Legal Sports Betting Brief: Ohio iGaming, Iowa, Illinois

• Legislators in Ohio are looking to regulate online casinos, according to a report from WOSU.
• The fine line between NCAA oversight and sports betting laws is the focus of a college sports betting violation in Iowa.
• Illinois is hoping to create laws that ban peer-to-peer sports betting unless it is licensed by the state.

CHICAGO – The sports betting industry is facing a critical convergence of innovation, regulation, and enforcement this week. As states with legal sports betting are exploring new revenue streams through iGaming, collegiate and youth exposure to gambling is raising red flags.

Simultaneously, unconventional betting models are testing the limits of existing legal frameworks

Ohio Considered iGaming Expansion

Lawmakers are preparing to legalize gambling beyond Ohio sports betting, with legislation expected to authorize iGaming. Spearheaded by Rep. Brian Stewart, the Ohio gambling bill could significantly increase state tax revenue by regulating online poker and casino-style games.

Focused on educational funding, policymakers still remain cautious about potential disruptions to traditional brick-and-mortar casinos and racinos, which fear diminished foot traffic.

The initiative is informed by a prior state commission report showing other states saw gains in both digital and retail gaming revenues after adopting iGaming, suggesting complementary growth. With a long way to go in the process, the challenge lies in balancing technological advancement with the economic viability of established gambling venues.

NCAA Betting Violations In Iowa

The NCAA has issued one-year show-cause penalties to five former or current Iowa State football support staff members following the placement of over 6,000 prohibited sports bets. With some involving their own university’s teams, no criminal charges were filed.

But the infractions underscore serious concerns about the integrity of collegiate sports. This Iowa sports betting case stems from a broader investigation that has also drawn legal scrutiny for its use of warrantless geolocation tracking.

NCAA policies strictly prohibit any betting on NCAA-sponsored events, regardless of state law. The case reveals the disconnect between state-level legalization and institutional oversight, illustrating the urgent need for consistent internal compliance mechanisms as legal sports betting becomes more accessible nationwide.

Illinois Looks To Codify Opposition To Emerging Betting Markets

A form of peer-to-peer sports betting (like the one proposed by Dave & Buster’s last year) is under fire in Illinois, where legislation seeks to ban such activity. Although structured to avoid classification as “gambling” under current law, these models are triggering regulatory alarms due to their appeal to minors and potential ties to problem gambling.

Lawmakers in Ohio and Pennsylvania are also reacting, as these alternative platforms, including certain DFS operators and prediction markets, exploit regulatory loopholes to enter the market. Often sidestepping the burdens of state licensing, their rise poses a challenge to the taxable Illinois sports betting industry.

News tags: Brian Stewart | iGaming | Illinois | Iowa | Iowa State | NCAA | Ohio