Fairly speaking, the American gambling industry would consider the legalization in 2024 a historic failure. No state in the US expanded any form of gambling, which is the first occurrence since the repeal of the Professional and Amateur Sports Protection Act in 2018.
As 2025 approaches, a glimmer of hope emerges. Seven years after sports betting became a state issue, there are still 11 states that have not legalized it. It seems that at least one state—Utah—will never legalize it. But what about the other states? Let's take a look at the prospects of the other 10 states without legal gambling.
Alabama
In 2024, Alabama legislators attempted a major initiative—legalizing everything including lotteries, casinos, and sports betting. The state has no gambling except for electronic bingo games on Indian lands and historic horse racing at pari-mutuel facilities. The state legislature ultimately rejected the proposal and failed to pass any bills.
So far, no bills have been pre-filed for the legislative session, which will be held from February 4 to May 15. The earliest bills can be pre-filed is May 21, 2024.
According to 1819News, Democratic House Minority Leader Anthony Daniels said he looks forward to more discussions, and the Senate must take the lead. During the last session, the House passed two gambling bills. Both failed to gain support in the Senate.
Alabama legislators should wisely reconsider whether to propose a comprehensive bill. Similar proposals across the US have failed, and over time, legislators seem to realize that smaller-scale legislation is easier to advance. Alabama remains one of the five states in the US without a lottery. Given that lotteries are well-established and accepted in most US states, this seems like a good starting point.
Nevertheless, Alabama, Georgia, and South Carolina currently form a small group of southern states where gambling is illegal. Digital gambling is legal in the neighboring states of Florida and Tennessee, while retail gambling is legal in the southwestern border state of Mississippi.
Alaska
There's not much to say here. Alaska's legislature has never seriously considered legal sports betting. Operators have also not spent time lobbying in America's third smallest state. In 2022, a House bill that would have legalized digital gambling was introduced but was defeated in committee.
The state legislature will convene on January 21 and continue until May 21. The pre-filing period begins on January 10.
California
It has been 14 months since the biggest referendum failure in US history. The issue is not whether California voters will legalize marijuana in 2025—there's no chance at the moment—but whether they will vote on marijuana in 2026 or 2028.
The future of sports betting in California is determined by the state's tribes. Indian reservations are a powerful lobbying group with exclusive rights to gambling, but so far, they have not reached a consensus on the form of legal gambling.
Since the failure in 2024, it is clear that commercial operators now seem more willing to cooperate with tribes rather than oppose them. FanDuel has taken the lead in this regard, establishing a department specifically to build relationships on Indian reservations.
Given the diversity of California tribes, it is difficult to find a middle ground for gambling. Does every tribe have an opportunity to partner with large commercial operators? Perhaps a platform should be provided for a minority and share the profits? Should the state be divided into regions monopolized by a single platform? Whatever the choice or final decision, Indian reservations must achieve internal peace before moving forward with voting initiatives. This decision will be influenced by many factors, including revenue-sharing trust funds, branding, etc.
The earliest sports betting proposal could be submitted for voter approval in 2026. The question this year is whether the proposal will be formulated.
Georgia
After California and Texas, Georgia is the largest state in the US without legal sports betting. It may also be one of the most perplexing states. There is no tribal complexity to consider here, and legislators have reached consensus in the past. But politics has always been the key to delaying legalization.
Most notably, in 2021, under a reached agreement, Senate Democrats refused to vote on voter redistricting and other issues. Since then, both houses have not voted on any agreement.
What will 2025 bring? So far, no bills have been submitted (pre-filing began on November 15), and almost no one is talking about the issue.
Senator Brandon Beach may support legal gambling again. On December 4, he wrote in a column for the Atlanta Journal-Constitution: "We insist on legalizing this widely popular activity, which not only results in the loss of millions of dollars in tax revenue but also supports those unscrupulous offshore gambling sites that have no protective measures to prevent underage gambling, lack problem gambling resources, and may not even pay winners' prizes."
The session is scheduled from January 13 to April 3.
Hawaii
In recent years, Hawaii legislators have considered expanding the gambling industry, but no gambling bills have been proposed for a full house vote. Hawaii is another state without a lottery, so a full expansion of the gambling industry seems far-fetched.
In 2024, a legal sports betting bill entered the committee discussion stage, but lawmakers did not decide what legal gambling should ultimately look like. One of the bills submitted in the last session did not include key details such as tax rates or licensing fees.
For the upcoming legislative session, bills can be pre-filed as early as January 8 and must be submitted by January 23. The session will open on January 15 and continue until May 2.
Idaho
In Idaho, almost all forms of gambling are explicitly prohibited, although some gambling is allowed on tribal lands. Charitable organizations can offer bingo games and raffles under certain circumstances, and pari-mutuel betting at racetracks is also permitted. But Idaho legislators have little interest in legal sports betting, and there are no signs that this will change in the new year.
The Idaho legislative session will open on January 6 and continue until April 10. There is no pre-filing period, but Senate bills must be submitted by January 17, and House bills must be submitted by February 10 for consideration.
Minnesota
Minnesota is another tribal gambling state, and the state's tribes have traditionally not supported legal sports betting legislation. In 2024, it seemed that an agreement had been reached, but no vote was taken. This issue has always been tricky, pitting two racetracks against Indian nations. Another action in the state included charitable gambling. Democratic House Representative Zack Stephenson facilitated an agreement where the tribes would pay $40 million to charitable gambling.
Oh, at the end of the session, a state senator was arrested, causing a deadlock.
So we did it. In October, Andy Platto, executive director of the Minnesota Indian Gaming Association, said an agreement had been reached.
"We have a framework that is currently supported by all stakeholders," Platto said at the G2E seminar in October. "This is the closest we have come to achieving our goal. What I can say is that all current stakeholders support this framework, but this situation may change."
So far, no bills have been proposed, but Senator Matt Klein said he would continue to push the issue.
Klein told the Pioneer Press on December 27: "Many Minnesotans are already betting on sports events through mobile and mobile devices, and they are betting through illegal channels and offshore platforms." "This will bring this activity into the legal realm. It will provide protection for problem gambling and underage gambling."
The results of the November election resulted in a split House, which Klein believes may help push gambling legislation.
Although stakeholders may be close to or have reached an agreement, legislators still need to consider other issues. In Minnesota, religious and social organizations have strongly opposed this.
The session is scheduled from January 14 to May 19, with no pre-filing period.
Oklahoma
Like California, the future of legal sports betting in Oklahoma will be determined by the state's tribes. However, unlike California, the relationship between the state's tribes and the governor has broken down, making the process frustrating at best. Previously, the state's tribes said they would wait for Governor Kevin Stitt's term to end before moving forward. Stitt's term ends in 2026.
However, Senator David Rader dropped a bill on December 27 that would allow statewide digital gambling. The bill would modify the current gambling agreement template to allow sports betting, which could only be launched after at least four tribes signed the agreement. In the bill, Rader set a floating percentage (5-7%) for revenue sharing between the tribes and the state and allocated 88% of the state's revenue to the "Education Reform Revolving Fund."
The legislative session will be held from February 3 to May 30, and bills must be submitted by January 16.
In 2023, Stitt established a legal gambling framework, handing retail gambling operations to Indian reservations and allowing commercial operators to offer digital gambling. The tribes strongly opposed this idea because it would infringe on their federal exclusive rights. A bill including Stitt's proposal was defeated in committee during the 2024 session.
Given the current situation, any legal gambling bill in 2025 is unlikely to pass.
South Carolina
Since the launch of legal digital sports betting in March, North Carolina has generated tens of millions of dollars in monthly revenue, while South Carolina remains a gambling-free zone. Legally speaking, anyway.
Although legislators acknowledge that gambling does exist, the state does not benefit from it, but they are deadlocked on what the legal gambling law should include.
So far, South Carolina has submitted two legal gambling bills:
HJR 3353 is a constitutional amendment that will ultimately be decided by voters. The proposal would allow face-to-face pari-mutuel betting, legal sports betting, and casino games, including ball and dice gaming machines and slot machines. The proceeds from gambling expansion would be used for "the maintenance, construction, and repair of highways, roads, and bridges."
HB 3625 only allows legal sports betting and limits the number of platforms to 8. The bill would legalize digital gambling. It also requires a 12.5% tax on total gambling revenue and establishes a sports betting regulatory agency. Operators need to pay a $100,000 application fee and a $1 million licensing fee.
The bill requires that 5% of tax revenue be used for problem gambling and responsible gambling initiatives.
The legislature has spent some time discussing and researching the impact of gambling expansion, so it seems reasonable for the bill to gain support in 2025. The legislative session will be held from January 14 to May 8, and bills must be submitted by the crossover deadline of April 10.
Texas
All eyes (or rather, wishes and hopes) in the gambling industry are on Texas. The state legislature only meets in odd years, meaning that a legal gambling bill passed in the House has been shelved in the Senate for two years. A lot has changed—Miriam Adelson has invested $13 million in gambling lobbying activities to date. Her family is now also a major shareholder of the NBA's Dallas Mavericks.
But it seems that no amount of money or power can change the situation—Lieutenant Governor Dan Patrick remains firmly opposed to expanding the gambling industry. Patrick is the only person with the authority to request a Senate vote on any bill.
Democratic Senator Carol Alvarado submitted the SJR 16 proposal in November, after which gambling industry expansion will be on the agenda in some form. SJR 16 is a constitutional amendment that also involves casino gambling and destination resorts. It does define sports betting, but lacks details. The proposal does not specify a tax rate or whether digital sports betting is allowed.
Legislators may be more fortunate by introducing independent gambling bills, but even in this case, without strong Republican support, Patrick will not vote.
The Texas legislative session will be held from January 14 to June 2, and bills must be submitted by March 14.
