The United States experienced an unprecedented stagnation in the expansion of sports betting during the year 2025. Although Missouri opened its market in December, the legislation that allowed it was approved in 2024, making 2025 the first year without new legalizations since the PASPA decision in 2018.
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Currently, only ten states maintain a ban on sports betting. Seven of them introduced bills this year, but none managed to become law. Legislative attempts ranged from proposals for online betting with tax rates of 20% to constitutional amendments, but all failed at different stages of the process.
Hawaii leads the possibilities for 2026 in the United States
Among the states without legalization, Hawaii shows the most promising prospects. Bill 1308 advanced significantly in the Senate before stalling in the House due to disagreements over the tax rate.
Representative Daniel Holt expressed cautious optimism: “We’ve come a long way this year, but it seems we haven’t reached an agreement on the details. We simply have to work harder next year and see if we can capture these much-needed tax revenues for our state.”
Georgia, Minnesota, and South Carolina also introduced multiple bills that did not progress beyond the initial committees. Alabama and Alaska saw similar unsuccessful legislative attempts, while Idaho and Utah showed no significant activity on the issue.
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States with diverse outcomes
California took a contrary stance, intensifying measures against sweepstakes, daily fantasy sports, and prediction markets instead of moving towards legalization. Texas, despite having some support, made no significant efforts during the legislative year.
Nebraska and Wisconsin are working to expand their existing frameworks. Nebraska lawmakers are seeking a vote from residents on the introduction of online betting, while Wisconsin hopes to resume a bill postponed this year in 2026 to allow fully online sports betting.
Sports Betting Industry Opinions
Jason Robins, CEO of DraftKings, suggests that prediction markets could indirectly drive legalization: “As the growth of predictions continues, this could also motivate more states to legalize online sports betting and iGaming with reasonable regulation and taxes.”
Outlook for 2026
The landscape for 2026 includes legal battles over the legality of prediction markets and renewed legislative efforts in states like Hawaii and Georgia, as the industry navigates between traditional regulation and innovation in legal gray areas.
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