Kalshi, Polymarket, and the casino/gaming sectors are engaged in a lobbying arms race in Washington, spending millions to influence lawmakers amid increasing scrutiny of prediction markets from Congress and regulators over their classification as financial products or sports betting.
Prediction market Kalshi recorded $40 billion in World Cup wagers, sparking skepticism from sportsbooks and regulators who argue it operates as an unlicensed gambling app. Kalshi claims it's a federally regulated financial product, not subject to state gaming taxes or age restrictions, leading to over 20 federal lawsuits and a potential Supreme Court case.
Kalshi is appealing a New York federal judge's decision to deny its request to block state gambling officials from enforcing laws against its sports-related event contracts. The appeal escalates a legal battle over whether these markets are federally regulated derivatives or state-regulated gambling.
Billionaire John Arnold and his wife Laura are awarding $2.6 million in grants to researchers studying the evolving risks of online sports betting and prediction markets in the U.S., urging lawmakers to address the increased access and intensity of the booming industry.
Billionaire John Arnold is funding $2.6 million in research to study the risks of online sports betting, which has boomed since 2018. The grants will examine impacts on financial well-being, mental health, and consumer behavior, aiming to inform regulators about the evolving market.
Illegal online casinos are using fake news, AI-generated videos, and deepfakes to falsely present football stars Jude Bellingham and Bruno Fernandes as official brand partners, exploiting their identities to attract customers. This marks a new level of deception beyond previous tactics of using retired players.
Kalshi's legal fight with Massachusetts will proceed after a judge allowed state authorities to add allegations of illegal sports wagering, including targeting underage users. The CFTC supports Kalshi, asserting federal jurisdiction over prediction markets.
A Michigan judge issued a temporary restraining order against prediction market Kalshi, blocking residents from sports betting due to alleged gambling law violations. The ruling, which includes potential daily fines, marks Michigan as the second state to ban Kalshi's sports event contracts, intensifying regulatory scrutiny on prediction markets.
A legal battle is escalating between states and the federal government over who regulates sports betting, with Illinois classifying prediction markets like Kalshi as unlicensed sports wagering operators. Kalshi has sued Illinois, arguing that the CFTC holds exclusive authority over its "event contracts" and that state regulation is overly burdensome and illegal.
Kentucky has sued prediction market platforms Kalshi and Polymarket, alleging they operate illegal sports betting operations. The platforms contend their contracts fall under CFTC oversight, a stance previously supported by the Trump administration. This escalating state-federal legal battle is expected to reach the U.S. Supreme Court.
Former CFTC and SEC Chair Gary Gensler filed an amicus brief arguing Congress did not grant the CFTC authority to regulate nationwide sports wagering via the Dodd-Frank Act. He supports states' rights to regulate the sector, contrasting with the CFTC's stance.
French authorities DGCCRF and ANJ are warning bettors about proliferation of betting advice scams during the World Cup. Influencers, known as 'tipsters,' promote luxury lifestyles to lure people into paying for fake winning tips. Several legal cases are ongoing, with one influencer fined €150,000.
The 2026 FIFA World Cup is projected to generate over $3 billion in incremental handle and $10 billion in broader consumer volume uplift across sports betting and prediction platforms, potentially marking a watershed moment for the industry.
A French lawmaker proposes a bill to curb sports betting ads, including TV bans during games, restrictions on sponsorships, and influencer marketing limits, citing public health and societal costs.
Rhode Island's attorney general is suing prediction markets Kalshi and Polymarket, arguing they illegally offer sports betting. Kalshi counters that such contracts are federally regulated by the CFTC.
The CFTC, led by Commissioner Michael Selig, has signed a memorandum of understanding with the NHL to safeguard prediction markets from fraud and insider trading. This follows a similar agreement with MLB and ongoing regulatory actions by the CFTC.
Prediction markets like Kalshi and Polymarket are increasingly popular, but experts and recovering addicts warn they are as addictive as traditional gambling and lack sufficient regulation, contributing to a rise in problem gambling rates.
Entain wants no operators unlicensed in UK as sponsorsTwo clubs did not advertise such companies this seasonThe Independent Football Regulator (IFR) has been urged to stop Premier League clubs from accepting sponsorship from gambling companies unlicensed in the UK in the latest public consultation over its licensing regime.Entain, the global sports betting company that owns Ladbrokes and Coral, has submitted a response to the IFR asking for a clarification of its guidance that would prevent clubs from doing commercial deals with operators unlicensed in the UK. Continue reading...
Brendan Sorsby addressing his gambling addiction feels like an inevitable result of a sports betting boom.
Wisconsin Attorney General Josh Kaul has sued Kalshi, Polymarket, Robinhood, Crypto.com, and Coinbase in Dane County court, alleging their prediction market offerings constitute illegal gambling operations that violate state law. The complaints cite the platforms' own marketing materials as evidence, including Kalshi's Instagram ads calling it 'The First Nationwide Legal Sports Betting Platform.' The state alleges Kalshi generates over $1 billion annually from sports contracts, representing roughly 90% of its total revenue. The enforcement action follows a similar lawsuit by New York AG Letitia James and intensifies growing federal-state regulatory conflict over prediction markets.
A report by activist firm Callisto Research alleges Sportradar has relationships with over 270 illegal gambling operators, including some in Iran and Russian-occupied Crimea. The betting data company, which monitors integrity for FIFA, UEFA, MLB and NBA, saw its shares fall 23% after the report. Sportradar denies all allegations, stating it works exclusively with licensed operators and complies with sanctions.
