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Jordan Bender, an analyst with Citizens, said the midterm elections produced several outcomes that could affect gaming companies and policy. The results touch Texas, Nebraska, Ohio, Georgia, Virginia and Washington, according to CDC Gaming Reports.
Texas leadership change raises new questions for gaming
Republican Lt. Gov. Dan Patrick lost his re-election bid. Democrat Vicki Goodwin won and became the first woman elected to the office. Democrat Gina Hinojosa also defeated Republican Gov. Gregg Abbott.
Bender said Patrick’s loss changes the outlook. “If Patrick had won, we would have viewed legislation of any gaming vertical as unlikely over the next four years, which was our expected outcome heading into the election,” he said.
Goodwin has supported a public vote on casinos and sports betting. “State politics will play out over the coming years, but on the surface, Goodwin has supported the broader expansion of commercial casinos and online sports betting through voter referendums,” Bender said.
Hinojosa has not commented on a potential vote on gaming. She voted against a 2023 sports betting amendment.
Legalizing gaming in Texas would require two-thirds approval in both legislative chambers. Voters would then need to pass a ballot initiative.
Bender said the state has “several influential figures involved directly or indirectly in legislative efforts.” He named Tilman Fertitta, Miriam Adelson and Patrick Dumont. Fertitta owns Fertitta Entertainment, which is in the middle of a $17.6 billion acquisition of Caesars Entertainment.
Ohio, Georgia and Nebraska
In Ohio, Democrat Amy Acton won the governor’s race. Bender said her victory may ease the road to legalizing iGaming as a source of state revenue. Citizens estimates Ohio iGaming could generate $2.9 billion in gaming revenue at maturity.
Bender still sees obstacles. “iGaming legalization would represent a major milestone for the industry, although we see an uphill battle for the Democratic governor, with the Ohio House and Senate holding Republican supermajorities,” he said.
In Georgia, newly elected Democratic Gov. Keisha Lance Bottoms said last month that she supports adding casinos to help fund education. Any effort to legalize casinos would have to go through a ballot referendum. Bottoms has not taken a position on online sports betting.
Georgia is one of the last states where the lottery is the only form of gambling. Lawmakers have tried several times to legalize brick-and-mortar casinos and online sports betting through various bills.
Earlier in 2026, four state senators introduced SR 131. The measure would have amended the state constitution, with voter approval, to create a gaming regulatory body able to issue eight gambling licenses. Those licensees could have offered sports betting. The Senate Regulated Industries and Utilities Committee killed the measure.
In Nebraska, voters did not pass Measures 440 and 441, which would have legalized online sports betting. Retail sports betting is already legal there. Voters also rejected a measure authorizing a casino license in Allen, DeKalb and Steuben counties for a $500 million casino development.
Virginia referendums and federal prediction market risk
Two Virginia referendums backed by Churchill Downs were too close to call as of Wednesday morning. They would let the company open two new historical horse racing locations, one in Pulaski and one in Amherst County. Amherst County was too close to call, while Pulaski was trailing in needed approval votes.
Churchill Downs can operate 5,000 machines in the state, and its current footprint is just short of that amount. “If passed, we would expect the company to relocate units from locations that have been impacted by new casino supply and competition,” Bender said.
He also expected the company to add units to reach its 5,000 allocation in less-competitive markets with better access across the border in North Carolina. One example is Winston-Salem, 90 miles from Pulaski.
Nationally, Bender said Democrats taking control of both the House and Senate could make prediction markets a bigger political topic. Democrats could advance legislation to ban sports- and political-event contracts.
“Any bill would need to be signed by the president, which we view as unlikely,” Bender said. “We also believe Congress lacks the ability to override a presidential veto with a two-thirds majority.”
Bender expects the U.S. Supreme Court to decide the prediction markets issue, with a potential decision sometime between the summer and 2028.
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Source: As reported by CDC Gaming Reports.
