US Gambling Bills That Mattered This Week: Virginia Leads, Hawaii Explores, Sweepstakes Debate Continues

Virginia: Broad Gambling Package Advances

Virginia legislators were busy this week with gambling proposals.

The Senate General Laws and Technology Committee took up several gambling-related measures. Those include online casinos (iGaming), the creation of a Gaming Commission, regulation of daily fantasy sports (DFS), regulation of skill games, and more.

Notably, a subcommittee rejected several bills last week, including SB 118, which would legalize online casinos.

However, during the Jan. 28 full committee meeting, lawmakers adopted the measure after significant responsible gaming and consumer protection provisions were added. State Sen. Jeremy McPike said that the controls are “probably more than any other state in the United States at this point.”

Meanwhile, the Virginia House passed HB 515, which would prohibit the use of credit cards for sports betting deposits. The measure now moves to the Senate General Laws and Technology Committee.

Another House bill that advanced through a subcommittee is HB 145. The measure aims to regulate DFS, including taxing revenue at 10% and prohibiting house-banked contests.

What it means

Virginia is moving on multiple fronts at once, but only with guardrails attached. Lawmakers appear willing to expand gaming — from iGaming to skill games — provided each vertical is subject to clear oversight, taxation, and consumer protections.

Multiple bills aimed at creating a Gaming Commission signal that the state is taking a regulatory-first approach. It looks to prioritize control and accountability over rapid growth.

Hawaii: Enforcement, Expansion Pathways, and Prediction Markets

Hawaii remains one of only two states in the nation without any legal gambling — no lottery, no casinos, no sports betting. Still, early in the 2026 session, lawmakers are tackling a range of gaming-related topics simultaneously.

Additionally, the Legislature established a 24-member working group to study the potential legalization of gambling in Hawaii, including costs, benefits, and regulatory options. In its first meeting, the group discussed the growing illegal market in the state.

Broader Gaming Expansion Proposals

Multiple bills from prior sessions carried forward this year:

• HB 1308 proposes regulated sports betting. In 2025, the measure advanced further than any previous effort. While it received support from both chambers, it ultimately failed at the finish line due to disagreements over tax structure and regulatory details.
• SB 893 aims to authorize casino gaming in the New Aloha Stadium Entertainment District and the Hawaii Convention Center.
• HB 1434/SB 1507 (companion bills) would create a Hawaii Lottery and Gaming Corporation to oversee in-person and online wagering.

Additionally, lawmakers have already introduced new bills. HB 1945 floats cruise-ship gaming within Hawaii waters with tax and reporting requirements. Meanwhile, HB 2222 would authorize one casino in Honolulu. It would also establish a Hawaii Gaming Control Commission to oversee licensing, regulation, and taxation of casino operations.

Prediction Markets as Gambling

Another new proposal in 2026 is HB 2198, which would amend Hawaii’s gambling definition to explicitly include “prediction markets,” making financial speculation on event outcomes illegal gambling within the state.

Under the bill, purchasing, selling, or otherwise speculating on securities or commodities tied to contingent events — including sports, contests, people, politics, catastrophes, and death — would be prohibited.

With the bill, Hawaii becomes the latest state to attempt to regulate or ban the fast-growing prediction markets. Last week, Tennessee and Iowa introduced bills targeting the highly debated sector.

Earlier this month, New York lawmakers introduced a measure to prohibit prediction market platforms from offering sports betting contracts to New York residents.

Enforcement and Device Crackdown

Hawaii lawmakers have also prefiled SB 3281, which targets illegal gambling machines — including sweepstakes devices and fish games — by establishing new offenses and civil penalties for operators and hosts of unregulated devices.

What it means

Hawaii is pursuing a multi-track strategy. Lawmakers are studying legalization pathways while simultaneously cracking down on illegal devices and newer products like prediction markets. The approach suggests the state wants tighter control over the existing gray market before deciding whether to formally authorize casinos or sports betting.

Sweepstakes Debates Continue

While this week did not see as much movement on sweepstakes casinos and unlicensed operators as previous weeks, a few states debated the issue.

Mississippi moved an amended sweepstakes ban through committee, with a sharper focus on operator liability rather than ancillary service providers.

Maryland held a hearing on sweepstakes concerns that focused on enforcement gaps, but did not advance a bill to a vote. Notably, the gaming regulator testified that it had sent 75 cease-and-desist orders to sweepstakes operators, with about 33% complying.

In Indiana, a broader omnibus bill containing sweepstakes restrictions cleared second reading in the House. In Iowa, a scheduled hearing on enforcement-focused HSB 586 was cancelled, delaying action for now.

What it means

The enforcement lens continues to dominate the sweepstakes conversation.

States are increasingly drafting liability and penalty frameworks that give regulators and prosecutors clearer statutory authority to pursue operators, rather than debating broader gambling legalization. Mississippi’s operator-centric felony exposure and Maryland’s inquiry into enforcement mechanisms reflect this trend.

The Takeaway

Taken together, the week’s activity shows states refining control before expanding markets. Virginia is advancing new products only with tighter safeguards, Hawaii is studying legalization while policing gray markets, and sweepstakes enforcement remains the preferred tool elsewhere.

The common thread is oversight first, growth second.