National Legislative Roundup: Sweepstakes Face Criminal Crackdown as Prediction Markets and Sports Betting Face New State Mandates

A busy week for U.S. gambling policy sees Maine move to ban sweepstakes, Tennessee target prediction markets, and Wisconsin mobile betting head to the Governor.

By: AXL Media

Published: Apr 4, 2026, 8:27 AM EDT

Source: The information in this article was sourced from Gambling Insider

The Expanding Multi State Crackdown on Sweepstakes Casinos

The "dual currency" sweepstakes model, which has long operated in a regulatory gray area, is facing its most significant legislative challenge to date. Maine’s legislature has finalized LD 2007, sending it to Governor Janet Mills; if signed, it will mark the second such ban in 2026. Simultaneously, Louisiana has escalated the rhetoric by passing a bill that targets sweepstakes operators under racketeering statutes, framing the industry as a criminal enterprise. Similar restrictive measures are gaining momentum in Tennessee and Iowa, signaling a national trend toward the total prohibition of these platforms.

Prediction Markets: From Financial Innovation to Felony Offenses

While federal courts debate the classification of prediction markets, state lawmakers are taking decisive action to curb their growth. In a dramatic move, the Tennessee House advanced a bill that would make participation in prediction markets a felony level offense for individuals. Conversely, Iowa is exploring a divergent path by seeking to regulate and tax "event driven contracts" at a rate of 20 percent. These conflicting approaches highlight the lack of national consensus on whether these platforms are financial hedging tools or merely a new form of illegal wagering.

Wisconsin and Washington: Divergent Paths in Sports Betting Expansion

Mobile sports betting continues to expand, though under vastly different regulatory philosophies. In Wisconsin, Assembly Bill 601 has been formally delivered to Governor Tony Evers, potentially granting the state's 11 tribal nations control over a statewide mobile market. Meanwhile, Washington has broken from the national trend of banning collegiate prop bets. Governor Bob Ferguson signed legislation allowing wagers on college games, though the state will maintain a strict prohibition on bets tied to the performance of individual student athletes.