Regulation roundup: Iowa, Colorado, Tennessee, and more
All the latest regulatory developments across the US, including a focus on deposits and prediction markets
Tennessee sweepstakes bill passes House
Tennessee state legislators approved a ban on sweepstakes casinos in the state, voting in favor by a 69-17 margin.
The legislation now awaits approval by Governor Bill Lee, who has 11 days to decide whether to sign, veto, or abstain.
Last year, the Tennessee Attorney General sent cease-and-desist letters to multiple sweeps operators.
In 2025, five states banned dual-currency sweepstakes casinos: California, Connecticut, Louisiana, Montana, New Jersey, and New York.
Colorado advances bill restricting deposits and ads
The Colorado Senate has advanced a bill aimed at banning credit card deposits and imposing restrictions on advertising.
Senate Bill 26-131 was approved by a 20-14 vote following an amendment which removed an additional ban on prop bets from the legislation.
Senator Matt Ball said: “Since Colorado’s legalization of online sports betting in 2019, technology has rapidly transformed the industry, catching more and more people in the cycle of devastating gambling addiction.”
The Colorado Senate also dropped a plan to prohibit slot-style lottery games the previous week.
Prediction market ban progresses in Minnesota
A proposed ban on prediction markets in Minnesota is heading to the Senate floor after a committee advanced the legislation late last week.
The bill would ban event contracts linked to sports, politics, weather, and various other markets.
Minnesota does not have any form of regulated retail or online sports betting.
Prediction market platforms continue to insist they are regulated at the federal level, rather than constrained by state-level regulations.
Iowa takes further step towards regulating prediction markets
On Monday, April 27, Iowa’s House Ways and Means subcommittee recommended Senate File 2470, a bill seeking to license and tax prediction market platforms operating in the state.
The bill would require event contract trading platforms to pay $20m for a license issued by the Department of Revenue.
The likes of Kalshi would also be taxed 20% on respectiverevenue, and potentially face a separate 20% excise tax on the price of every individual contract.
Ohio has introduced similar legislation this week, attempting to treat prediction market platforms the same as the state’s licensed sportsbooks.