2026 could be a year of significant shifts in gambling laws across the United States.
Several states are at the forefront of potential change, including Georgia, New York, and Ohio.
While gambling laws have traditionally been regulated at the state level, economic pressures and competition are driving many states to reconsider their current positions, especially when it comes to online casinos and sports betting.
Why the Shift?
Several factors are prompting states to rethink their gambling laws:
- Budget Shortfalls: Many states are facing financial challenges and see gambling as a source of much-needed tax revenue.
- Neighboring State Competition: As more states legalize online gambling, those that haven't are missing out on potential business and revenue.
- Growing Popularity: The rise of online gambling and its acceptance among younger audiences is encouraging lawmakers to modernize their laws.
New verticals like casinos, sports betting, or iCasino are pitched as “quick fix” revenue sources for education, infrastructure, or property-tax relief.
Legislators also respond to regional competition to keep residents’ spending (and tax base) from crossing the border.
States That Could Change Their Gambling Laws
Alaska: Known for its strict gambling laws, Alaska might be on the verge of change. A bill from 2025 (HB 145) suggests that the state could legalize online sports betting with up to 10 operators. If this bill gains support, it could signal a new era for gambling in the state.
Georgia: Efforts to legalize online sports betting and casinos are underway, with proposals like HR 450 and HB 686 potentially leading to a voter referendum. However, political leadership changes could impact the pace and direction of these efforts. Currently, Georgia is one of the few states that hasn't legalized sports betting or other forms of gambling, such as online casinos.
Hawaii: Despite its long-standing ban on gambling, Hawaii is considering legalizing online sports betting. A bill that was paused in 2025 could be revisited to address tax rates and licensing for operators, marking a significant policy shift.
Illinois and Indiana: Both states are considering online casino legalization, primarily driven by budgetary needs. Illinois enjoys gubernatorial support, while Indiana's new governor seems open to the idea, trying to revive past efforts.
Massachusetts and New York: These states are experiencing strong pushes for online casinos, with Massachusetts advancing bills and New York linking the potential to new downstate casino licenses.
Virginia: Delays in 2025 didn't stop Virginia from pursuing online casino legalization. A new bill supports this move, including live dealer games, which could diversify the state's gambling scene.
While there's strong momentum for new gambling laws, several challenges remain:
- Concerns about addiction risks and the impact of increased gambling on communities.
- Opposition from land-based casinos worried about losing business to online alternatives.
- The influence of midterm elections and new political leadership is shaking up current plans.
Tribal Considerations and Other Challenges
In several states like Minnesota, Oklahoma, and Wisconsin, tribal gaming compacts play an essential role in shaping gambling laws. These states must balance respect for tribal exclusivity with expanding legal gambling options, which can cause political tension.
Beyond the individual state efforts, we're seeing broader trends, such as studying the implications of gambling expansions in other states like Ohio. Arizona, which just cracked down on sweepstakes casinos, also makes the list.
As we head into 2026, the landscape of gambling in the U.S. may look drastically different.
Changes are being driven by economic factors, the need to stay competitive, and the evolving attitudes towards gambling in society. For those interested in the future of gambling laws, keeping an eye on these states could offer insights into how the industry may evolve nationwide.
