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Legislation Targets Sweepstakes and Prediction Markets Across US

Several states are currently considering legislation that will impact sweepstakes casinos and prediction markets as sports betting expands.
Sweeps and prediction markets under legislative fire across US.
Ian St. Clair Avatar
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Gaming Edge’s TL;DR

  • Sweepstakes platforms and prediction markets faced major legislative pressure this week, while sports betting expansion continued in select states.
  • Lawmakers moved a mix of bans, enforcement measures, and regulatory frameworks that could reshape where and how Americans bet online.

Lawmakers in multiple states advanced a wide slate of gambling bills this week, targeting sweepstakes casinos, prediction markets, and expanding sports betting frameworks.

Sweepstakes-focused measures moved forward in four states:

  • Maine: LD 2007 sent to Gov. Janet Mills
  • Louisiana: HB 53 pushing sweepstakes operators under racketeering statutes
  • Tennessee: HB 1885 advancing through committees
  • Iowa: SF 2289 progressing from a subcommittee

Prediction markets drew new restrictions and regulatory proposals in three states:

  • Kentucky: HB 904 narrowed partnership limits
  • Iowa: SF 2470 proposing a 20% tax on “event-driven contracts”
  • Tennessee: HB 2079 proposing felony penalties for participation

Meanwhile, sports betting saw forward motion in Wisconsin (AB 601 delivered to Gov. Tony Evers) and Washington (SB 6137 signed to allow certain college prop bets).

Separate enforcement bills also advanced, including Louisiana’s anti-harassment betting ban and Missouri’s debate over video lottery terminals, slots-like machines set up in businesses across the state.

Sports betting continues expansion

The combined push tightens the regulatory and legal landscape for both operators and players. Sweepstakes operators face the most immediate risk of market loss and enforcement actions as multiple states move toward outright bans or criminal enforcement, potentially reducing available unregulated options that many players currently use.

Prediction market firms confront divergent state approaches. Some legislatures are seeking to tax and regulate these products (Iowa), others to limit partnerships or criminalize participation (Kentucky, Tennessee). That split increases legal uncertainty and could slow product launches or partnerships with sportsbooks.

For bettors, consequences range from reduced product choice and access restrictions to potential legal exposure in jurisdictions that criminalize participation.

Sports betting developments show continued expansion in regulated mobile markets, but outcomes hinge on governor signoffs and tribal agreements, which affect where mobile apps and odds will soon be available.

Based on reporting by Chavdar Vasilev for Gambling Insider.

About the Author
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Ian St. Clair

Content Lead

Ian St. Clair is a lover of words, vocal or written. Naturally, that makes Ian a great communicator and leader. Ian is curious and driven, always looking to improve, and always welcomes a challenge. Ian is authentic, possesses high-level emotional intelligence, and knows just when to crack a joke. A University of Northern Colorado graduate, Ian is now an expert in the online gambling field in the US, where he's been for over five years. Ian also has over a decade of journalism experience covering college and professional athletics, as well as the symphony and theater. Ian's a lover of history, news, and bacon. Oh, and tacos.

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