2025 Was the First Year With No New U.S. Sports Betting Laws Since PASPA — What Comes Next in 2026

No new state legalized sports betting in 2025, but sports prediction markets exploded across the country. As we look to 2026, what does the future hold for sports betting in the US?

While Missouri opened its sports betting market at the start of December, the state passed legislation to bring legal wagering last year. This meant that it was the first year since the PASPA ruling in 2018 that no state legalized sports betting.

There are now just 10 states with no legal sports betting in place. Of these, seven states introduced bills that pushed for some form of legalization, but lawmakers failed to pass any legislation.

Here are the 10 states that remain without legal sports betting and their action this year:

• Alabama: Lawmakers introduced two bills aimed at legalization, but they failed to gain traction.
• Alaska: A bill to legalize statewide online sports betting with a 20% tax rate was introduced but never received a committee hearing.
• California: There was no significant push to legalize, with the state instead clamping down on sweepstakes, DFS, and prediction markets.
• Georgia: Sports betting bills were again introduced but stalled early; there remain some pushes to bring legalization next year.
• Hawaii: The Aloha State came closer than ever to legalization, but lawmakers stalled over the tax rate and regulatory framework.
• Idaho: No sports betting bills were introduced, and the issue received no legislative discussion.
• Minnesota: Three bills in the Senate and one in the House failed to move past initial committees this year.
• South Carolina: Sports betting and constitutional amendment bills were filed, but lawmakers never seriously debated the issue during the session.
• Texas: Despite some support, lawmakers did not make any significant push for legalization.
• Utah: No sports betting legislation was introduced, and the issue remains politically dormant.

Efforts To Continue In New Year

While there has been little to no discussion about legalization in Idaho and Utah, other states have active voices pushing for a change in sports betting laws.

Hawaii may be the most likely to push through new legislation in 2026, having come close to passing House Bill 1308 this year. Lawmakers passed the legislation in the Senate, but could not agree on a tax rate in the House to pass a finalized version.

Rep. Daniel Holt remains hopeful the disagreements can be ironed out in the next legislative session. He stated, “We put our best effort forward. We got it very far this year, this deep into conference, but it seems as if we have not come to agreement on details.”

He added, “It is what it is, and we just got to work harder next year, try to answer the questions that the rest of the members and the public has and see if we can capture this tax revenue that we much need for our state.”

There are also efforts to expand sports betting in several states. Lawmakers in Nebraska aim to let residents vote on introducing online sports betting in the state. A bill to expand to full online sports betting in Wisconsin was postponed in 2025 but is expected to return for a legislative vote in 2026.

Prediction Markets Filling Void, For Now

While the above states remain without legal sports betting, sports prediction markets have experienced significant growth this year, offering users the opportunity to wager on sports in restricted areas.

So far, it has mainly been states with legal sports betting that have been opposing prediction markets. Arizona moved to revoke Underdog’s sports betting license, and other gambling regulators have been active in issuing cease-and-desist letters to operators such as Kalshi.

California could take legal action against companies in the new year, with Attorney General Rob Bonta reportedly preparing to file a lawsuit against prediction market operators.

There will undoubtedly be a host of new court battles for platforms in 2026 as the industry continues to operate in a legal gray area. DraftKings and FanDuel, the two biggest sportsbooks in the country, have lobbied intensely for remaining states to legalize sports betting, but their focus may now turn to prediction markets.

Both companies surrendered sports betting licenses in Nevada as they launched their own platforms, and this could be a growing trend next year.

DraftKings CEO Jason Robins said the spread of prediction markets could lead to legalization. He stated, “As growth in Predictions continues, this may also motivate more states to legalize online sports betting and iGaming with reasonable regulation and taxation.”