How the 2026 Midterm Elections Will Affect US Sports Betting

The midterm elections are just two weeks away, and the sports betting industry has a lot at stake.

While the industry won’t be on the ballot in many states, the expected shifts at the state and federal levels will bring fresh faces and new approaches. Given the rise of problem gambling, athlete harassment, and illegal betting schemes, many Americans have been calling for changes. As a result, many will have the industry in mind as they head to the polls in November.

Below, we’ll explore how the high-stakes election could reshape sports betting over the next two years.

Is Federal Regulation Coming?

Democrats are currently projected to win big in November, potentially taking back both the House and Senate. 

While the party has been split on how to regulate sports betting, prominent members have led several proposals that would add federal regulations to the industry. If the party gains a majority in both chambers, those proposals could gain momentum and significantly change how the industry is managed.

Some Republicans have also supported it, especially those in non-betting states. These markets have been flooded with sports prediction markets, sweepstakes casinos, and other online platforms that are protected under federal law. As a result, those states have experienced an unexpected spike in problem gambling.

If those Republicans hold their seats, federal regulation becomes a real possibility.

Sports Markets Will Be Affected

Sportsbooks aren’t the only ones with a lot at stake this November.

While the White House has protected prediction markets, bipartisan opposition to the industry continues to grow. Some congressional committees have held hearings to press for information, but the administration’s allies have limited them.

The Supreme Court will decide if sports markets are a form of gambling, but that wouldn’t stop Democrats or new Republican leadership from taking action. They could probe the industries' finances, push the Commodity Futures Trading Commission to tighten regulations, and pass bills to tax them and set rules.

Spotlight on the Midwest

Two Midwestern state-level races in November will affect the online sports betting industry.

The first is in Nebraska, where a ballot initiative will allow residents to vote on legalizing online sports betting. WarHorse Casino led the effort to put the issue on the ballot after years of legislative deadlock. Opponents have fiercely challenged the effort, making its passage far from certain. 

The other state is Wisconsin, which passed Act 247 to pave the way for launching online sports betting. However, the new law only authorizes the Governor to negotiate with tribes to launch a market. Governor Tony Evers has led the talks but has made little progress amid continued opposition from conservatives.

Evers has hit his term limit, so he’ll leave office in January. Democrat candidate David Crawley would push forward, but Republican Tom Tiffany could pull back and continue the Republican push for a commercial market. The purple state could go either way, but it will certainly determine the future of online sports betting in Wisconsin.