Gambling Stories to Watch This Week: Gambling Bills and Prediction Market Court Hearings
Conference negotiations, sweepstakes bans, sports betting votes, and prediction market court hearings round up the upcoming week.
This week brings a busy gambling agenda, with conference committees, sports betting expansion hearings, and sweepstakes ban proposals scheduled in multiple states. At the same time, federal court arguments in two prediction market cases may further shape the ongoing state-versus-federal regulatory divide.
From Indiana’s conference negotiations to Nevada’s courtroom clash with Kalshi, here’s what to watch.
State Legislative Hearings to Watch This Week
Indiana HB 1052 Heads to Conference Committee (Feb. 23)
Indiana’s HB 1052, a broad administrative bill that includes provisions to prohibit sweepstakes casinos, has a conference committee hearing scheduled for Feb. 23, following the Senate’s amendment of the House-passed version.
The Senate passed the bill, but the House rejected its amendments. Now, lawmakers must find a compromise. Time is of the essence as the Indiana 2026 legislative session adjourns on Friday.
If passed, Indiana could become the first state in 2026 to enact a ban on sweepstakes casinos, joining six states that did so in 2025.
What to watch:
- Whether negotiators reach a compromise and whether they retain the sweepstakes prohibition language.
- How quickly the conference report moves to final votes.
Tennessee SB 2136: Sweepstakes Ban Proposal (Feb. 24)
Tennessee Senate Bill 2136 is scheduled for consideration Feb. 24 after being deferred from Feb. 17. The measure and its companion House Bill 1885 propose prohibiting “online sweepstakes games” that use virtual currency.
The language explicitly targets the model used by sweepstakes casinos, banning the use of a currency that is “purchased, received through a bonus or promotion, or received for free with the purchase of another type of currency,” and used to “exchange the currency for a prize, award, cash, or cash equivalent.”
What to watch:
- Whether lawmakers frame the issue as regulation versus prohibition.
- Whether the committee votes and advances the measure.
Washington SB 6137: College Prop Bets Debate (Feb. 24–25)
Washington Senate Bill 6137 is scheduled for House hearings Feb. 24 and 25 after passing in the Senate earlier this month.
The bill would allow betting on individual college player propositions. With this bill, Washington lawmakers are moving in the opposite direction of national trends, as multiple states have banned or are moving to prohibit these types of bets due to integrity concerns.
What to watch:
- Any debate over integrity concerns.
- Whether the bill advances to the House floor.
Hawaii SB 3281: Illegal Gambling Device Crackdown (Feb. 24)
Lawmakers in Hawaii, one of two states without any form of gambling, including a lottery, will discuss Senate Bill 3281 on Feb. 24.
The bill would create a new criminal offense for promoting “illegal electronic gambling devices.” These include fish games, sweepstakes gaming machines, or similar devices that are increasingly appearing across the state.
What to watch:
- Any amendments that would include online gambling devices, potentially targeting sweepstakes casinos.
- Whether lawmakers advance the bill.
Alaska HB 145: Sports Betting Proposal Set for Hearing (Feb. 25)
On Feb. 25, Alaska lawmakers will discuss House Bill 145, which would authorize mobile sports betting in the state.
The bill authorizes up to 10 sportsbooks. They would have to pay an annual license fee of $100,000 and pay 20% tax on adjusted gaming revenue. The measure is a carryover from 2025, where it failed to receive a vote.
The proposal returns amid broader national debate over sports wagering frameworks and emerging prediction market platforms.
What to watch:
- Whether the bill gains traction in committee and advances.
South Dakota SJR 504: Online Sports Betting Vote Proposal
South Dakota Senate Joint Resolution 504 is set for a House committee hearing on Feb. 25.
The proposal, which cleared the Senate earlier this month, would create an online sports betting referendum to be voted on in November. South Dakota currently allows retail sports betting in Deadwood.
What to watch:
- House committee vote and margins.
Florida S 1580: Illegal Gambling Crackdown (Feb. 25)
Florida Senate Bill 1580 is set for a hearing on Feb. 25 and focuses broadly on illegal gambling activity.
The bill is one of several proposals this session to address illegal gambling in the state. It would update Florida’s gambling statutes by increasing criminal penalties and expanding definitions of unlawful gambling (including online gambling and online sports betting).
It would also strengthen regulators’ enforcement tools and tighten penalties for illegal gaming activity statewide.
What to watch:
- Any amendments to include dual-currency or virtual currency platforms.
- Whether lawmakers advance the bill to the Senate floor.
Virginia Gambling Bills Await Possible House Hearing (Feb. 24)
Multiple Senate-passed gambling bills now sit before the House General Laws Committee. While no agenda is published, the committee is scheduled to meet on Feb. 24, so it could consider one of four gambling-related bills:
- Virginia Senate Bill 118 – iGaming legalization
- Virginia Senate Bill 756 – Fairfax County casino authorization
- Virginia Senate Bill 129 – DFS regulation
- Virginia Senate Bill 661 – skill game regulation
Virginia has moved relatively quickly on gambling bills this session. With multiple gambling measures advancing through both chambers, cross-chamber consideration will determine which proposals move forward.
What to watch:
- Whether the committee discusses or schedules a hearing on any of the four bills.
Prediction Markets: Courtroom and Political Catalysts
Kalshi v. Nevada
In the latest update in the Kalshi vs. Nevada case, a virtual hearing is scheduled for Feb. 24 on Nevada’s emergency motion to remand its civil enforcement action (and pending Temporary Restraining Order) against Kalshi back to state court after Kalshi removed the case to federal court last week.
What to watch:
- Whether Judge Miranda Du sends the case back to the state court.
Coinbase v. Illinois
Coinbase’s lawsuit against Illinois regulators also has oral arguments set for Feb. 24.
As with all prediction market-related lawsuits, Coinbase argues that its products are federally regulated derivatives, not subject to state sports betting regulations.
At the end of January, Illinois received backing from tribal groups. Twenty-three federally recognized tribes, the Indian Gaming Association, the National Congress of American Indians, multiple state tribal gaming associations, and tribal regulators filed a proposed amicus, or “friend-of-the-court,” brief supporting Illinois regulators and urging the judge to dismiss Coinbase’s suit against the state.
What to watch:
- Judicial framing of swaps versus wagers.
- The court’s interpretation of the federal preemption doctrine.
- Whether the court signals receptiveness to federal preemption arguments.
Trump’s State of the Union and Prediction Market Volume
Prediction markets have also surged around President Trump’s State of the Union address on Feb. 24, with millions of dollars trading on what the president would say.
The market is one of the top trending on Kalshi, with about $3.5 million in trading volume. Words like “trillion”, “250”, and “ICE” currently lead, while others like “discombobulator”, a nickname previously used to describe a weapon in a Venezuela raid, are near the bottom.
Big recent movers up include whether he will mention “alien”, “Olympics”, and “rare earth/mineral.” Meanwhile, big drops include “cheat/cheater/cheating” and “Genius Act.”
What to watch:
- Whether Trump mentions any low-chance words.
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