Lobbyists Highlight Nebraska Ballot and Prediction Markets as Catalysts for Next Wave of Sports Betting Legalization

New online sports betting markets remain rare in the U.S., yet advocates see momentum building for late 2026 and 2027. Jeremy Kudon, chairman of the Sports Betting Alliance (SBA), told a VIXIO webinar that he expects “three or four states” to legalize sports betting soon. The session, covered by SBC Americas, reviewed lessons from the 2026 legislative cycle and spotlighted immediate targets.

FanDuel and DraftKings each donated around $3.5 million to support a Nebraska ballot initiative for online wagering. Organizers gathered more than 201,000 signatures, enough to reach voters in November. Kudon said he feels “confident with the polling, and I think it all will come down to whether there’s opposition.” John Pappas, state advocacy director at iDEA Growth, called the measure “an interesting barometer of public support for [online] sports betting” and predicted “significant support there.”

Kudon also flagged Alabama, where recent signals suggest the state may address sports betting and possibly a lottery in 2027. He noted similar movement in Georgia, where a sports betting bill reached the House floor for the first time this year.

Prediction Markets Shift Lawmaker Conversations

The rapid adoption of platforms such as Kalshi and Polymarket changes the discussion in states without regulated sports betting. Pappas said these products “raise the argument that this is happening right now” and place wagering “much more in the face of lawmakers.” Kudon reported legislators telling advocates “‘Kalshi’s out there, we should do this,’” a sentiment heard in both Georgia and Alabama. He added that the effect “is going to be helpful in the Nebraska ballot initiative in November, and it is part of the key to unlocking these remaining states.”

Kudon expressed hope for “a couple wins before the end of the year” but stressed the main focus must remain 2027. The visibility of legal prediction market activity undercuts arguments that no sports wagering occurs in these jurisdictions.

Revenue Needs Collide With iGaming Resistance

Online casino expansion continues to lag. Maine legalized tribal-led iGaming in January, yet faces a lawsuit. Virginia advanced bills that ultimately died in conference; Kudon labeled it “a makeable putt.” He disclosed that around 80% of SBA budget priorities now center on iGaming. Pappas expects the District of Columbia to examine online casino seriously this fall, citing council members’ concerns over the illegal market and budget shortfalls.

In New York, annual iGaming bills persist against a $12 billion state deficit. Kudon said “it’s hard to overlook the number one potential source of revenue.” Yet Pappas acknowledged the steeper challenge: unlike sports betting, iGaming “becomes a lot more competitiveness as to who gets it, who controls it, who benefits from it.” Lawmakers often conclude that doing nothing is safest, even though the activity “is not going away.”

The combined coverage leaves open how tribal compacts and existing gaming interests will ultimately shape iGaming outcomes in these jurisdictions. Operators should weigh the Nebraska vote as a concrete test of voter appetite while tracking how prediction market advertising influences 2027 calendars.

Reporting: SBC Americas

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