The battle over who will control the future of betting in the world’s largest gambling jurisdiction intensified this week, as multiple states reported falling sports betting GGR. Welcome to the latest edition of Letter From America.
Mainstream Sportsbooks Take a Tumble
January’s figures show that mainstream sports betting is losing momentum across several major U.S. markets – prediction markets cannibalisation anyone?
In New Jersey, total GGR reached US$586.4 million (£434.1m), up 5.9 percent year-over-year (y-o-y), with iGaming up 16.8 percent to US$258.9 million.
But sports betting revenue fell 6.5 percent to US$114.2 million (£84.5m), with the handle down 10.4 percent to US$1.03 billion (£762.4m).
And this was not an isolated pattern.
Other states–including New York (-1.3pc), Michigan (-31pc), Maryland (-6.6pc), Mississippi (-20pc), Kansas (-25pc), Oregon (-11pc) and West Virginia (-11pc)–also reported y-o-y declines in sports betting GGR and handle..
Keystone state Pennsylvania was the exception, recording a 10.39 percent dip in handle; but 38.63 percent surge in GGR to US$71.4 million (£52.9m).
Butt Out!
Last week, 23 Democratic U.S. senators penned a pointed letter to Commodities Futures Trading Commission (CFTC) Chair Michael S. Selig, urging him to stay out of the growing number of prediction market lawsuits.
But Selig responded with a full-blown counterattack.
In a Wall Street Journal op-ed, he detailed how: “The commission is filing a friend-of-the-court brief Tuesday [February 17] supporting Crypto.com in the Ninth U.S. Circuit Court of Appeals.”
The move increased tensions between lawmakers and the CFTC, with some senators calling it a “stark reversal” on Selig’s Senate confirmation testimony, when he asserted he would “defer to the courts” on the matter.
“The CFTC will no longer sit idly by,” wrote Selig, “while overzealous state governments undermine the agency’s exclusive jurisdiction over these markets.”
Tax Switchback
As Michigan looks ready to implement a per-wager levy, one Illinois Senator is trying to roll back theirs in the wake of consecutive month-on-month declines in bet numbers.
The biggest drop to date was revealed last Thursday by the Illinois Gaming Board, with December 2025’s total bets plummeting 25.1 percent, y-o-y.
The controversial tax, introduced on July 1, 2025, mandated a US$0.25 to US$0.50 fee on each wager, which most sportsbooks passed to consumers, resulting in larger, but fewer wagers.
If passed, HB 5143 would scrap the surcharge on July 1.
Reined In
Talking of taxes. The Illinois House Gaming Committee has passed HB 4171, which aims to prevent any city in the state from implementing its own betting regulations and taxes.
The bill–introduced after Chicago went rogue and imposed a 10.25 percent tax on sportsbooks–has quietly gathered broad support across the state’s legislature. It now moves back to the House floor for its second reading.
California Cardrooms Nixed
An ongoing dispute between California’s cardrooms and the state’s Tribal forces has been settled out of court.
New rules–created by the state’s Attorney General Rob Bonta and the Bureau of Gambling Control–have already been approved, coming into force on April 1.
They effectively ban traditional blackjack, and tighten player-dealer rotations, bringing cardrooms in line with the state’s Tribal Gaming Compact, which gives exclusive rights over house-banked games to the state’s Tribes.
Cardrooms have been quick to hit back, saying the rules will devastate the industry, jobs and tax revenue.
Virginia’s Casino Bills
It’s been a dramatic week for online casino bills in the Mother of States.
Two competing Virginia bills–SB 188 and HB 161–have scraped through the first stage, but only after revotes, with lawmakers shifting sides quicker than a Kalshi price swing.
SB 188 cleared the state Senate 19-17 after initially failing 20-19 and now heads to the House, while HB 161 passed the House 67-30 after first failing 46-49 and now moves to the Senate.
Both bills aim to legalise online casinos, but vary in tax rates between 15 and 20 percent.
BetMGM Blunder
BetMGM has made a serious blunder in Massachusetts after reportedly sending promotional emails to over 3,800 underage people.
The operator blamed the error on one employee who “failed to abide by BetMGM’s internal protocols regarding promotions”.
The Massachusetts Gaming Commission called the violation “egregious” and says penalties will follow pending an adjudicatory hearing.
Vegas Sands New CEO
And finally, Las Vegas Sands has named current COO Patrick Dumont as their new CEO, replacing Robert G. Goldstein, effective March 1.
Dumont–with the company since 2010–has overseen major investments in Macau and Singapore, including the ongoing US$8 billion (£5.9bn) expansion of Marina Bay Sands.
“Under the leadership of Sheldon Adelson and Rob Goldstein, Sands has reached tremendous heights,” said Dumont.
“I welcome the opportunity to build on that legacy.”
