Gambling Bills That Mattered This Week: Expansion, Illegal Gambling Crackdown, Tax, and Prediction Markets

As the 2026 legislative session advances, gambling policy is splitting into two clear tracks: expansion and enforcement. Maryland and Alabama moved to authorize new regulated markets, Virginia and South Dakota pushed sports betting forward, several states targeted gray-market platforms, Illinois reconsidered its per-bet tax, and Congress signaled fresh scrutiny for prediction markets.

Gambling Expansion

Maryland — House iGaming Bills Join Senate Push

After Senate lawmakers introduced bills to legalize online casinos and authorize a voter referendum last week, two companion bills, HB 1343 and HB 1255, were filed in the House this week. First hearings were scheduled for March 5.

The filings are not surprising, marking the fourth straight year lawmakers have attempted to legalize online casinos.

Why it matters:

Maryland is one of the largest untapped iGaming opportunities on the East Coast, sitting between mature markets like New Jersey and Pennsylvania.

Past efforts stalled amid opposition from land-based casinos and labor groups, but this year’s bills aim to address those concerns by revising protections. With elections looming and the House having approved iGaming in 2024, momentum may be stronger than in previous cycles.

Alabama — House Lottery Proposals

After a bill to legalize lottery, casinos, and sports betting emerged in the Alabama Senate earlier this month, a pair of House bills to establish a lottery and a regulator were introduced this week.

HB 448 would legalize the lottery at the constitutional level, and HB 449 establishes the corporation, rules, and revenue structure to actually operate and fund it.

Why it matters:

Alabama remains one of five states without a state lottery and one of the most restrictive gambling jurisdictions in the country. The latest House attempts indicate there’s renewed interest this year, and, being an election year, any constitutional amendment could ultimately land on November’s ballot.

Still, 2024’s one-vote Senate failure underscores how narrow the path remains, even for a lottery-only proposal.

Virginia — Multiple Gaming Measures Advance Toward Senate Votes

Several Virginia gambling bills are moving through the Senate, covering topics such as iGaming, daily fantasy sports regulation, skill games, and casino authorization in Fairfax County.

SB 118, SB 129, SB 661, and SB 756 all now await a third reading in the Senate.

Why it matters:

The quick advancement signals sustained legislative appetite to expand and refine the state’s regulated market. If they advance after the third reading, they will cross over to the House, marking a significant step toward enactment.

South Dakota — Mobile Sports Betting Referendum Clears Senate

The South Dakota Senate passed a bill that would let voters decide whether to expand sports betting beyond Deadwood’s retail-only model to include statewide mobile wagering.

Why it matters:

South Dakota’s current structure limits betting to physical casinos, capping both participation and handle. Mobile authorization would dramatically widen access and could multiply revenue with minimal additional infrastructure costs.

Illinois — Repeal of Per-Bet Tax Considered

While not an expansion bill, an Illinois bill would repeal the state’s controversial per-bet tax structure — a flat fee levied on every sports wager placed, regardless of outcome.

Why it matters:

Illinois Gaming Board data show bettors placed 27.6 million fewer wagers between September and December 2025 compared with the prior year — a period when operators introduced surcharges and minimum bets in response to the tax.

Repealing the tax would remove the surcharges and minimum bet requirements, potentially restoring wagering volume and competitiveness.

Illegal & Sweepstakes Crackdowns

Indiana — Enforcement Bill Advances From Senate Committee

Indiana’s broad administrative bill, which includes a provision to prohibit dual-currency sweepstakes casinos, cleared a Senate committee this week. The House passed the measure last week.

Why it matters:

Committee approval suggests the Senate is aligning with the House on closing sweepstakes loopholes. With the provision central to debate throughout the process, the bill now sits one step closer to a statewide prohibition.

Florida — Twin Bills Strengthen Illegal Gambling Prohibitions

Two Florida bills moved one step closer to a floor vote this week. In the House, HB 189 now awaits a floor vote, while in the Senate, SB 1580 advanced through committee.

Both bills target illegal gambling, including storefront arcades that have been a major issue in the state. They also include provisions for illegal online gambling, potentially capturing sweepstakes-style platforms as well.

Why it matters:

Florida’s size makes it one of the most consequential enforcement battlegrounds in the country. Stricter rules would help authorities target illegal storefront arcades that have proliferated in the state and illegal online platforms while protecting the Seminole Tribe’s compact-backed monopoly.

Utah — Consumer Protection Tools That Could Hit Illegal Gaming

Though Utah bans gambling outright, SB 38 strengthens enforcement of deceptive trade practices and consumer protections that could be used against disguised gaming products, such as sweepstakes casinos.

The bill, already passed by the Senate, moved to third reading in the House, meaning it’s only one step away from passage.

Why it matters:

States increasingly rely on consumer law rather than gaming statutes to pursue offshore or sweepstakes operators. Utah’s approach offers a legal workaround that other anti-gambling jurisdictions may replicate.

Federal Spotlight: Prediction Markets

Rep. Titus, who has been the champion in reversing the new gambling loss deduction, introduced legislation to block sports-event contracts bypassing state gambling laws by claiming commodities-market status.

Why it matters:

Though the bill faces a long path amid ongoing litigation, it marks one of the first direct congressional attempts to prevent prediction markets from sidestepping state gambling regulation.

Big Picture: Expansion vs. Enforcement

This week’s activity highlights a widening policy divide in U.S. gambling regulation:

• Expansion efforts continue in states like Maryland, Alabama, Virginia, and South Dakota as lawmakers push to unlock new revenue streams, modernize the betting frameworks, and capture offshore demand.
• At the same time, crackdowns on illegal operations picked up pace from Florida to Indiana to Utah — a clear sign that states are no longer content to cede market share to gray operators.

Taken together, the measures show lawmakers moving beyond simple legalization debates and into a more mature phase of regulation — balancing growth, tax policy, consumer protection, and enforcement across a rapidly evolving market.