Federal legislation may soon reshape the landscape of sports prop betting in the United States. Senator Brian Schatz from Hawaii has indicated plans to propose a bill in 2026 aimed at regulating this growing segment of the sports betting industry. Journalist Pablo Torre reported via X that Schatz is actively consulting with professional leagues, player associations, and sportsbooks to develop a comprehensive regulatory framework.
The senator’s proposed legislation seeks to address concerns related to illegal offshore sportsbooks, ensuring they are included in any federal regulations. Torre noted that Schatz’s discussions aim to create a safer betting environment for consumers, reflecting the rapid expansion of the sports betting market since the Supreme Court struck down a federal ban in 2018.
Growth of Sports Betting and Prop Bets
Since the legalization of sports betting varies by state, the industry has experienced significant growth, with player prop bets and microbetting emerging as popular forms of wagering. Prop bets allow customers to place wagers on specific events within a game, rather than the overall outcome. This type of betting has drawn scrutiny, as concerns about its potential for manipulation have surfaced.
In November 2025, the NFL addressed these concerns by sending a memo to team officials, stating their engagement with state lawmakers and regulators aimed at limiting or prohibiting prop bets entirely. Earlier in August 2025, Ohio Governor Mike DeWine urged the state’s Casino Control Commission to remove prop bets from the list of legal betting options, highlighting a growing push for stricter regulations.
Senator Schatz’s Commitment to Regulation
In his statement to Torre, Senator Schatz emphasized the need for legislation to prevent instances where a single individual could manipulate game outcomes for financial gain. He described the growth of sports betting as a billion-dollar industry, asserting, “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. This is about protecting fans and restoring public trust in sports.”
The potential federal oversight of sports prop betting could significantly impact how sportsbooks operate and how consumers engage with betting. As discussions continue, the outcome of Schatz’s proposed legislation may set a precedent for sports betting regulations across the United States.
ReadWrite has reached out to Senator Brian Schatz’s office for further comment on this developing issue.
