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The 2026 midterm elections have created new opportunities for gambling expansion in several states, with incoming governors and shifting legislative majorities potentially clearing the way for online casinos, sports betting and tribal gaming agreements.
Georgia, Ohio, Oklahoma, Alabama and South Carolina will have new governors in 2027 who appear more open to gambling expansion than their predecessors. Minnesota also emerged as a potential growth market after Democrats strengthened their control of state government. Some candidates made gambling reform a campaign priority, raising hopes among industry supporters.
However, voters delivered a different message at the ballot box. Nebraska residents rejected two initiatives to legalize online sports betting, while gambling expansion efforts elsewhere also faced resistance. The results suggest that industry supporters could encounter a tougher political environment as states prepare for their 2027 legislative sessions.
Voters reject gambling expansion at ballot box
Nebraska voters rejected Initiatives 440 and 441, which would have amended the state constitution and established a regulatory framework for online sports betting. Both measures failed by approximately 55%-45%, keeping mobile wagering illegal statewide.
The Nebraska Examiner reported that the defeat followed a campaign in which supporters emphasized potential property tax relief, while opponents questioned the economic benefits and highlighted gambling-related social costs.
Ronnie Jones, former chairman of the Louisiana Gaming Control Board, said the results suggest voters are becoming less receptive to the industry’s promises of economic benefits in exchange for gambling expansion. He believes the argument that gambling generates revenue for local communities may have “run its course.”
John Pappas, founder of Corridor Consulting, also said the election results showed little public appetite for further gambling expansion. He noted that Georgia and Texas, where expansion requires voter approval, could face heavily funded opposition.
Brandt Iden, vice president of government affairs at Fanatics Betting & Gaming and a former Michigan legislator, said he was disappointed by the Nebraska outcome. However, he believes the arrival of new officials creates an opportunity to reset discussions and revisit gambling policy.
Georgia’s new governor supports casinos
Democrat Keisha Lance Bottoms won Georgia’s gubernatorial race, defeating Republican Rick Jackson. She has previously supported a constitutional amendment to legalize casino gambling.
Democrats also flipped the state House for the first time since 2004, while Republicans retained control of the Senate with a narrow 29-27 majority.
Bottoms has discussed using additional gambling revenue to fund public programs, including PeachCare, Georgia’s health program for children, universal pre-K and expanded access to technical colleges and state universities. According to Jones, gambling expansion could generate up to $300 million annually.
However, any expansion would require voter approval. A constitutional amendment must first secure two-thirds support in both legislative chambers, presenting a significant challenge.
Earlier in 2026, a proposed sports betting amendment fell short in the House, receiving 98 votes in favor and 63 against. Lawmakers from both parties opposed it.
Josh Kirschner, an Atlanta-based partner at Holland & Knight, said a constitutional amendment, rather than legislation alone, is the only viable path to expansion. Building a bipartisan coalition will be essential to securing the necessary votes.
If supporters can reach that threshold, they could pursue an amendment legalizing online sports betting and destination casinos before sending the proposal to voters.
Ohio’s acton could put online casinos in budget
Democrat Amy Acton won Ohio’s gubernatorial race after supporting online casino legalization during her campaign.
However, she will face a Republican-controlled legislature. Democrats broke the GOP supermajority in the House, but Republicans will retain control of both chambers.
Pappas suggested that Acton could include online gambling in the state’s upcoming two-year budget. However, doing so could turn gambling legalization into a partisan dispute, with some Republicans potentially opposing the proposal simply because it came from a Democratic governor.
Meanwhile, a Republican-led proposal offers a narrower approach. Rep. Brian Stewart‘s iGaming bill would restrict licenses to existing casinos and racinos, keeping new online gambling opportunities within Ohio’s established gaming industry. Stewart sees 2027 as an opportunity to advance the legislation.
Oklahoma tribes could revisit gaming compacts
Oklahoma Gov. Kevin Stitt is leaving office after reaching his term limit, ending a tenure marked by disputes with the state’s Native American tribes. Much of the conflict centered on gambling compacts governing tribal gaming operations.
Republican Mike Mazzei won the election to succeed Stitt, potentially opening the door to renewed negotiations.
In April 2026, a sports betting bill that would have given tribes exclusive control of the market failed in the Senate, 27-21. Kirschner expects tribal leaders to push for fresh compact negotiations when the new administration takes office.
The bigger question is whether tribes will pursue statewide mobile sports betting. One possibility is to seek approval for wagering limited to tribal land. Alternatively, they could pursue a hub-and-spoke model similar to Florida’s arrangement with the Seminole Tribe.
That approach could allow statewide mobile betting through tribal compacts without requiring separate approval from lawmakers or voters.
Alabama’s Tuberville wants comprehensive plan
Republican Tommy Tuberville defeated Democrat Doug Jones in Alabama’s gubernatorial race and will take office in January 2027. Tuberville has indicated he will not obstruct gambling expansion efforts, but he wants lawmakers and his administration to develop a comprehensive proposal before putting anything before voters.
He expects the process to take approximately a year and has expressed support for a state lottery, provided voters approve it.
Alabama has made several attempts to expand gambling in recent years, but none has succeeded. In 2024, the House passed a gambling package with 70 votes. However, the Senate narrowed the proposal to a lottery and limited electronic gaming. The revised measure fell one vote short of the 21 needed for passage.
In 2025, Senate President Pro Tem Garlan Gudger halted Sen. Greg Albritton’s gambling bill shortly after its introduction. No expansion measure advanced during the 2026 legislative session.
Any proposed constitutional amendment would need approval from three-fifths of lawmakers in both chambers. The 2027 legislative session begins Feb. 2, while November 2028 is likely the earliest opportunity to put an expansion proposal before voters.
Minnesota democrats could revive tribal sports betting
Minnesota’s Democratic-Farmer-Labor Party (DFL) strengthened its control of state government, winning the governor’s office and both legislative chambers.
Democrat Amy Klobuchar won the gubernatorial race, while the DFL increased its Senate majority from 34-33 to 39-28. The party also gained 10 seats in the House, turning an evenly divided chamber into a 77-57 majority, according to Minnesota House election coverage.
Rep. Zack Stephenson, who has led House efforts to legalize sports betting in recent legislative sessions, is expected to become the next speaker.
A 2025 sports betting proposal introduced by Sen. Matt Klein followed an agreement between tribal groups, charitable gaming organizations and racetracks. Under the arrangement, tribes would control online sports betting licenses, while charities and racetracks would receive portions of the tax revenue.
However, the proposal stalled in committee after a 6-6 tie. Racetracks, with Republican support, pushed for a larger share of the revenue, while some DFL lawmakers raised concerns about gambling addiction.
The party’s stronger legislative majorities could make it easier to advance another proposal. However, DFL leaders will still need to secure sufficient support within their own caucus to move a bill forward.
South Carolina’s Wilson supports online betting
Republican Attorney General Alan Wilson narrowly won South Carolina’s gubernatorial race and will succeed Gov. Henry McMaster, who has repeatedly vowed never to sign legislation expanding gambling.
Wilson takes a different position on online sports betting. He supports legalization with appropriate safeguards to limit potential harm and believes people should not face criminal charges for gambling activities they already engage in on their phones.
However, his support has clear limits. Wilson signed a pledge to veto casino legislation, even if voters approve it. This effectively rules out casino expansion while leaving the door open for online sports betting.
Budget shortfalls could revive online casino debates
Ohio is not the only state where iGaming could return to the legislative agenda in 2027. Lawmakers in several states are considering online casinos as a potential source of additional tax revenue.
- Illinois: Gov. JB Pritzker has proposed online casinos as a way to generate additional tax revenue.
- Indiana: Lawmakers considered iGaming legislation in 2026, but the proposal never reached a floor vote.
- Massachusetts: A bill to legalize online casinos was referred for further study, potentially setting up another legislative push in 2027.
- New York: Sen. Joseph Addabbo continues to introduce online casino legislation but faces opposition from labor unions and casino interests.
- Virginia: Lawmakers made progress on online casino legislation in 2026, setting the stage for another test during the 2027 legislative session.
New legislatures could bring tighter rules
Outgoing lawmakers could still influence gambling policy before their successors take office. Brendan Bussmann, managing partner at B Global Advisors, said the remaining two months of the year give some officials a final opportunity to advance their priorities during lame-duck sessions.
As SBC Americas reported, Pappas expects Congress to debate gambling issues but pass little legislation. Nevertheless, federal scrutiny could influence gambling policies at the state level.
New legislatures could also introduce higher taxes, tighter advertising restrictions and stricter responsible gaming requirements, similar to recent reforms in New Jersey and Colorado.
Iden said many newly elected officials have limited experience with gambling policy, allowing the industry to highlight its economic benefits and promote consumer protection measures.
However, the Nebraska results suggest that economic arguments alone may not be enough to win public support. Even with more gambling-friendly leadership in several states, the industry will need to overcome political divisions, legislative resistance and growing voter skepticism to achieve meaningful expansion in 2027.
