earnings, market activity, and emerging sectors, including prediction markets and sweepstakes casinos.

Previously, Vasilev reported for publications including CasinoBeats and Bonus.com, covering industry-shaping stories across the U.S. and beyond, from legislative debates and market expansion to financial performance and operator strategy.

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