The expansion of online sports betting markets in the U.S. has become increasingly rare in recent years, with even fewer states opening online casinos. As 2026 comes to a close, advocates for online gambling are looking ahead to potential new markets in the coming months.
During a recent VIXIO webinar titled "The State of Play: Lessons learned from 2026 U.S. legislative sessions," industry advocates discussed their aspirations for expanding online gambling. Among the states on their radar for potential legalization is Nebraska.
Missouri was the only state to introduce a new sports betting market in 2025, launching it in December following extensive lobbying by the Sports Betting Alliance (SBA) and its affiliates. Meanwhile, in April 2026, Wisconsin approved tribal-operated sports betting, although the initiative has faced legal challenges prior to its launch.
SBA Chairman Jeremy Kudon expressed optimism that "three or four states" are on the verge of legalizing sports betting. The SBA is particularly focused on Nebraska, where they are pushing to get online sports betting on the ballot for upcoming elections after previous attempts to add online options to the state’s in-person betting framework were unsuccessful.
Kudon stated his confidence based on polling data and added, "I think it all will come down to whether there’s opposition." Reports from June indicated that FanDuel and DraftKings contributed approximately $3.5 million to support this initiative. Additionally, WarHorse Casino’s Director of Government Relations, Lynne McNally, noted that a petition to legalize online wagering had collected more than 201,000 signatures.
John Pappas, State Advocacy Director at iDEA Growth, commented on the Nebraska initiative, calling it a key measure of public support for online betting, and expressed optimism based on current sentiment.
In Alabama, Kudon noted signs indicating that discussions regarding sports betting might finally materialize. "I think you’re going to see a big play next year for sports betting and maybe the lottery for the first time," he remarked.
Another significant development is the rise of prediction market sports contracts available to residents in most states, irrespective of local sports betting laws. Apps such as Kalshi and Polymarket allow users to bet on sports events, even in states where regulation has not yet taken effect. This growth could push lawmakers to address legalization, according to Kudon and Pappas.
Pappas noted the changing landscape, saying, "It definitely raises the argument that this is happening right now… It’s very apparent that there is some form of sports wagering occurring in their state." Kudon highlighted Georgia's progress, where discussions to legalize sports betting had escalated to the House floor for the first time this year, attributing this shift partially to the impact of prediction markets.
Looking ahead, he expressed hope for additional victories before the end of 2026 but emphasized the importance of long-term focus on 2027. As for online casinos, 2026 followed the trend of states with legal online sports betting exploring this further. Maine legalized tribal-led online casino gaming in January, although that marketplace is currently facing court challenges, and Virginia’s attempts to approve online casino legislation also stalled this year.
Kudon is optimistic about Virginia’s prospects, branding it a "makeable putt," while revealing that approximately 80% of the SBA's budget focuses on iGaming initiatives. Pappas, a D.C. resident, anticipates that with the online sports betting expansion in 2024, the District will soon deliberate the possibility of online casino legalization, especially given the council’s ongoing concerns about illegal gambling and revenue generation.
The potential for increased tax revenue through iGaming remains a critical talking point among advocates, particularly in states like New York, which faces a $12 billion budget deficit. Kudon noted, "At some point, it’s hard to overlook the number one potential source of revenue."
Pappas acknowledged the challenges in convincing lawmakers to embrace iGaming, stating that unlike sports betting, casino games are already widely available in various forms across states, creating competition for the digital market. As a result, he noted that the legislative environment might lean towards inaction. "Lawmakers hear arguments from both sides and they say, ‘Well, maybe the best thing to do is nothing, and hope that this goes away.’ But the reality is it’s not going away," he concluded.
