Democratic victories in the 2026 US midterm elections have created new possibilities for gambling expansion, with Texas emerging as the most closely watched market. The defeats of Republican Governor Greg Abbott and Lieutenant Governor Dan Patrick have raised expectations that lawmakers could reconsider casino development and online sports betting after years of stalled proposals.
Gina Hinojosa defeated Abbott in the gubernatorial race, while Vikki Goodwin won the lieutenant governor position after defeating Patrick. The results represent a significant political change for the state’s gambling industry, although any expansion will require legislative approval and support from voters.
Texas remains the second-most populous US state without legal sports betting and the largest without full-scale commercial casinos. Its potential has attracted considerable interest from sportsbook operators and casino developers, particularly as access to other major markets remains limited.
Citizens analyst Jordan Bender, cited by Next.io, identified Patrick’s defeat as one of the most consequential developments of election night. His opposition had prevented several gambling proposals from advancing through the Texas Senate.
Goodwin’s Victory Changes the Political Landscape
Goodwin’s election is particularly significant because the lieutenant governor exercises considerable influence over the Texas Senate. The officeholder presides over the chamber, appoints committee members and determines which committees receive proposed legislation.
Patrick had previously suggested he might consider gambling expansion if a majority of Republican senators supported it. However, his broader record showed consistent resistance to the industry, including efforts during 2026 to restrict prediction market operators.
Goodwin has supported allowing Texans to decide through public referendums whether commercial casinos and online sports betting should become legal. She has also expressed interest in a wider discussion about casino development without initially restricting proposals to particular locations or operators.
“If Patrick had won, we would have viewed legislation of any gaming vertical as unlikely over the next four years, which was our expected outcome heading into the election,” Bender wrote. “State politics will play out over the coming years, but on the surface, Goodwin has supported the broader expansion of commercial casinos and online sports betting through voter referendums.”
Hinojosa’s position is less clear. She has not outlined a specific gambling legalization framework and voted against the sports betting constitutional amendment that passed the Texas House in 2023. Her election therefore does not establish support for a particular gambling proposal.
The legislative process also presents a substantial obstacle. A constitutional amendment authorizing gambling expansion requires two-thirds approval in both chambers before voters can make the final decision. Republicans continue to control the Texas House and Senate, meaning supporters will need considerable bipartisan backing.
Lawmakers failed to advance the House’s 2023 mobile sports betting proposal through the Senate, while another attempt stalled in 2025. Goodwin’s willingness to consider public referendums creates an opportunity for renewed discussions, although it does not guarantee approval.
Several influential business figures could feature in future negotiations. Bender identified Tilman Fertitta, whose company is pursuing a $17.6 billion acquisition of Caesars Entertainment, alongside Las Vegas Sands controlling shareholder Miriam Adelson and Patrick Dumont, who own the Dallas Mavericks.
James Talarico, meanwhile, became the first Democrat to win a Texas Senate seat since 1988. In 2024, he received a $59,000 political contribution from a political action committee backed by Adelson.
Prediction Markets Add Another Dimension to the Debate
The change in Texas leadership could also affect the regulatory position of prediction markets. These platforms have operated in the state without the same restrictions imposed on licensed sports betting operators, making their activities an increasingly contentious issue.
Operators frequently reference Texas and Georgia in their advertising because neither state has legalized conventional sports betting. Some industry observers believe growing dissatisfaction with prediction markets could encourage lawmakers to reconsider sports betting legislation while pursuing stricter oversight of event-based contracts.
The issue could also attract attention at the federal level. With Democrats gaining control of Congress, Bender suggested that lawmakers might pursue legislation prohibiting sports-related and political-event contracts.
However, any proposed federal restrictions would require presidential approval. Bender considered that outcome unlikely and argued that Congress would lack the two-thirds majority necessary to override a presidential veto.
He expects the US Supreme Court to ultimately determine the legal boundaries surrounding prediction markets, with discussions pointing to a possible decision between summer 2027 and 2028.
Ohio and Georgia Present Further Expansion Opportunities
Ohio also experienced a significant political change, with Democrat Amy Acton winning the gubernatorial election. She will replace Republican Mike DeWine, whose administration oversaw the launch of the state’s online sports betting market. DeWine subsequently described signing the original gambling legislation as his “biggest mistake” and advocated restrictions on micro prop bets.
Acton has indicated support for stronger gambling regulation while also expressing interest in expanding the industry to generate additional funding for education, childcare and property tax relief.
Citizens estimates that legalizing iGaming in Ohio could produce $2.9 billion in gaming revenue once the market reaches maturity. However, Acton will face opposition from Republican supermajorities in both legislative chambers, making the proposal difficult to advance.
Georgia could also become a more important market for casino developers. Democrat Keisha Lance Bottoms won the gubernatorial election after campaigning in favor of introducing commercial casinos to help finance education.
Casino gambling remains prohibited in Georgia, where the lottery represents the only currently permitted form of gambling. Bottoms would need to secure support for a constitutional amendment and obtain approval through a statewide referendum before implementing her proposal.
Earlier in 2026, four Georgia senators introduced Resolution SR 131, which sought to establish a gaming regulatory authority and authorize eight gambling licenses. The proposal also included sports betting, but it failed to advance beyond the Senate Regulated Industries and Utilities Committee.
Bottoms has not established a position on online sports betting, leaving that part of Georgia’s potential gambling expansion uncertain.
Ballot Rejections Restrict Developments in Other States
Several other election outcomes were less favorable for gambling companies. Nebraska voters rejected Initiatives 440 and 441, which would have introduced regulated online sports betting. Approximately 54% voted against the measures. Retail sports betting remains legal in the state.
Indiana voters also rejected a proposed $500 million casino development after HB1038 left the final decision to residents of Allen, DeKalb and Steuben counties. All three counties voted against the project.
In Virginia, two ballot measures supported by Churchill Downs sought authorization for historical horse racing facilities in Pulaski and Amherst County. The Pulaski proposal failed, while the Amherst County result remained extremely close. Figures cited during the election count showed the proposal leading by just three votes.
The election results have produced different prospects across the US gambling market. Texas offers the most significant potential policy shift, while Ohio and Georgia could revisit casino and online gambling proposals. Legislative approval requirements and voter referendums will determine whether these political changes translate into new gambling markets.