Bills That Mattered This Week: Virginia Delays iGaming, Sweepstakes Bans Advance, and States Target Prediction Markets

The past week brought significant gambling legislation across the country. Virginia advanced multiple bills reshaping its gaming framework, Indiana sent a sweepstakes casino ban to the governor, and other states moved measures addressing mobile sports betting and illegal gambling enforcement.

Here’s what mattered — and why.

Virginia Advances Broader Gambling Package, Delays iGaming to 2028

This week, committees in both chambers advanced broader gambling packages that the other chamber had already passed.

On Feb. 24, the House General Laws Committee advanced the Senate proposals on iGaming, DFS, skill game regulation, a gaming regulator restructuring measure, and a Fairfax Casino referendum, amending all of them.

Perhaps the most significant change was the committee’s adoption of a substitute to conform SB 118 — which would legalize online casinos — to the House version, HB 161, including a two-session reenactment requirement before it can take effect.

That means, even if it passes this year, the Legislature must pass it again in 2027, delaying a possible launch until 2028.

At the same time, the Senate General Laws and Technology Committee advanced HB 161, along with other House bills, the following day, reinforcing that Virginia lawmakers are not slowing down broader gaming oversight even as they defer online casino launch timelines.

Why It Matters:

Virginia remains one of the most closely watched potential iGaming expansion states. A 2028 delay indicates:

• Lawmakers want more time before authorizing a full rollout of online casinos.
• Political resistance to immediate expansion still exists.

The advancement of the rest of the bills shows the state is still actively refining its gambling regulatory architecture — just not yet ready to give the green light to iGaming.

Sweepstakes Casinos and Illegal Gambling: Indiana Passes HB 1052, Bills Advance Elsewhere

Several states advanced legislation targeting promotional sweepstakes casino models this week.

Indiana HB 1052 — Legislature Sends the Bill to the Governor

On Feb. 26, the Indiana legislature passed HB 1052, a broad administrative measure that includes a provision explicitly prohibiting sweepstakes casinos. The bill now heads to Governor Mike Braun’s desk.

Why It Matters:

If Gov. Braun signs the bill into law (or takes no action), Indiana will explicitly prohibit sweepstakes casinos starting July 1, 2026. That would make the state the first in 2026 to ban the unregulated platforms, joining six other states that did so in 2025.

Tennessee SB 2136 — Sweeps Ban Bill Advances

In Tennessee, SB 2136 advanced unanimously from committee and now heads to the floor. The bill and its House companion, HB 1885, define “online sweepstakes games” that use virtual currency. Before passing it, the Senate Commerce and Labor Committee amended the language to replace “a virtual-currency system” with “a virtual-currency, dual-currency, or multi-currency system”.

Why It Matters:

At the end of 2025, Tennessee aggressively targeted sweepstakes casinos through enforcement actions. Now, lawmakers appear aligned to codify a statutory prohibition on the platforms.

Hawaii SB 3281 — Criminal Offense Created for Illegal Electronic Gambling Devices

A Hawaii committee advanced SB 3281, establishing a new criminal offense targeting illegal electronic gambling devices.

The bill defines “illegal electronic gambling device” to include machines commonly known as fish games, fish tables, fishing games, sweepstakes gaming machines, and similar electronic devices that award or allow the exchange of points, credits, tokens, prizes, gift cards, cash equivalents, or anything of value based wholly or partly on chance or a combination of chance and skill.

It makes promoting such devices a Class C felony and authorizes civil enforcement tools, including injunctive relief and nuisance abatement actions.

Why It Matters:

If enacted, SB 3281 would strengthen the state’s ability to shut down storefront fish game and sweepstakes-style device operators and expose them to felony charges.

While the bill appears primarily aimed at physical machines, its reference to “electronic” devices and sweepstakes gaming models could invite broader interpretation if enforcement authorities choose to test the boundaries of the statute.

Iowa SF 2289 — Enforcement Powers Expanded

The Iowa Senate passed SF 2289, which expands the Iowa Racing & Gaming Commission’s enforcement authority to issue cease-and-desist orders and seek injunctive relief against unlicensed gambling activity — explicitly including “illegal sweepstakes.”

Why It Matters:

SF 2289, which replaced Senate Study Bill 3040, strengthens the Commission’s ability to shut down unlicensed operators, including sweepstakes casinos.

Florida SB 1580 — Illegal Gambling Penalties Expanded

Florida’s Senate Bill 1580 unanimously cleared a second committee this week. The proposal is one of several bills 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).

Why It Matters:

The unanimous advancement through a second committee indicates that lawmakers in Florida are taking illegal gambling enforcement seriously. Clearing another committee improves the bill’s path forward.

Prediction Markets: New Jersey Introduces a Ban Bill

New Jersey introduced SB 3692, a bill prohibiting certain prediction markets while allowing “athletic event markets” only if they comply with state sports wagering regulations.

The bill would prohibit “political markets,” “death markets,” and “catastrophic event markets.” Notably, it would allow sports event contracts only if the platform is licensed under state sports wagering law. The measure imposes responsible gaming requirements and tax parity with online sports betting.

Why It Matters:

New Jersey becomes the latest state to attempt to bring federally regulated prediction markets under state oversight.

The approach differs from that in other states, such as Hawaii or Iowa. Still, the growing number of bills on the issue shows an increased willingness by lawmakers to regulate the highly contested prediction markets at the state level.

Other Notable Developments

South Dakota SJR 504 — Sports Betting Expansion Fails

Sports betting in South Dakota will remain retail-only after a proposal to send a referendum to voters on mobile sports betting died in the House this week.

Earlier this month, the Senate passed SJR 504. However, the House State Affairs rejected it with a 6-7 vote, then deferred it to the 41st legislative day — a procedural move that effectively ends the resolution for the 2026 session.

Why It Matters:

Efforts to bring mobile sports betting to South Dakota are dead for now. Industry observers note the issue could resurface through future legislative maneuvering.

Mississippi HB 4074 — Revised Mobile Sports Betting Proposal

While the Mississippi House already passed HB 1581, a bill to legalize mobile sports betting earlier this session, the chamber quickly passed another this week.

HB 1581’s sponsor, Rep. Casey Eure, introduced HB 4074 earlier this week, and the House passed it quickly. As HB 1581 has stalled in the Senate, Eure’s newest proposal includes changes likely aimed at pleasing Senate critics and the retail casino industry.

They include a 22% tax rate, up from 18.5% for retail sportsbooks, and one skin per casino (down from the two HB 1581 called for). Also, HB 4074 would allocate $50 million annually to the Public Employees Retirement System.

Why It Matters:

The new bill shows Rep. Eure is looking for ways to please critics and finally push mobile sports betting across the finish line.

Indiana HB 1038 — Casino Relocation to Fort Wayne

Earlier this week, the Indiana Senate voted in favor of relocating the Ohio County casino license to the Fort Wayne area. However, the chamber amended the House-passed HB 1038, which the House rejected.

Similar to HB 1052, a conference committee was appointed. According to the bill’s history, a Conference Committee Report has already been submitted to the House, which will likely vote on it today. The Senate will likely vote on it today as well.

However, today is the last day of the legislative session, so if either chamber fails to vote on it or rejects it, the bill would be dead. If passed, voters will have the final say via referendum.

Why It Matters:

If approved, Rising Star Casino Resort will close, and a new casino will open in Fort Wayne. Due to factors such as the presence of several other casinos in the area, Rising Star generates the lowest tax revenue of any Indiana casino. A casino in the Fort Wayne area, which currently has none, would likely increase state tax revenue.

Colorado SB 131 — Prop Bet Ban Proposed

Colorado lawmakers introduced SB 131, a bill that would prohibit sportsbooks from offering proposition bets, including wagers on individual athlete performance. The measure also includes additional responsible gaming restrictions, such as limits on deposits and marketing practices.

Why It Matters:

Colorado becomes the latest state to target prop bets, which have been the subject of debate following multiple recent scandals involving professional and collegiate athletes.

Other states currently considering similar measures include New Jersey, New York, and Indiana. States that have already implemented a ban on specific prop bets include Vermont, Ohio, Maryland, and Louisiana.

Meanwhile, in January, the Missouri Gaming Commission declined to ban player prop bets on college sports, after a nationwide plea from NCAA President Charlie Baker.