The overturning of PASPA seven years ago allowed the online sports betting industry to rapidly expand nationwide, but in 2025, there was stunted growth when it comes to new states.
Last year, Missouri was the lone U.S. market to pass online sports betting legislation after voters in the Show-Me State voted in favor of Amendment 2. The constitutional amendment authorizes online sports betting in Missouri and passed in last November’s election by less than 3,000 votes. Missouri launched online sports betting on Dec. 1 following a months-long delay after a lawmaker rejected a series of emergency licensing rules for retail and online sports wagering and gambling boat operations in the state. Missouri’s online sports betting rules require licensed operators to partner with a land-based casino or professional sports team for a tethered license in the state.
The Show-Me State offers two untethered licenses that don’t require a revenue-share agreement with pro sports teams or casinos.
The Missouri Gaming Commission awarded the two untethered licenses to Circa Sports and DraftKings. Other license holders that launched in the state through market access deals with pro sports teams or casinos include bet365, BetMGM, FanDuel and Fanatics.
Underdog was expected to launch operations in Missouri, but the fantasy-focused company pulled its license application subsequently and made the decision to exit America’s online sports betting market by shuttering markets on its sportsbook app in North Carolina. Underdog is no longer pursuing sports betting to focus on the prediction market space.
Missouri was the only state in 2025 to launch sports betting after passing legislation the year prior.
A handful of states fail to pass sports betting measures
In 2025, lawmakers wasted no time in introducing pieces of legislation that aimed to bring sports betting to their respective states. Lawmakers drafted bills for both chambers, seeking approval for state-sanctioned online and retail sports betting that never came.
Georgia House members made a push to bring wagering to the sports-crazed state by introducing legislation that would have put online sports betting to a voter referendum in 2026. The measure failed to be called to the House floor on crossover day in March, ending its chances for consideration. Senate members also failed to pass a resolution that aimed to amend the state constitution to authorize sports betting and retail and online casinos. The chamber also made little movement on a bill that proposed awarding up to 18 wagering licenses with a 25% tax rate on sports betting revenue.
Sports betting gets the cold shoulder in Minnesota
Minnesota emerged as a likely candidate to authorize sports betting in 2025, but the Gopher State came nowhere close after a series of bills failed to progress past the committee stage in the Senate. The state legislature adjourned in May without passing three sports betting bills that were introduced during this year’s legislative session.
State lawmakers also rejected a proposal to initiate a study on the potential effects of legalized sports betting as the sports betting industry draws “controversy.” Legislators introduced sports betting measures in 2025 that included changes from previous failed efforts. Concerns addressed in pieces of legislation proposed this year included allowing all 11 sovereign state tribes to partner with an online sports betting and DFS partner.
A missed deadline in Oklahoma
Oklahoma seemed like a strong candidate to authorize sports betting after a Senate committee passed two separate bills introduced by Rep. Ken Luttrell. The passing of the measures allowed the pieces of legislation to reach the Senate floor. A bill filed by Luttrell, House Bill 1047, proposed giving federally recognized tribes with gaming compacts in the state the exclusive right to offer sports betting. Luttrell’s other gambling measure, House Bill 1101, proposed legalizing sports betting through a voter referendum. The full Senate failed to vote on the bills before the May 8 deadline for third-reading approval.
Oklahoma Sen. Bill Coleman also made a legislative effort to bring sports betting to the state. Coleman introduced a piece of legislation that would have allowed Oklahoma tribes to offer retail sports betting at tribal casinos and online wagering on tribal lands.
The bill also had a caveat that allowed the Oklahoma City Thunder to obtain a sports wagering license and secure a market access agreement with a tribal-approved operator.
Coleman withdrew the piece of legislation before it could go before a House committee after the measure was approved on a reconsidered vote by the Senate earlier this year.
Lawmaker scraps online wagering plans in Nebraska
In April, Nebraska Sen. Eliot Boster pulled a piece of legislation amid a lack of senatorial support despite the measure passing out of the state’s General Affairs Committee with bipartisan support. The bill, LR20CA, proposed authorizing a constitutional amendment that would have placed online sports betting on the ballot for the 2026 general election.
LR20CA aimed to allow up to six online sports betting platforms in Nebraska, with operators required to land partnerships with licensed racetracks in the state. Former Nebraska football coach and politician Tom Osborne voiced his opposition to the measure, while former Nebraska Gov. Kay Orr also voiced her opposition to the bill. The Cornhusker State does not offer online sports wagering but allows residents and visitors to place bets at licensed casinos. The state also does not allow betting on in-state colleges.
Hawaii is still waiting to become a gambling destination
Hawaii Rep. Daniel Holt’s House Bill 1308 stalled in a conference committee in April over disagreements regarding the measure’s amendments. The bill proposed legalizing online sports betting in Hawaii, with up to four licenses up for grabs. An early iteration of the measure did not include tax rates or licensing fees, but an amended version imposed a 10% tax rate with prospective operators required to pay a $250,000 licensing fee.
HB 1308 also failed to garner enough support over concerns about which government agency would regulate sports betting in Hawaii. The original version of HB 1308 proposed sports betting regulation from the Department of Consumer Protection, but the department expressed viability concerns. An amended draft of the bill proposed regulation from the Department of Law Enforcement after the Department of Commerce and Consumer Affairs also voiced concerns regarding its ability to regulate online sports betting.
The six U.S. markets failed to cross the finish line for legalizing online sports betting in 2026, but a new year provides an opportunity for improved legislative efforts.
