The push to expand online gambling in the United States is focusing on Nebraska, Alabama and Virginia, while advocates also see potential in Washington, D.C., and New York.
Sports Betting Alliance Chairman Jeremy Kudon said he expects “three or four states” to legalize sports betting in the near future. Nebraska remains a major focus as supporters seek voter approval for online sports wagering.
Nebraska Campaign Gains Momentum
Missouri was the only state to launch a new sports betting market in 2025. Wisconsin approved tribal-run sports betting in April 2026, although its market has yet to launch and faces a legal challenge.
Nebraska supporters have collected more than 201,000 signatures for a constitutional amendment. FanDuel and DraftKings each donated about $3.5 million to the campaign.
Kudon said, “I feel confident with the polling, and I think it all will come down to whether there’s opposition.”
iDEA Growth State Advocacy Director John Pappas said, “The Nebraska ballot initiative will certainly be an interesting barometer of public support for [online] sports betting,” adding, “I do think from what I’ve seen there should be significant support there.”
Kudon also pointed to Alabama, saying, “I think you’re going to see a big play next year for sports betting and maybe the lottery for the first time.”
Prediction Markets Influence Debate
Sports prediction contracts have added another factor for states without regulated online betting. Platforms such as Kalshi and Polymarket remain accessible to residents across virtually every US state.
Pappas said, “It’s certainly going to be helpful,” because prediction markets have made sports wagering more visible to lawmakers. He added, “It’s very apparent that there is some form of sports wagering occurring in their state.”
Georgia also reached the House floor with sports betting legislation for the first time in 2026 before the proposal stalled. Kudon described that as “huge progress.”
Online Casino Expansion Remains Difficult
Maine legalized tribal-led online casino gaming in January, although its market faces a court challenge. Virginia came close to legalization before its bills died in conference.
Kudon called Virginia “a makeable putt” and said roughly 80% of the SBA’s budget priorities now focus on iGaming.
Pappas expects Washington, D.C., to revisit online casino gaming after its Council returns. “The District is desperate for revenues, and I’m hearing from a lot of the councilmembers about the illegal market and the advertising they see,” he said.
New York remains another possibility because of its $12 billion state deficit. Kudon said the state “is always in play” and added, “At some point, it’s hard to overlook the number one potential source of revenue.”
Pappas said iGaming faces disputes over control and benefits because casino-style gaming already operates in many states. He said, “That’s why I think iGaming slowed down, and I don’t think that’s going to change … 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.”
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“Sports betting, iGaming lobbyists on which states could legalize next”
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