Sweepstakes Bills in Tennessee, Oklahoma, Louisiana and Iowa Lead This Week’s Gambling Bills That Mattered

The past week saw lawmakers in Tennessee, Oklahoma, Louisiana, and Iowa moving bills tied to sweepstakes casinos and unregulated gambling to governors. At the same time, Colorado and Connecticut advanced responsible gambling, integrity, and tax measures.

Here are the gambling bills that mattered this week.

Sweepstakes and Prediction Markets

Bills Heading to the Governor’s Desk

Iowa and Louisiana formally sent gambling enforcement bills to their governors after lawmakers passed the measures last week.

Iowa’s SF 2289 gives regulators broader enforcement tools against unlicensed gambling operators, while Louisiana’s HB 53 expands racketeering tools tied to illegal gambling.

Meanwhile, Tennessee’s House Speaker signed SB 2136, a sweepstakes casino ban bill, and SB 1992, a prediction market-related measure. The Senate Speaker signed both bills last week, and they now head to Gov. Bill Lee’s desk.

In Oklahoma, the House passed SB 1589 without amendments, and chamber leaders moved quickly to send the bill to Gov. Kevin Stitt.

Why it matters:

Four states are moving one step closer to passing new laws targeting unregulated gaming. In Oklahoma and Tennessee, the measures directly target dual-currency payment systems used by sweepstakes casinos.

Meanwhile, in Iowa and Louisiana, the bills would give state regulators greater enforcement tools.

Louisiana HB 883 Advances in Senate

Separately from HB 53, Louisiana is advancing HB 883, a bill directly targeting sweepstakes casinos and dual-currency payment systems.

The measure passed in the House earlier this month and now awaits third reading in the Senate.

Why it matters:

If passed, Louisiana could have two separate approaches to target unlicensed operators, such as sweepstakes casinos.

Responsible Gaming and Oversight

Separate Colorado Bills Advancing

The Colorado legislature passed SB 163, which would create a broader structural overhaul of the state’s gambling regulatory framework.

Separately, two House committees advanced SB 131, which is scheduled for a third reading on May 8.

The responsible gaming measure includes provisions such as restrictions on advertising and promotional language, as well as limiting deposits. Notably, lawmakers stripped it from earlier provisions that banned prop bets and prevented sportsbooks from limiting sharp bettors.

Why it matters:

Colorado is moving forward with tightening oversight and introducing enhanced responsible gaming measures. However, the removal of earlier provisions from SB 131 highlights how politically difficult it is to enact aggressive sportsbook restrictions.

Connecticut Passes College Ad Restrictions and Betting Integrity Bills

Connecticut lawmakers passed HB 5229, which restricts gambling advertising on college and university campuses and includes other online wagering reforms.

They also passed SB 296, which expands the state’s cheating statute to cover rigging tied to sports betting, match-fixing, collusion, and the misuse of confidential information.

Both bills now await formal enrollment before moving to Gov. Ned Lamont’s desk.

Why it matters:

Connecticut is advancing measures to address two growing policy concerns: gambling marketing directed at college students, many of whom are under the legal age to wager, and sports betting integrity risks.

Notable Bills in Missouri, New Jersey, DC

Missouri Kills VLT Bill, Scraps Sports Betting Tax Hike

The Missouri Senate formally killed HB 2989, a bill to legalize video lottery terminals (VLTs) that had passed the House. Supporters have argued that VLTs could replace unregulated skill game machines, which have proliferated in the state.

Separately, lawmakers advanced HB 3553, a gaming bill in the House, but removed language that would have raised the online sports betting tax rate from 10% to 34%.

Why it matters:

The Senate rejection highlights lawmakers’ hesitancy to approve further gaming expansion only months after Missouri launched sports betting, despite supporters’ argument that VLTs could replace unregulated machines.

The rejection of the sports betting tax hike indicates that lawmakers appear reluctant to overhaul the tax structure before the market has more operating history.

DC Holds Online Casino and Sweepstakes Hearing

The DC Council held a hearing on an online casino proposal that also includes restrictions on sweepstakes casinos.

During the hearing, supporters, including operators, framed the measure as a means to reduce illegal gambling and raise tax revenue for the district.

Advocacy groups and representatives of the sweepstakes industry opposed the proposal, citing concerns about problem gambling and objections to restrictions on sweepstakes casinos.

Why it matters:

D.C. is the latest jurisdiction to consider legalizing online casinos or banning sweepstakes casinos. While council members indicated they won’t decide on advancing the bill in the next few weeks at least, the discussions are the first steps toward exploring the possibility of online casinos.

Separately, if the bill fails, lawmakers could revisit a separate sweepstakes casino ban bill.

New Jersey Introduces World Cup Surcharge Bills

New Jersey lawmakers formally introduced companion bills that would impose temporary surcharges tied to the 2026 FIFA World Cup.

Those include a 10% surcharge on online sports betting revenue from tournament wagers. The bills are intended to help offset hosting costs tied to the games at MetLife Stadium.

Why it matters:

The bills highlight how lawmakers increasingly view sports betting revenue as a funding source for major public costs and budget initiatives.