American States Review Their Online Sports Betting Laws

The US gambling sector is going through another period of change. Some jurisdictions are looking to expand their sportsbook niche, while others are focusing on tighter controls and new restrictions. Legislatures across the country are debating fresh proposals that could reshape local markets in 2026 and beyond.

South Carolina: Online Sportsbooks Under Discussion

Local lawmakers are set to consider Bill S 444 in the Senate Labour & Commerce Subcommittee. The proposal was introduced during the previous session and has been carried over for further review.

The measure would permit online sports wagering in the state. It would set a cap of 8 licensed operators and establish a dedicated oversight body to supervise the sector. The suggested commission would manage compliance, certification, and performance standards.

The initiative is progressing despite the Governor’s known opposition to gambling expansion. Their term will continue until 2027.

Separately, a bill to legalise land-based casinos recently failed to advance. The House Majority Leader returned that proposal to committee, effectively pausing its progress.

South Dakota: Letting Voters Decide

The state’s lawmakers have introduced SJR 504. The measure would give residents the final say on online sports betting. If approved by legislators, the question would appear on the November ballot.

Under the proposal, digital operators would need to partner with Deadwood land-based casinos. Retail betting has been permitted there since 2020, following voter approval. However, earlier efforts to extend sports wagering to online platforms failed due to strong political resistance.

The current approach shifts responsibility to residents through a statewide referendum.

Maryland and Mississippi: Sweepstakes Restrictions

In Maryland, senators are examining a bill which targets raffle-based casinos. The state’s Lottery & Gaming Control Agency has already issued cease-and-desist letters to certain operators. Officials have noted that legal gaps still allow some platforms to continue working.

Senate Bill 112 aims to eliminate those loopholes. Lawmakers are also preparing to discuss HB 518, a proposal that would prohibit betting on individual college athlete performance markets.

In Mississippi, the Senate committee has advanced SB 2104. The bill would outlaw sweepstakes casinos in the state. Last year, similar legislation cleared the upper chamber but ultimately failed after amendments were introduced that included language on online sports betting.

Louisiana: Expanding Criminal Liability

The state’s House Representative, Bryan Fontenot, has pre-filed HB 53. The legislation would classify certain gaming-related offences as predicate violations under racketeering laws.

The proposal would cover several activities, including:

• wagering conducted in public spaces;
• online play via computer systems;
• operation of electronic sweepstakes machines.

Previously, lawmakers approved a ban on raffle-based casinos, but the Governor vetoed the measure. He stated that the regulator already had sufficient authority to enforce existing gambling laws. Following that decision, the state’s Gaming Control Board issued more than 40 cease-and-desist letters to provincial operators.

Alabama: Possible Constitutional Amendment

Although many observers believe gambling reform may stall this year, Senator Merika Coleman plans to introduce a new proposal. The measure would allow voters to decide whether to change the state constitution. If approved in a referendum, the amendment would authorise the creation of a gaming commission.

The proposal would also allow lawmakers to draft comprehensive legislation covering:

• lotteries;
• sports betting;
• other real-money formats.

A broad reform package passed the House of Representatives in 2024 but failed to pass the Senate by a single vote. The Governor has previously supported structured discussions around gambling policy and created a study commission in 2020 to examine potential impacts.

Maine: Limits on Account Funding Methods

LD 2080, which prevents sports bettors from utilising credit cards to replenish their balances, was advanced.

Lawmakers intend to amend the bill to apply it to the recently approved online casino segment as well. Meanwhile, a local land-based gambling venue has filed a court challenge against the law on iGaming platforms intended exclusively for tribes. The dispute remains ongoing.

Virginia: Elevated Rates and Support for College Sports

Earlier this year, HB 1527 was introduced. The bill would allow betting on in-state NCAA Division I teams. Current law prohibits wagers on domestic college events.

Under the proposal, revenue from such markets would be taxed at 50%, compared with the standard 15% rate applied to other sports betting activities. Funds generated from the higher levy would be directed to support collegiate athletics through a dedicated programme.

The legislation is also connected to the creation of the Gaming Commission. Lawmakers are considering consolidating regulatory responsibilities into a single supervisory authority.

Washington: Expanding Tribal Market Options

The capital currently allows in-person sports betting at native American casinos, along with mobile applications linked to those venues.

Legislators are deciding whether to allow multiple operators within a single tribal location. They are also considering permitting bets on in-state college teams, while maintaining a ban on player-specific proposition markets involving local athletes.

The latest proposals highlight the varied approaches emerging across the country. Some states are moving towards broader online access through structured oversight. Others are prioritising enforcement and closing regulatory loopholes.

As legislative sessions continue, the direction of gaming laws will depend on regional priorities and political consensus. The coming months may bring significant adjustments to the structure of several state markets.