This week, multiple states in the US have been active in gambling legislation, showing a dual strategy of "opening new opportunities while blocking old loopholes." Maryland, Alabama, Virginia, and South Dakota are actively promoting the expansion of the gambling market, aiming to capture new tax sources; Indiana, Florida, and Utah are intensifying efforts to combat illegal gambling and gray lottery platforms; Illinois is considering abolishing the controversial "tax per bet" policy, and for the first time, there is direct legislative intervention at the federal level targeting prediction markets. In plain terms, states are increasingly divided in their attitudes towards gambling, but all hope to achieve their goals through legislation. Want to stay updated on the latest US gambling legislation? PASA's official website continues to track for you.
Part One, Expansion: States Compete to Unlock New Markets
•Maryland: The House of Representatives has submitted iGaming companion bills (HB 1343, HB 1255), in response to the Senate, with the first hearing scheduled for March 5. As one of the largest undeveloped online casino markets on the East Coast, Maryland could fill the regulatory gap between New Jersey and Pennsylvania if the bills pass. Legislation has been repeatedly blocked over the past four years, but this year, due to the upcoming election and similar bills passed by the House in 2024, the momentum might be stronger.
•Alabama: The House of Representatives has introduced lottery bills (HB 448, HB 449), proposing to authorize the lottery from a constitutional level and establish an operating agency. Alabama is one of the five states in the US without a lottery and has the strictest gambling regulations. If the proposal passes, it could bring the lottery referendum to the November ballot, but the narrow defeat in the Senate in 2024 shows that the road ahead is still narrow.
•Virginia: Several gambling bills are rapidly advancing in the Senate, covering iGaming, daily fantasy sports, skill games, and authorization for a casino in Fairfax County (SB 118, SB 129, SB 661, SB 756). Having reached the third reading, if passed, it will move to the House of Representatives, one step closer to implementation.
•South Dakota: The Senate has passed a mobile sports betting referendum bill, allowing voters to decide whether to expand gambling from Deadwood physical casinos to statewide online. Once authorized, it could significantly lower the participation threshold and potentially leverage several times the revenue with minimal infrastructure costs.
Part Two, Crackdown: States Unite Against Illegal Gambling
•Indiana: A comprehensive law enforcement bill has been approved by the Senate committee, including provisions to ban dual-currency lottery casinos. The House has already passed this bill, and the Senate committee's approval means a statewide ban is just a step away.
•Florida: Two bills targeting illegal gambling are advancing simultaneously—the House HB 189 awaits full house voting, and the Senate SB 1580 has passed the committee. The target is the rampant arcade casinos and online illegal platforms, while also protecting the Seminole Tribe's exclusive gambling rights. Florida's size makes it a major enforcement hub in the US, and the new regulations will significantly enhance the authorities' enforcement capabilities.
•Utah: Although gambling is completely prohibited, the Senate-passed SB 38 strengthens consumer protection laws, which can be used to combat lottery platforms disguised as games. The Utah model may provide a "curve enforcement" template for other anti-gambling states.
Part Three, Tax Adjustments and Federal Intervention in Prediction Markets
•Illinois: Legislators are considering abolishing the nation's first "tax per bet" policy. State Gambling Commission data shows a 27.6 million decrease in the number of bets from September to December 2025 compared to the previous year, forcing operators to impose additional fees and set minimum bet amounts. Abolishing this tax would eliminate additional fees, potentially restoring betting activity and market competitiveness.
•Federal Level: Representative Titus has introduced a bill to prevent prediction markets from evading state gambling laws under the guise of "commodity trading." Although the legislative path is long, this marks the first direct congressional intervention in the legal gray area of prediction markets.
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This article is from "PASA-Global iGaming Leader," a gambling industry news channel: https://t.me/pasa_news
Original in-depth gambling channel: https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
