The US is currently in the midst of a protracted legal battle between its States and the legalisation of iGaming.

Delays in major markets like Virginia and Massachusetts threaten to undo years of work, while positive developments in Kentucky continue to pick up momentum.

Speaking on the iGaming Daily Podcast, SBC Media Manager Charlie Horner and SBC Americas Senior Journalist Tom Nightingale take a closer look at the varied and ever-changing developments currently impacting iGaming legalisation in the US.

The Battle for Virginia

In Virginia, attempts at legalising online casinos appear to have hit a roadblock.

New legislation did passed in both the House and Senate – in what should have been an encouraging sign for operators in the region.

But, the two chambers produced vastly different versions of the legislation and could not reconcile them before the session ended on 14 March.

This sent both bills to a re-vote, resulting in each chamber trying to substantially amend the other’s bill. These bills were eventually sent to a conference committee, where three legislators from each chamber was tasked with finding a compromise.

In the end, they ran out of time. 

The result left issues, like the allocation of tax revenue, unresolved and forced both bills to take on reenactment clauses which continue to cast doubt on the future of the iGaming industry in the region.

If Virginia wants to see a full launch of its iGaming services by 2028, they will require a full restart of the process in 2027.

But Tom says there are reasons to remain positive.

This year saw more serious discussions than in any previously – a trend iGaming operators will no doubt want to see replicated going forward.

And despite these failures, several other gambling-related bills did make it through Virginia’s legislature.

A bill explicitly classifying Daily Fantasy Sports as peer-to-peer with a 10% tax rate alongside a bill to authorise skill gaming machines under tighter regulation and the approval of a casino in Fairfax county all point towards an eventually positive outcome for sports betting in the state.

Massachusetts stalls

In Massachusetts, an online casino bill introduced in 2025 has been unanimously converted into a study bill, pushing any real legislation to the 2027-28 session.

This has been followed by a bill, which passed its first committee vote 5-0, promising to overhaul the state’s existing legal sports betting market.

It proposed:

• A ban on gambling advertising during live sports broadcasts
• Deposit limits for players
• More transparent data reporting requirements
• An explicit ban on all prop bets
• An explicit ban on all in-play wagering
• A tax rate hike from 20% to 51%

Both Tom and Charlie see this bill as extremely ambitious and unlikely to pass in its current form.

The pair continues, highlighting how this development represents a growing trend in states experiencing “second thoughts” about sports betting legislation they approved only a year before.

Rounding off the conversation, Tom raised the point that possible bans would simply push existing players towards unregulated alternatives, a very real and ongoing issue US regulators are trying to avoid.

A Complication in Kentucky

Kentucky’s current sports betting bill contains a provision that would prohibit race tracks from partnering with companies that facilitate prediction market platforms. 

Since Kentucky’s sport betting licenses are held by racetracks – all of whom operate prediction markets – this provision would effectively force those operators out of the state. 

A proposed (but not formally filed) amendment would narrow the scope to only cover prediction markets offered in Kentucky, allowing major sportsbooks to remain operational.

Tom describes this intersection between sports betting and prediction markets as “horribly complicated”, as States scramble to figure out their position in real time.