Which states could legalize online sports betting or casino next? [August 2026]

The next wave of US online gambling expansion could be starting to take shape, with several states emerging as candidates to legalize sports betting or online casino gaming.

Industry advocates believe Nebraska, Alabama and Georgia are among the states to watch for sports betting expansion through the end of 2026 and into 2027, while Virginia, Washington, D.C. and New York could emerge as candidates for legal online casino gaming.

Nebraska could be next for online sports betting

Nebraska appears to have the clearest near-term path to legal online sports betting.

A campaign seeking to put legalization before voters collected more than 201,000 signatures for a proposed constitutional amendment, with DraftKings and FanDuel reportedly contributing around $3.5 million each to the effort.

Appearing on a VIXIO webinar this month, Sports Betting Alliance Chairman Jeremy Kudon said he was confident about polling ahead of a potential ballot vote, while iDEA Growth State Advocacy Director John Pappas described Nebraska as an important test of public support for online sports betting.

Alabama could also return to the conversation in 2027, with Kudon expecting a significant push for sports betting and potentially a state lottery.

Georgia is another state to watch after a sports betting proposal reached the House floor in 2026 before ultimately stalling.

Prediction markets could accelerate legalization

The rapid growth of prediction markets could provide additional momentum in states without legal sportsbooks.

Platforms such as Kalshi and Polymarket have made sports event contracts available across much of the country, meaning residents in many states without legal online sports betting can already access products that closely resemble traditional sports wagers.

"It definitely raises the argument that this is happening right now," Pappas said. "It's very apparent that there is some form of sports wagering occurring in their state."

Kudon said lawmakers in Georgia had specifically pointed to Kalshi when discussing why the state should regulate sports betting and expects the same dynamic to influence conversations elsewhere.

Which states could legalize online casino next?

Online casino expansion remains considerably more difficult, with only a small number of states currently offering regulated iGaming.

Virginia appears to be one of the strongest candidates after online casino legislation advanced in 2026 before dying in conference. Kudon described legalization in the state as a "makeable putt."

Washington, D.C. could also consider online casino legislation when the Council reconvenes this fall, with Pappas pointing to the District's need for additional revenue and concerns about existing illegal gambling activity.

New York remains a perennial possibility. Online casino legislation has repeatedly been introduced without passing, but Kudon believes the state's significant budget deficit could eventually make the potential tax revenue difficult for lawmakers to ignore.

States to watch

• Nebraska: Potential online sports betting ballot initiative in 2026.
• Alabama: Sports betting and lottery push possible in 2027.
• Georgia: Legalization made significant legislative progress in 2026.
• Virginia: Considered a leading candidate for future online casino legalization.
• Washington, D.C.: Online casino discussions could emerge this fall.
• New York: Budget pressures could revive the state's long-running online casino debate.

Sports betting advocates remain hopeful of securing a small number of additional states before the end of 2026, but the greater focus is already shifting toward 2027.

Prediction markets could add another layer of pressure. As sports event contracts become increasingly visible in states without legal sportsbooks, lawmakers face a growing question: whether to continue leaving traditional online betting prohibited while federally regulated alternatives are already available.