Illegal Gambling Crackdown Expands as Prediction Markets Face Scrutiny — US Gambling Bills That Mattered

Lawmakers across the U.S. advanced several bills targeting illegal gambling this week, while scrutiny of prediction markets increased at both the state and federal levels. Meanwhile, efforts to expand regulated online gambling stalled in several states.

Indiana officially banned sweepstakes casinos, while lawmakers in Florida, Maine, and Hawaii moved forward with measures targeting illegal gambling and sweepstakes casinos. At the federal level, two bills addressing prediction markets were introduced, while Hawaii passed a ban bill.

Elsewhere, efforts to expand regulated online gambling appear to have stalled in several states, including Virginia, Massachusetts, and Maryland.

Here are the gambling bills that mattered this week.

Illegal Gambling Bills Move Forward

Indiana: Governor Signs Sweepstakes Casino Ban

Indiana became the first state this year to formally ban sweepstakes casinos after Gov. Mike Braun signed HB1052 into law.

The legislation prohibits online sweepstakes casino platforms operating under dual-currency promotional models and strengthens enforcement against unlicensed gambling operators.

The measure takes effect July 1.

Why It Matters:

With the passage of the bill, Indiana becomes the seventh state to enact a law targeting dual-currency sweepstakes casino models. As more states enact bans, lawmakers elsewhere may become more willing to advance similar legislation targeting dual-currency sweepstakes models.

Florida: Illegal Gambling Bill Passes Both Chambers

Florida lawmakers are one step away from passing legislation aimed at strengthening enforcement against illegal gambling operations.

The Senate unanimously passed SB 1580 last week, and this week the House approved an amended version by a vote of 82–31, sending the legislation back to the Senate.

Because the House amended the bill, it now heads back to the Senate for concurrence. As the 2026 legislative session ends today, if the Senate does not approve the measure, it will die. Given the strong support for strengthening gambling statutes, SB 1580 still appears likely to pass.

Why It Matters:

If passed, SB 1580 would give regulators more enforcement powers to target illegal gambling operations, such as storefront arcades that are spreading throughout the state.

Hawaii: Senate Advances Illegal Gambling Bill SB3281

Hawaii lawmakers also advanced legislation aimed at addressing illegal gambling activity. This week, the Senate unanimously passed SB 3281, sending the measure to the House.

The proposal establishes a new criminal offense targeting illegal electronic gambling devices.

It defines “illegal electronic gambling device” to include machines commonly known as fish games, fish tables, fishing games, sweepstakes gaming machines, and similar electronic devices.

Why It Matters:

SB 3281 has cleared a major hurdle by passing in one legislative chamber. If the House also passes it, it would give authorities more tools to shut down storefront fish game and sweepstakes-style device operators and expose them to felony charges.

Maine: Sweepstakes Casino Bill Moves to House After Senate Vote

The Maine Senate passed LD 2007, sending the measure to the House.

The legislation creates a new chapter in Maine’s gaming statutes, dedicated to online sweepstakes games. It defines “sweepstakes game” as any internet-based game or promotion that uses a dual-currency system and offers casino-style outcomes.

Despite the bill emerging from committee with a divided report, reflecting disagreement among members, the Senate moved fast, amended some technical language, and passed it.

Why It Matters:

The Maine Senate became the latest legislative chamber to pass a sweepstakes casino ban bill, indicating growing support for prohibition.

Maryland: Lawmakers Hear Sweepstakes Enforcement Bill

A Maryland Senate committee held a hearing on SB 652, which would strengthen enforcement against sweepstakes casino operators in the state.

Lawmakers heard testimony in support of the ban by the Maryland Lottery and Gaming Control Agency, which calls for expanded powers to target sweepstakes casinos. SB 652 is the fourth bill targeting sweepstakes casinos this session. Like the other bills, lawmakers heard testimony but did not vote.

Why it Matters:

The gaming regulator has testified in favor of all sweepstakes ban bills, strongly supporting prohibition. The hearing highlights divisions among lawmakers, with some questioning whether sweepstakes casinos should be banned outright or regulated instead.

iGaming Expansion Stalls

Maryland: Online Casino Debate Ends Without Vote

In addition to the sweepstakes casino ban, the Senate Budget and Taxation Committee heard testimony on SB 885, a bill to legalize online casinos in the state.

There was strong support and opposition for the measure. Proponents included some retail casino operators (MGM and Caesars), the iDevelopment and Economic Association, the Sports Betting Alliance, and the Maryland Youth Advisory Council. They argued that iGaming will reduce illegal gambling in the state and generate tax revenue.

Opponents included casino operators such as Cordish and Oceans, as well as labor unions. They argued that iGaming threatens jobs and retail casino revenue, which supports local communities.

The committee did not vote on SB 885.

The committee was also scheduled to discuss SB 884, which would have legalized online poker, and SB 761, a bill that allows a voter referendum if the legislature passes SB 885 and SB 884. However, the sponsor, Sen. Ron Watson, withdrew the measures.

Why It Matters:

Watson’s withdrawal of the two bills signals a lack of support. In addition, the strong opposition has blocked previous iGaming efforts in the state and could be critical this year.

Virginia iGaming Push Suffers Setback

Online casino legalization in Virginia faces a tight deadline as the legislative session adjourns on March 14. Several bills are in conference committees, and they must come out today for each chamber to vote on them.

Separately, a Senate committee voted to push a bill to establish a Virginia Gaming Commission to the 2027 legislative session. A separate Senate bill on the topic sits in a conference committee.

Why It Matters:

HB 271’s push to 2027 could be a significant development, as both the former Governor, Glenn Youngkin, and the current Governor, Abigail Spanberger, have signaled that a regulatory authority must be established before any gambling expansion.

Massachusetts iGaming Bill Sent to Study

One of Massachusetts’ online casino proposals also stalled this week.

Lawmakers sent SB 235 to a study order, a procedural move that effectively halts the bill for the remainder of the legislative session.

Why It Matters:

The study order signals that lawmakers either oppose or are split on iGaming expansion.

Prediction Market Scrutiny Increases

Hawaii: House Passes Prediction Market Bill HB2198

In addition to the electronic gambling machine bill, Hawaii lawmakers also advanced legislation addressing prediction markets.

The House passed HB2198, sending the measure to the Senate. If enacted, the proposal would define prediction markets as illegal gambling under state statutes.

Why It Matters:

The bill highlights growing efforts by state lawmakers to determine how prediction market platforms fit within existing gambling laws.

Federal Lawmakers Introduce Prediction Market Bills

Prediction markets have also come under scrutiny from federal lawmakers, who have now introduced several bills.

U.S. Senator Richard Blumenthal introduced the Prediction Markets Security and Integrity Act, which bans wagers on war, cracks down on insider trading, and protects consumers from fraud. It also “reverses the Commodity Futures Trading Commission’s attempt to preempt state gambling regulations.”

Additionally, Sen. Adam Schiff and Rep. Mike Levin introduced bicameral legislation, called the DEATH BETS Act, to prohibit prediction market contracts that involve, relate to, or reference terrorism, assassination, war, or an individual’s death. The legislation came after increased scrutiny surrounding markets connected with U.S. military action against Iran.

Separately, Reps. Blake Moore and Salud Carbajal introduced bipartisan legislation last week to establish a regulatory framework for prediction markets.

Previously, Rep. Dina Titus introduced a bill to prohibit sports event contracts.

Why It Matters:

The proposals signal increasing federal attention toward prediction markets as the sector expands into sports and other real-world outcomes, and as insider trading concerns grow.