Ruddock Report: Legislative Year Commences, Impenetrable Force Field Ahead
The ball for online casino is rolling in several states, but how far can it realistically roll?
4 min
Our monthly look at the online gambling landscape includes the current legal and regulatory landscape, prospective online casino and online poker states, and significant trends to watch.
The calendar has flipped to 2026, and with the gambling universe hyper-focused on prediction markets, there’s little oxygen in the room for online casino discussions, both in terms of industry watchers and in legislatures.
Still, if the last few years of sweepstakes and prediction markets have taught us anything, it’s that the zeitgeist can change overnight, and the dearth of online casino states could turn into a cornucopia — although I suggest not running to Kalshi or Polymarket to bet trade on that occurring.
2026: Year of bills, but no action
Despite my pessimism, there will not be a shortage of legislation filed in 2026. In fact, I would be surprised if we have fewer than 12 states to monitor this year; there were bills filed in 12 states in 2025 (as seen below our policy map).
We’ve already seen a new bill introduced in Virginia, HB 161, by Del. Marcus Simon (bill specifics can be found in the next header), and a proposed amendment to a sweepstakes prohibition bill in Indiana (HB 1052) that would legalize and regulate online gambling — neither the sweepstakes ban bill nor the amendment was voted on by the House Public Policy Committee.
Other states to keep an eye on include:
- Arkansas
- Florida
- Illinois
- Maine
- Maryland
- Massachusetts
- New Hampshire
- New York
- Hawaii
- Wyoming
- Colorado
- Iowa
And while every state will have unique hurdles to overcome, legalization efforts across the U.S. remain stymied by a confluence of entrenched obstacles that make meaningful progress in 2026 exceedingly unlikely. This manifests in two distinct ways:
- Entrenched land-based gambling operators opposed to online gambling
- Entrenched land-based gambling operators that are OK with online gambling depending on the market structure
Add in adjacent industries like state lotteries, VGT/skill game operators, and horse racing, plus a side of problem gambling advocates and labor unions, and you have a recipe for disaster.
Illinois exemplifies bureaucratic inertia, with over a decade of failed attempts compounded by opposition from the VGT industry, land-based operators opposed to online, online-first operators differing with land-based operators like Rush Street on market access, and general anti-expansion sentiments that will continue to sideline online casinos until broader industry buy-in is achieved. Basically, no one in Illinois is on the same page, even the groups that want online casinos.
Not to be too glum, but stakeholder divisions, regulatory hurdles, fear of social harms, and political optics form an impenetrable force field. Supporters need to quell these concerns before any real breakthroughs can occur.
2025-2026 online casino bills
The Ruddock Report will revise this list as new bills are introduced.
Active bills
Virginia
- HB 161, sponsored by Del. Marcus Simon
A new bill just introduced in January by Del. Marcus Simon (who sponsored iCasino legislation in 2025) would authorize internet gaming with oversight by the Virginia Lottery Board. Operators can operate up to three skins, with a $2 million fee per platform. The tax rate is set at 15% with 5% allocated to the Problem Gambling Treatment and Support Fund and 6% percent allocated to the Internet Gaming Hold Harmless Fund until Jan. 1, 2030.
New York
- S 2614, sponsored by Sen. Joseph Addabbo, Jr.
The bill was introduced on Jan. 21, 2025, and referred to the Racing, Gaming, and Wagering Committee. It has appeared on the legislative radar a couple of times. However, the bill was overshadowed by the awarding of downstate casino licenses, which left little legislative bandwidth for iCasino in 2025. As 2026 begins, it remains stalled in committee with no further action.
Ohio
- HB 298, sponsored by House Finance Committee Chair Brian Stewart
The bill received its first hearing in the Select Committee on Gaming shortly after its introduction, but no further progress has been reported.
- SB 197, sponsored by Sen. Nathan Manning
The bill remains in the introductory phase with no reported committee action or passage, though broader discussions on regulated online casino gaming continue.
Massachusetts
- HD 2393 (now tracked as H 4431), sponsored by Rep. David Muradian
This was filed as a docket on Jan. 16, 2025, and referred to the Committee on Economic Development and Emerging Technologies on Aug. 18. This effort aims to legalize online casinos while prohibiting sweepstakes sites.
- HB 332, sponsored by Rep. Daniel Cahill
Introduced Feb. 27, 2025, with a hearing held on June 23 by the Joint Committee on Consumer Protection and Professional Licensure.
- SB 235, sponsored by Sen. Paul Feeney
Introduced Feb. 27, 2025, and discussed alongside HB 332 in the June hearing.
Illinois
- SB 1963, sponsored by Sen. Cristina Castro
Introduced Feb. 6, 2025, with first reading. The legislation proposes a 25% tax on internet gaming, which is likely a non-starter considering Illinois’ recent treatment of sportsbooks via the tax code.
- HB 3080, sponsored by Rep. Edgar González, Jr.
This is a companion bill to Sen. Castro’s Senate bill.
Illinois looks great on paper, but the problem is, (almost) no one wants to expand into online casinos except online casino companies, evidenced by nearly 1,000 witnesses testifying against online casinos at a recent hearing. March polling from Tulchin Research indicates opponents are winning the public perception battle, as respondents overwhelmingly view online gambling as a more addictive product that will lead to increased rates of problem and underage gambling.
Maine
- LD 1164, sponsored by Rep. Ambureen Rana
This was passed by the House and Senate in 2025 and sent to the desk of Gov. Janet Mills, who is expected to veto, or pocket veto, the bill now that the legislature has returned in 2026.
The legislation allows each of the state’s four tribes to offer online casino gambling: Houlton Band of Maliseet Indians, Mi’kmaq Nation, Passamaquoddy Tribe (with two reservations: Indian Township and Pleasant Point), and Penobscot Nation.
The bill calls for a $50,000 licensing fee and a 16% tax rate, with funds distributed as follows:
- 3%: Deposited in the Gambling Addiction Prevention and Treatment Fund
- 3%: Deposited in the E-9-1-1 fund
- 3%: Deposited in the Opioid Use Disorder Prevention and Treatment Fund
- 2%: Deposited in the Emergency Housing Relief Fund
- 3%: Deposited in the Maine Veterans’ Homes Stabilization Fund
Inactive bills
New Hampshire
- SB 168, sponsored by Sen. Tim Lang
Arkansas
- HB1861, sponsored by Rep. Matt Duffield
Maryland
Wyoming
- HB 162, sponsored by Rep. Bob Davis
Indiana
- HB 1432, sponsored by Rep. Ethan Manning
Hawaii
