States Advance Sweepstakes Bans While Scrutiny Grows on Prediction Markets: Gambling Bills That Mattered This Week

Sweepstakes casino bans gained momentum this week, while lawmakers ramped up pressure on prediction markets and high-risk betting products.

Lawmakers across the U.S. continued targeting unregulated gaming sectors such as sweepstakes casinos and prediction markets this week, with multiple bills advancing through committees and floor votes.

Maine moved closer to prohibiting sweepstakes casinos, while Maryland and Minnesota advanced measures to do the same. At the same time, pressure on prediction markets intensified, with new federal bills introduced and additional scrutiny emerging, while Minnesota and Tennessee advanced state-level bills.

Here are the bills that mattered this week.

Sweepstakes Casinos

Maine Advances Sweepstakes Ban Bill

The Maine House passed LD 2007, titled “An Act Regarding the Prohibition of Online Sweepstakes Games,” on March 26 with an 88-55 vote. The measure now goes to Gov. Janet Mills’ office.

The bill outlaws “sweepstakes games”, defined as any internet-based game or promotion that uses a dual-currency system and offers casino-style outcomes.

Why it Matters:

Maine is now one signature away from becoming the second state, after Indiana, to ban sweepstakes casinos in 2026.

Maryland House Passes Two Sweepstakes-Related Bills

Maryland lawmakers passed HB 295 and HB 1226 just ahead of the chamber crossover deadline.

HB 295 creates a new criminal prohibition on “interactive games” that use multiple currencies redeemable for prizes, cash, or equivalents while simulating casino-style gaming, lottery games, or sports wagering.

HB 1226, meanwhile, is an enforcement bill that gives regulators expanded authority, including the power to issue cease-and-desist orders, block payments and platform access, and pursue civil and criminal penalties.

Why it Matters:

Maryland is now the latest state where one chamber has passed a prohibition on sweepstakes casinos. Both bills are already scheduled for Senate hearings, signaling potential fast movement. The Senate passed a similar ban bill last year.

Minnesota Advances Sweepstakes Casino Ban Bill

Minnesota House committees advanced two separate sweepstakes casino ban bills, HF 4474 and HF 4410, this week. Both use similar language and target dual-currency payment systems.

HF 4474 has already been scheduled for a second committee today, and if it advances, it could move to the House floor.

Why it Matters:

The advancement of multiple bills indicates lawmakers’ appetite to ban sweepstakes casinos. Minnesota’s lack of legalized sports betting may further support momentum behind the measures.

Louisiana Racketeering Bill Could Impact Sweepstakes Operators

In Louisiana, HB 53 advanced out of committee with a unanimous vote and is scheduled for floor consideration.

The bill expands the state’s racketeering statutes to include additional gambling-related offenses. Those include “Gambling by computer” and “Gambling by electronic sweepstakes device,” which could directly affect sweepstakes casinos.

Why it Matters:

While not explicitly aimed at sweepstakes casinos, expanding racketeering exposure could significantly raise legal risk for operators if certain gambling-related activities are prosecuted under broader criminal frameworks.

Prediction Markets

Minnesota Advances Prediction Market Ban Bill

In addition to a sweepstakes casino ban, Minnesota lawmakers also advanced HF 4437, which targets prediction markets.

The bill would prohibit event contracts on sports, elections, and other real-world outcomes and extend those restrictions to payment processors and financial institutions that facilitate those transactions.

Why it Matters:

Minnesota’s approach targets both operators and the financial infrastructure that supports them, making it more comprehensive approach.

Tennessee Also Advances Prohibition Bill

Tennessee lawmakers advanced SB 1992, which would make it a Class E felony to influence the outcome of an event while holding a position in a related prediction market.

The bill’s House companion, HB 2079, has also advanced and awaits further consideration.

Why it Matters:

Tennessee is focusing its efforts on integrity risks, particularly insider trading, a topic that is receiving more attention and questions.

More Federal Bills Introduced

In addition to states, federal lawmakers have introduced multiple bills this week.

They include:

  • Preventing Real-time Exploitation and Deceptive Insider Congressional Trading Act (PREDICT Act), introduced by Congressman Adrian Smith (R-NE-03) and Congresswoman Nikki Budzinski (D-IL-13)
  • STOP Corrupt Bets Act, introduced by Rep. Jamie Raskin (MD-08) and Senator Jeff Merkley (D-OR)
  • Public Integrity in Financial Predictions Markets Act of 2026, introduced by Senators Elissa Slotkin (D-MI), Todd Young (R-IN), Adam Schiff (D-CA), and John Curtis (R-UT)

Additionally, Congressman Seth Moulton (MA-06) announced that he has implemented a policy prohibiting his staff from participating in prediction markets.

Why it Matters:

The new bills highlight growing pressure on prediction markets at the federal level and a shift toward treating them as an ethics and public integrity issue.

Responsible Gambling

New Jersey advances microbetting ban bill.

In New Jersey, a Senate committee advanced a bill that would prohibit micro bets, defined as wagers on the next play or action, with concerns around addiction and integrity risks tied to high-frequency betting.

Why it Matters:

New Jersey is among the first states to target microbetting and live betting, reflecting growing concern around fast-paced wagering formats.

Maine Passes Credit Card Gambling Ban

After the Maine Senate passed LD 2080 last week, lawmakers enacted the bill and sent it to Gov. Mills’ desk. The measure would prohibit the use of credit cards for sports betting.

Why it Matters:

If Gov. Mills signs the bill, Maine would become the latest state to prohibit credit cards for sports wagering.

New York Advances Consumer Protection Measures

New York lawmakers advanced two bills aimed at strengthening player protections. A10329 would require mobile sports betting operators to provide monthly account statements, while A09113 would standardize and expand self-exclusion processes across retail and online platforms.

Why it Matters:

These measures focus on transparency and accessibility, making it easier for users to track spending and restrict their own gambling activity.

Illinois Advances Credit Card and Loss Recovery Bills

Illinois advanced HB 4149, which would prohibit credit card use in gambling and prevent cash advances tied to betting activity. Lawmakers also moved HB 4885, which would increase the threshold for recovering gambling losses and limit third-party lawsuits.

Why it Matters:

Illinois is addressing both how gambling is funded and how losses are treated legally, combining consumer protection with liability reform.

A Louisiana Bill Would Restrict Certain Individuals from Betting

Louisiana’s SB 325, which would exclude certain individuals from participating in sports wagering, advanced from a committee this week. The bill’s provisions include excluding individuals who harass or threaten violence or harm against any person involved in a sporting event.

Why it Matters:

If enacted, Louisiana would join states such as Ohio, West Virginia, and Wyoming that ban athlete harassment.

The Takeaway

This week’s legislative activity highlights a clear focus: lawmakers are advancing bills to restrict unregulated products while protecting users.

Lawmakers are increasingly scrutinizing sweepstakes casinos and prediction markets, while responsible gambling measures are expanding through more targeted consumer protections.

The post States Advance Sweepstakes Bans While Scrutiny Grows on Prediction Markets: Gambling Bills That Mattered This Week appeared first on Gambling Insider.

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