Ruddock Report: Online Casino Supporters Keep Making The Case For Legalization
SBA and iDEA Growth taking similar but not identical approaches as they continue combating the cannibalization argument
Our monthly look at the online gambling landscape includes the current legal and regulatory scene, prospective online casino and online poker states, and significant trends to watch.
Legalization needs a spark, but thus far those sparks have been about as effective as me trying to start a fire with a rock and a stick. Still, the main lobbying groups, the Sports Betting Alliance (SBA) and iDEA Growth (iDevelopment and Economic Association) are undeterred.
The two groups have consistently argued that legalizing and regulating online casinos will shift demand away from unregulated, offshore sites and into the regulated market with consumer protections, tax revenue, and robust responsible gambling measures. And now there is a new (renewed) push to get out in front of the cannibalization argument, as supporters have begun citing studies claiming legal markets complement, rather than cannibalize, land-based casinos.
SBA focuses on shifting customers onshore
The SBA, which represents DraftKings, FanDuel, BetMGM, Fanatics, and bet365, is largely focusing on bringing more bettors into the regulated market and on pushing back against what it considers bad policies, like prop betting bans, that would send customers back to the black market.
During an appearance on PBS’ State of Affairs with Steve Adubato in August, SBA President and CEO Joe Maloney put forth the group’s three core objectives:
- Expanding legal sports wagering jurisdictions
- Expanding iGaming jurisdictions
- Defending existing ones
Maloney made the point that gambling is already happening (legalization is not inventing it) and by choosing to legalize, regulate, and tax it, states can capture activity that is already occurring. Maloney’s argument echoes the 2015 comments of former Massachusetts Gaming Commission Chairman Stephen Crosby, who said that prior to legalizing casinos, Massachusetts “exported tax revenue dollars to Connecticut while importing the social ills that come with gambling.”
iDEA Growth unfinished business (in Virginia)
As one of the longest-standing pro-legalization groups, iDEA has consistently argued that inaction leaves unregulated operators in place with zero accountability, no taxes, and no player protections.
In a March 2026 column for Casino Reports, John Pappas, the state advocacy director for iDEA, noted that while Virginia didn’t get across the finish line this year, something “important” happened, and success shouldn’t be measured by outcome, “It should be measured by how far the conversation advanced.”
Pappas went on to say:
“In its first year of real engagement, iGaming legislation moved further than many expected. It received strong bipartisan support, advanced through multiple stages of the legislative process, and was the subject of more than a dozen votes across both chambers. Lawmakers asked tough questions, challenged assumptions, and, most importantly, took the time to understand the issue.
“That is how good policy is made.”
iDEA has also been promoting a Sept. 18 webinar titled “Inside the iGaming Debate: A Conversation with State Lawmakers” (register here).
The webinar will be moderated by iDEA co-founder and general counsel Jeff Ifrah and features Virginia state Sen. Jeremy S. McPike, Massachusetts state Rep. David K. Muradian, Jr., and Ohio state Rep. Brian Stewart. The topics will include “factors shaping the debate, from tax revenue potential and consumer protections to the competitive pressure created by neighboring states, while also addressing concerns around fiscal impacts and responsible gaming.”
2025-2026 online casino bills
The Ruddock Report will revise this list as new bills are introduced and reset the list at the start of the 2027 legislative cycle.
Active bills
Illinois
- HB 4797, sponsored by Rep. Edgar González Jr.
- HB 4802 (poker-only), sponsored by Rep. Edgar González Jr.
I’ve likened Illinois to the little engine that can’t, as there have been efforts to legalize online casinos in the state going back more than a decade.
There is certainly high-level support, as Gov. JB Pritzker called iCasinos an idea worth exploring last year. Pritzker’s 2026 budget said nothing about online gambling but proposed increasing taxes on existing casino table games.
More importantly, until the politically powerful VGT industry is on board, which is unlikely to happen anytime soon, legalization will remain out of reach. In January 2026, the team at Citizens met with Accel Entertainment and was told by Accel management that “there is no shot” of iGaming legalization in the state.
And recall that a March 13, 2025, legislative hearing turned into an anti-legalization struggle session, when the anti-online crowd marched in small business owners to hammer home its point.
Rep. Edgar González Jr. has filed two bills in 2026. The first resembles last year’s effort, HB 3080, and the second is an online poker-only bill that has no text and simply reads, “Amends the Illinois Gambling Act. Adds a Section concerning online poker. Contains a Section heading only.”
Also working against Illinois is the ongoing effort to repeal the recently enacted city of Chicago tax on sports betting, and the authorization of VGTs in Chicago.
Washington, D.C.
- CB 260656, sponsored by Councilmember Wendell Felder
A bill in Washington, D.C. would legalize online casino games while simultaneously prohibiting sweepstakes sites. The bill would impose a licensing fee of $2 million and set the tax rate at 25%, with an additional 2% local fee.
A hearing was held on May 4, but after four hours of robust debate, no vote was taken.
Inactive bills
Hawaii
The bills did not meet the legislative deadline and are effectively dead for the year.
Maryland
Sen. Ron Watson introduced two separate bills, one to legalize online poker and one that would legalize online casino games and bingo. SB 885 was paired with SB 761, which called for a statewide voter referendum in November 2026 for full implementation. The online poker bill sought to overcome the union and stakeholder opposition that has thwarted the state’s past online casino efforts.
A hearing on March 11 in the Budget and Taxation Committee resulted in no vote, as problem gambling and cannibalization concerns persist. The bill failed to pass the Senate before the March 23 crossover deadline and is effectively dead for the year. SB 884 was withdrawn by Watson on March 13.
Massachusetts
- HB 4431, sponsored by Rep. David Muradian
Massachusetts held two committee hearings on online casinos in 2025, but a vote was never taken. A June 23, 2025, legislative hearing (on HB 332 and SB 235) was short and sweet, with testimony and no questions from the committee. No vote was taken at the November hearing in front of the Joint Committee on Economic Development and Emerging Technologies either, but lawmakers did ask questions, with most of the questions pointing to concerns about the existing harms of sports betting.
The bill was sent to study on March 23, effectively killing it for the remainder of the year.
The recent launch of online lottery products will also make further expansion difficult, as Massachusetts Treasurer Deborah Goldberg said in December: “I, right now, am firmly against iGaming. They may not like me for that, but I gotta think about the people of Massachusetts, and that’s my top priority.”
New York
New York has frustrated online gambling supporters for more than a decade. Last year’s efforts barely got off the ground as the state was busy handing out downstate casino licenses. Now that the downstate casino licenses have been awarded, there is growing optimism that the legislature can turn its attention to online expansion, but there are still several hurdles to clear.
Those include the state’s labor unions and cannibalization concerns, and with three new casinos coming, that means thousands of new union jobs and three new land-based properties to voice concerns about online cannibalization. The three casino operators (Bally’s, Hard Rock, and Genting) are not online-focused companies, and New York Gov. Kathy Hochul hasn’t shown any signs of supporting iCasinos.
Virginia
Virginia burst into the online casino conversation last year with two bills, SB 827, sponsored by Sen. Mamie Locke, and HB 2171, sponsored by Del. Marcus Simon. The existence of the bills wasn’t a surprise, but the attention they received certainly was. Still, stakeholder opposition and union concerns caused Locke and Simon to pull their respective bills.
Simon and Locke introduced new bills in January, HB 161 and SB 118. The new bills include policies to address lottery and job concerns, as well as higher problem gambling funding.
The bills progressed to a conference committee, where they failed to win approval.
Steve is a highly respected and oft-cited voice in the legal online gambling space. Steve is an analyst and consultant and the publisher of the Straight to the Point newsletter.
