Ruddock Report: Politics, Prediction Markets Looming Factors In Legalization Efforts
On the bright side, online poker is taking small but meaningful steps forward
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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.
Mobile sports betting may notch two victories this year, as efforts in Hawaii and Nebraska look promising (although from done deals). On the flipside, online casino efforts have gone nowhere, and unfortunately, there is little expectation that anything will change next year.
Trends to watch: Poker and politics
Trend no. 1: Poker progress
Interstate online poker is making headway in two states: Pennsylvania and Connecticut.
- Pennsylvania interstate online poker imminent: The Pennsylvania Gaming Control Board has confirmed with Pokerfuse that “operators will be ready to start connecting their Pennsylvania player pools with other states” once the final approval (the signature of Gov. Josh Shapiro) is given.
- Connecticut interstate online poker authorization bill: SB 1464, which allows Connecticut to join the Multi-State Internet Gaming Agreement (MSIGA), has passed the Connecticut General Law Committee and is on the Senate calendar.
With Pennsylvania and Connecticut advancing interstate online poker, MSIGA and online poker look more attractive. That progress contrasts sharply with the stagnation in online casino legalization.
Trend no. 2: Political headwinds in 2026
As inflation and budget deficits strain state economies, the allure of new gambling revenue streams grows. Yet, the slow pace of online casino legalization and the uncertainty around sports betting’s long-term profitability raise questions about sustainability.
That said, things are unlikely to change next year.
2026 is an election year, which means an unofficially shortened legislative calendar as lawmakers campaign, and heightened polarization as every vote or sponsored bill will be used against a candidate.
Given the Venn diagram between the groups opposed to online casino gambling (unions, religious organizations, and small businesses that host VGTs/VLTs/skill games) and mid-term voters, don’t expect too much to happen next year.
The big looming question
Will a favorable decision by the Commodity Futures Trading Commission (CFTC) force mobile sports betting states to look elsewhere for revenue?
The CFTC’s ongoing deliberations regarding regulating betting markets, particularly event contracts tied to sports and political outcomes, could force states’ hands.
A favorable CFTC ruling allowing broader regulated betting markets may flood mobile sports betting states with competition, potentially diluting tax revenue as bettors shift toward these alternative platforms.
States heavily reliant on sports betting taxes could face pressure to diversify into online casino gaming to offset potential losses. However, opposition from entrenched interests like unions, religious groups, and brick-and-mortar gaming stakeholders complicates this pivot.
Could this ruling inadvertently spark a renewed push for online casino legalization in 2026, or will political gridlock in an election year stifle progress?
2025 online casino bills
The Ruddock Report will revise this list as new bills are introduced.
LEGAL ONLINE GAMBLING ONLINE POKER-ONLY
ACTIVE LEGISLATION LEGISLATIVE EFFORTS FAILED
Active bills:
New York
- S 2614, sponsored by Sen. Joseph Addabbo Jr.
New York’s annual online gambling bill has been introduced, but with all eyes 100% focused on the downstate casino licenses expected to be awarded at the tail end of this year, there’s no room for online casinos.
Massachusetts
- HD 4084, sponsored by Rep. Daniel Cahill
- SD 2240, sponsored by Sen. Paul Feeney
- HD 2393, sponsored by Rep. David Muradian (text to come)
Massachusetts has online casino bills, but they are making about as much noise as the proverbial tree falling in a forest when no one is around.
Illinois
As I wrote in my Straight to the Point newsletter, “Two online casino bills are under consideration: SB 1963, sponsored by State Sen. Cristina Castro, and HB 3080, sponsored by State Rep. Edgar Gonzalez. … The problem is, (almost) no one wants it,” 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.
New Hampshire
- SB 168, sponsored by Sen. Tim Lang
Despite passing the committee stage, Lang “tabled” the bill due to opposition. It can be brought back later in the session, but nothing on the ground has changed that would indicate progress is happening behind the scenes.
Inactive bills:
Arkansas
- HB1861, sponsored by Rep. Matt Duffield
A late push came up short in Arkansas, as Rep. Duffield’s legislation was withdrawn and recommended for interim study by the House Judiciary Committee. The bill emerged late in the session (which seems to be the best way to pass a gambling expansion bill these days), and the stakeholder divide between Saracen Casino (pro) and Oaklawn (against) was too large to overcome.
Maryland
Legislation once again stalled in committee, and the absence of online casino revenue in the state’s proposed budget deal between the legislature and Gov. Wes Moore signals the end of 2025 efforts.
Virginia
A new contender in the online casino landscape, Virginia ran into similar concerns from unions and brick-and-mortar stakeholders that have plagued states like Maryland and New York. The proposed legislation failed to gain traction in either chamber, with bill sponsors pulling them and announcing they will reintroduce bills in 2026.
Wyoming
- HB 162, sponsored by Rep. Bob Davis
Efforts to legalize online casinos in Wyoming failed to gain the necessary support from the committee and are effectively dead. Despite a favorable report from Spectrum Gaming, Wyoming tribes voiced concerns that online gambling would cannibalize their brick-and-mortar properties.
Indiana
- HB 1432, sponsored by Rep. Ethan Manning
After running into opposition, including cannibalization concerns, Indiana’s annual effort to legalize online casino gambling (and online lottery sales) once again came up short. One glimmer of hope as we look ahead to 2026 is the passage of a bill prohibiting online lottery couriers, with Rep. Manning saying the goal is to allow the state lottery to start on equal footing when online lottery is legalized.
Hawaii
Separate versions of a mobile sports betting bill passed the House and Senate, with the details now being hashed out by a conference committee. The state’s online casino bills failed to gain any support.
The upshot
It’s time for online casino legalization advocates to return to the drawing board. We need a new plan and new talking points.
The current arguments are falling flat, and I’d posit that efforts are going in the wrong direction, as legalization seems less likely than it was a couple of years ago.
