Senator Brian Schatz of Hawaii is poised to introduce federal legislation in 2026 aimed at regulating sports prop betting in the United States. This potential legislative move follows a surge in popularity of sports betting since the Supreme Court’s decision in 2018 that allowed states to legalize sports gambling. Journalist Pablo Torre reported on social media that Schatz is currently engaging with various stakeholders, including sports leagues, player associations, and sportsbooks, to shape the proposed regulations.
The growing sports betting market has raised concerns over the impact of prop bets, which allow customers to wager on specific in-game events rather than the overall outcome. Critics argue that these types of bets pose risks, including the potential for manipulation by individuals seeking large payouts. In a statement shared with Torre, Schatz emphasized the need for legislation to protect fans and restore public trust in sports, stating, “We’re working on legislation to stop the kind of prop betting that gives a single bad actor the ability to manipulate a specific, singular outcome for a big payout.”
Concerns Over Prop Betting and State Regulations
The rise of prop betting has not been without controversy. In November 2025, the National Football League (NFL) communicated to team officials that it was actively working with state lawmakers and regulators to limit or entirely prohibit prop bets in the league. The NFL’s proactive stance reflects growing unease over the influence of such betting practices on the integrity of the sport.
Earlier in 2025, Ohio Governor Mike DeWine urged the state’s Casino Control Commission to ban prop bets, calling for their removal from the list of permissible wagers under existing regulations. His actions underscore a broader trend among state leaders to scrutinize and potentially restrict prop betting as the industry continues to expand.
The legal landscape for sports betting varies significantly across the United States. While the Supreme Court’s ruling enabled individual states to legalize sports gambling, it did not create a uniform regulatory framework. Consequently, states have adopted differing approaches, leading to a patchwork of regulations that can complicate enforcement and oversight.
Looking Ahead: A Call for Federal Standards
Senator Schatz’s proposed legislation aims to establish a cohesive regulatory framework that would not only address prop betting but also target illegal offshore sportsbooks operating outside U.S. jurisdiction. By bringing these entities under federal oversight, Schatz believes it will bolster consumer protections and help maintain the integrity of sports competitions.
As discussions surrounding sports betting continue to evolve, the involvement of stakeholders across the board—from leagues to legislators—will be crucial in shaping a regulatory environment that balances industry growth with responsible gambling practices. The anticipated legislation could mark a significant shift in how sports betting is managed in the United States, potentially setting a precedent for future regulations in the burgeoning industry.
Public sentiment regarding sports betting remains mixed. While many fans embrace the excitement of placing wagers on games, concerns about the potential for exploitation and manipulation persist. As the industry evolves, the actions taken by lawmakers like Schatz will play a pivotal role in determining its future trajectory.
ReadWrite has reached out to Senator Brian Schatz’s office for further comments on this developing story.
