Kalshi has formally demanded the removal of an advertising campaign by a watchdog that accuses the company of operating like a sportsbook while presenting itself as a federally regulated financial exchange.

A cease-and-desist letter sent May 20 to the operators of KalshiLies.com claims watchdog group FairPredicts published “false, misleading, defamatory, and commercially disparaging statements” about Kalshi and related businesses. The letter was signed by Kalshi General Counsel Richard Heaslip and attorney Maria Vouterakou.

Earlier this week, FairPredicts launched a Washington advertising push targeting the prediction-market industry. The nonprofit describes itself as a “nonpartisan market integrity watchdog” focused on regulation, transparency, and consumer protections tied to event-based trading platforms.

One ad circulating on transit placements and mobile billboards asked: “If Kalshi is not the house, why do they win when you lose?”

FairPredicts argues that Kalshi Trading LLC, an affiliated market-making firm, profits when customers lose money and effectively behaves like “the house” inside the exchange. Journalist Miranda Nazzaro reported the campaign involved a six-figure advertising purchase timed to coincide with rising congressional attention on prediction markets.

Kalshi rejected those allegations in unusually sharp terms. The company said its affiliated trading operation represents “less than 1% of overall sports trading volume on the platform” and “does not systematically participate in every trade.” The letter also stated Kalshi operates “at a negative P&L” rather than generating sportsbook-style profits from user losses.

Kalshi issues cease-and-desist against watchdog following campaign

Kalshi continues battling several states that argue sports-event contracts resemble unlicensed gambling products rather than federally protected financial instruments. This week, the company sued Rhode Island regulators.

Lawmakers have also intensified questions surrounding insider trading and market integrity. A recent Senate hearing examining sports betting and prediction markets explored concerns involving youth access, manipulation risks, and whether event contracts blur the line between investing and gambling.

Kalshi recently tightened restrictions preventing politicians, campaign staffers, athletes, and league employees from trading certain contracts tied to events where they could possess nonpublic information. 

Federal prosecutors have also brought what is believed to be the first criminal insider-trading case connected to prediction markets. A U.S. soldier accused of using confidential information to place Polymarket bets recently pleaded not guilty, adding fresh attention to regulatory gaps surrounding the industry.

FairPredicts has continued accusing Kalshi of weak anti-money-laundering safeguards, misleading advertising, and conflicts between retail traders and affiliated liquidity providers. Kalshi’s legal notice warned the campaign could expose organizers to defamation, unfair competition, and tortious-interference claims while demanding preservation of communications, funding records, and analytics data.

Featured image: FairPredicts.com

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Kalshi sued Rhode Island officials on Thursday (May 21), accusing the state of trying to block its federally regulated prediction market business through threatened gambling enforcement. The complaint landed in the U.S. District Court for the District of Rhode Island and immediately escalated a widening national fight over sports-related event contracts.

The lawsuit names Rhode Island Attorney General Peter F. Neronha, Division of State Lottery Director Mark Furcolo, and Gaming and Athletics Administrator Christina Tobiasz. Kalshi said state officials appeared ready to move against the company over contracts traded on its federally regulated exchange.

“Rhode Island’s stated intent to prohibit Kalshi from operating intrudes upon the federal framework that Congress established for regulating the trading of derivatives on federally designated exchanges,” the company said in its complaint.

Kalshi runs a prediction market platform regulated by the Commodity Futures Trading Commission, or CFTC. Customers trade contracts tied to election outcomes, economic data, weather events, and sports results. The company argues those products are federally regulated derivatives rather than illegal gambling activity under state law.

According to the complaint, tensions rose during a May 20 meeting between Kalshi representatives and Rhode Island officials. Kalshi said the attorney general’s office questioned whether the exchange complied with state gaming laws and declined to promise advance warning before enforcement action.

“When Kalshi sought assurances that the Rhode Island Attorney General did not intend to bring an enforcement action against Kalshi, the Attorney General made clear that Kalshi would not receive any advanced notice before the state filed an enforcement action against the company,” the lawsuit states.

Kalshi and Rhode Island clash over federal-state jurisdiction

Only hours after Kalshi filed its case, Neronha announced Rhode Island had separately sued Kalshi and Polymarket in state court. The attorney general argued the companies’ sports event contracts are effectively unlicensed sports betting products under Rhode Island law.

“There is no substantive difference between sports betting and ‘events contracts’ in this context; Kalshi and Polymarket know that, and we know that. 

“The problem here is that Rhode Island State law heavily regulates gambling, for good reason, and we allege that Kalshi and Polymarket are evading our laws.”

The attorney general also linked the platforms to lost state revenue and addiction concerns. “While these private companies continue to profit exponentially off hard-working people, the State’s third largest revenue stream is detrimentally affected, which means less money to fund critical parts of programs that serve Rhode Islanders every day. Further, we allege that these platforms offer those susceptible to problem gambling unfettered access, increasing the potential for the devastating effects of gambling addiction.”

Rhode Island joins several states challenging prediction markets. Wisconsin recently sued Kalshi and Robinhood over alleged illegal sports betting operations, while Kalshi also targeted Montana regulators over sports contracts. At the same time, federal judges in Arizona and other states have recently sided with Kalshi, finding the company was likely protected from state gambling enforcement because the CFTC oversees its exchange operations.

Kalshi is seeking declaratory relief along with temporary, preliminary, and permanent injunctions blocking Rhode Island officials from enforcing state gambling laws against the company.

Featured image: Kalshi / Canva

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The Commodity Futures Trading Commission (CFTC) and the National Hockey League have signed a memorandum of understanding designed to tighten coordination around professional hockey integrity and the fast-growing market for sports event contracts tied to NHL games.

The agreement creates a formal structure for information sharing and consultation between the federal derivatives regulator and the league. Both sides said the arrangement is meant to support confidence in NHL competition while also helping regulators monitor trading activity connected to hockey-related event contracts listed on CFTC-regulated exchanges.

The CFTC announced the agreement in a press release and said the deal establishes designated points of contact for handling integrity concerns involving professional hockey and prediction-style markets connected to the sport.

“I’m proud the CFTC and NHL have officially signed an MOU, furthering the agency’s commitment to improve data sharing between professional sports leagues and the Commission,” said CFTC Chairman Michael S. Selig. 

“This agreement is another step toward safeguarding the integrity of sports and protecting market participants in prediction markets from insider trading, fraud, and other abuses. I applaud NHL Commissioner Bettman for collaborating with the CFTC and taking a leading role in protecting the integrity of professional hockey in our markets.”

CFTC NHL partnership comes amid calls for greater prediction market oversight

The deal arrives as sports prediction markets have drawn heavier political and regulatory attention. Companies including Kalshi and Polymarket have pushed deeper into sports-related event contracts, triggering debate over whether those offerings resemble regulated derivatives products or traditional sports wagering.

Recent disputes involving tribal gaming sovereignty and prediction market expansion have added pressure on regulators to clarify how these contracts should operate. The CFTC has also faced calls from lawmakers to establish stronger oversight standards after several major sports leagues publicly backed better gambling integrity protections following betting controversies tied to professional athletics.

The NHL has already moved closer to prediction market operators in recent months. Earlier this year, the Chicago Blackhawks announced a partnership connected to Kalshi.

Under the memorandum, representatives from both organizations may meet whenever issues arise that could affect “the integrity of professional hockey and the event contract markets related thereto.” The agreement also calls for timely responses to information requests while limiting unnecessary administrative burdens.

The document contains detailed confidentiality rules governing any material exchanged between the organizations. Information provided by the NHL may only be used by the CFTC in connection with its responsibilities under the Commodity Exchange Act, while the NHL can only use CFTC information for league integrity purposes.

“Integrity has always been and remains paramount to the NHL and fundamental to the trust our fans and partners place in our game,” said NHL Commissioner Gary Bettman. “Our agreement with the CFTC enhances the comprehensive integrity monitoring systems already in place and strengthens our ability to identify, deter, and address potential risks. This MOU reflects a shared commitment to transparency, oversight and protecting the integrity of the game.”

Featured image: CFTC / Canva

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A San Francisco Superior Court judge has temporarily stopped California Attorney General Rob Bonta’s proposed cardroom regulations from taking effect, handing an early victory to cardroom operators fighting the state over blackjack-style games and other popular offerings.

Judge Richard Darwin issued a preliminary injunction that freezes enforcement while the California Gaming Association’s lawsuit continues. The association said the court determined the Bureau of Gambling Control likely exceeded its authority by approving rules that could effectively outlaw games cardrooms have offered for years.

According to the association, the judge also found “clear and convincing evidence” that enforcing the regulations would cause serious and irreversible damage to both gambling businesses and the cities that rely on their tax revenue.

The legal fight has become one of the biggest gambling disputes in California, where tribal casinos and licensed cardrooms have spent years battling over the limits of state gaming law. Tribal groups backed the proposed regulations and argued they were necessary to rein in games they believe illegally resemble casino-style blackjack.

Attorney General Bonta’s California cardroom rules blocked as economic concerns take center stage

Cardroom operators argue the proposed rules would dramatically reshape the industry by removing blackjack-style games and placing tighter restrictions on longstanding table games already monitored by state regulators. The California Gaming Association said the attorney general’s own economic review projected losses exceeding half of statewide cardroom revenue if the regulations were enforced.

Industry representatives say those losses could trigger widespread layoffs while reducing local funding tied to gaming taxes. Cities across California depend on cardroom revenue to support police departments, fire services, parks, and youth programs.

This has unfolded alongside separate legal battles involving California tribes seeking greater authority to challenge cardroom operations in court. Recent court rulings blocked some tribal attempts to directly sue cardrooms.

Gaming law expert I. Nelson Rose previously told ReadWrite that California’s crackdown on blackjack-style games could carry major consequences for the industry because those games generate significant customer traffic and revenue for cardrooms. Operators say eliminating them would threaten businesses that have legally operated under multiple administrations for decades.

The California Gaming Association said labor groups, local officials, and city governments repeatedly warned regulators about the economic fallout before the rules were finalized. The organization also said more than 1,700 public comments opposing the changes were submitted during the rulemaking process.

Kyle Kirkland, president of the California Gaming Association, welcomed the ruling in a statement following the decision.

“Today’s ruling validates what we have said all along: Attorney General Bonta and the Bureau of Gambling Control exceeded their authority by attempting to rewrite California gaming law. These regulations were driven by pressure from powerful tribal gaming interests that have long sought to eliminate lawful competition from California’s cardrooms,” Kirkland said.

“Cardrooms have lawfully operated the games targeted by these regulations for decades. Our games support thousands of middle-class jobs and generate critical revenue for communities across California. Instead of protecting those communities, Attorney General Bonta chose to advance regulations that threaten local economies, public safety funding, and the livelihoods of thousands of Californians,” he added.

Kirkland also called the ruling “an important step towards preventing severe and unnecessary harm to cities, workers, and small businesses that depend on the cardroom industry.”

Featured image: Canva / California State Assembly

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Three Guam residents tied to a charitable bingo operation were sentenced in federal court after prosecutors said they siphoned more than $10 million away from children needing medical treatment and used the money for themselves.

The convictions stem from the Guam Shrine Club’s Hafa Adai Bingo parlor in Tamuning, which authorities said operated for years while falsely presenting itself as a fundraiser supporting travel for children seeking care at Shriners Hospital for Children in Hawaii.

Jose Arthur “Art” Chan Jr., 77, received a 60-month prison sentence on May 12. His wife, Christine Chan, 64, was sentenced the same day to 70 months behind bars. Michael Marasigan, 54, was sentenced in absentia on May 18 to 262 months in prison after authorities said he fled before sentencing.

Federal prosecutors said Marasigan traveled to South Korea while awaiting sentencing, prompting the FBI to continue searching for him as a fugitive. Court records showed he failed to appear for scheduled proceedings before the judge imposed the sentence without him present.

A federal jury convicted all three defendants in May 2025 on charges including conspiracy to operate an illegal gambling business, conspiracy to commit wire fraud and money laundering conspiracy. Christine Chan and Marasigan were also found guilty on additional money laundering counts.

Officials detail years-long scheme bingo fraud in Guam

According to prosecutors, the operation ran from March 2015 through the end of 2021 and generated roughly $34 million in gross bingo revenue. Investigators said more than $10.7 million in net proceeds was diverted for personal spending instead of charitable work connected to the Shriners organization.

Evidence presented during trial showed the bingo hall promoted itself as helping pay airfare and travel costs for children and guardians traveling from Guam to Hawaii for medical treatment. Prosecutors argued that players and donors believed their spending supported sick children when most of the money never reached that purpose.

Federal records showed only about $140,378 in bingo proceeds from 2015 through 2020 went toward payments tied to the charitable mission. Prosecutors said none of the proceeds collected in 2021 supported the organization’s stated cause.

The court also ordered millions of dollars in restitution and forfeiture. Marasigan alone was ordered to forfeit more than $5.8 million.

“These defendants traded on the reputation of the Shriners Children’s healthcare system to perpetrate their multi-million-dollar fraud,” U.S. Attorney Shawn N. Anderson said in a statement. “It was an unconscionable means to personal gain. We will make every effort to enforce restitution and ensure that Marasigan and the Chans spend every day of their sentences in federal prison.”

Other defendants who cooperated with prosecutors, including Juanita Capulong, Minda San Nicolas, Alfredo Leon Guerrero and Won Sun Min, received probationary or supervised release sentences after pleading guilty.

Featured image: Screenshot via KUAM News

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The Lumbee Tribe of North Carolina has rolled out a new website aimed at helping tribal citizens understand a proposed gaming and economic development amendment before a June 23 special election. The site, LumbeesChoose.com, is now being promoted across the tribe’s official communication channels as leaders push to increase awareness ahead of the vote.

Tribal officials say the website was created to give enrolled members a clearer picture of what the amendment would do and how it could shape future tribal business and government operations. Visitors can review explanations of the proposal, election details, and information tied to possible future gaming projects.

Opportunities the gaming amendment would create for the Lumbee Tribe as new website rolled out

According to information posted on the website, the amendment would establish a governmental structure to oversee gaming operations and economic development projects if tribal citizens eventually approve gaming initiatives in the future. The site says the framework is intended to create “checks and balances” while adding accountability measures connected to any future gaming enterprise.

It also explains how the tribe’s federal recognition changed its legal standing. After decades of lobbying and advocacy, the Lumbee Tribe secured full federal recognition in 2025, which opened access to opportunities available under the Indian Gaming Regulatory Act, including the possibility of pursuing tribal gaming projects under federal law.

The launch of the information campaign arrives as discussion continues around possible casino development in southeastern North Carolina. We previously noted that tribal leaders have explored gaming-related economic opportunities since recognition became official. One proposal reportedly centers on land near Interstate 95 in Robeson County, an area viewed as attractive because of heavy tourism traffic and regional travel access. 

The site reports: “South Carolina is considering allowing commercial casinos along I-95, including in Dillon County near South of the Border. If that happens, a competing casino could be built less than 10 miles from the proposed Lumbee site, reducing the Tribe’s economic opportunity and competitive advantage.”

ReadWrite also reported that the Lumbee Tribal Council overwhelmingly approved placing the amendment before voters earlier this year. Tribal leadership framed the move as a way to let citizens decide whether the tribe should move toward a formal governance system tied to future gaming activity.

Another report stated that the Lumbee Tribe could become a major new force in North Carolina gaming if voters approve the amendment and development plans continue moving forward. The issue has gained attention beyond tribal communities because North Carolina lawmakers have debated broader casino expansion proposals for several years, though multiple efforts stalled in the legislature.

With federal recognition now secured, the Lumbee Tribe has new authority to independently explore gaming opportunities under federal regulations. Details tied to the proposed Lumbee Dark Water Resort, a large-scale development vision that combines gaming, hospitality, entertainment, and cultural attractions, have already been outlined.

According to materials published on the site, the master plan spans more than 200 acres and includes multiple hotels, a waterpark, convention and entertainment facilities, retail space, golf courses, museums, and gaming venues. Project descriptions say developers intend to balance tourism and economic growth with environmental considerations through green space preservation, indigenous landscaping, solar energy integration, and community-focused design. Plans highlighted on the site also reference a future 10,000- to 15,000-seat convention and entertainment center, a high-rise leisure hotel, family-oriented attractions, and expanded gaming areas tied to long-term economic development goals.

The tribe’s official website currently directs visitors to LumbeesChoose.com through prominent banners urging members to “Learn about June 23 Vote.”

Tribal leaders continue encouraging citizens to study the amendment closely before ballots are cast in the special election later this summer.

Featured image: Canva

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Pennsylvania gaming regulators handed down $180,000 in fines Wednesday during the Gaming Control Board’s monthly public meeting, targeting several operators over underage gambling access, licensing problems and failures tied to online account protections.

Greenwood Gaming and Entertainment received the largest combined penalties after regulators approved two separate $40,000 fines against the company. State officials said one case involved three incidents in which underage patrons gained access to casino gaming floors and were able to gamble on slot machines or table games.

The second Greenwood penalty centered on the company’s betParx online platform. According to the board, five employees who did not hold the proper licenses were allowed to access personal identifying information connected to iGaming account holders.

Wind Creek Bethlehem, LLC was separately fined $50,000 after regulators said the casino operator failed to properly follow Know Your Customer procedures. The board said those shortcomings eventually contributed to fraudulent withdrawals exceeding $92,000 from online gambling accounts.

Another $50,000 penalty was issued against YFS Sub, LLC, a subsidiary of Yahoo Fantasy Sports. Regulators said the company failed to notify the state and obtain approval related to a change in control involving its gaming license.

The penalties were finalized through consent agreements presented during the Harrisburg meeting by the board’s Office of Enforcement Counsel.

Pennsylvania gaming board expands involuntary exclusion lists as it issues fines

The Gaming Control Board also voted to add eight more people to Pennsylvania’s involuntary exclusion lists, continuing a wider enforcement trend the agency has stressed in recent months. Anyone placed on the lists is barred from gambling at the state’s casinos, using regulated online betting sites or participating in gambling activities at video gaming terminal locations.

State regulators have increasingly used the exclusion lists in cases involving extreme or repeated conduct inside casinos. Earlier enforcement actions highlighted by the board included incidents involving people leaving children unattended at casinos while gambling and individuals accused of disruptive or abusive behavior tied to gaming activity.

With the latest additions, the number of people on Pennsylvania’s involuntary exclusion lists has climbed to 1,463, according to the board. The cases were reviewed by both the Office of Chief Counsel and the Office of Enforcement Counsel.

The Pennsylvania Gaming Control Board oversees the state’s casinos, online gaming platforms, sports betting operations, fantasy sports contests and video gaming terminals located at approved truck stops. Pennsylvania’s gaming market now includes 18 casinos across several categories, including racetrack casinos, stand-alone properties, resort casinos and mini-casinos.

The board said gaming operations generated nearly $3 billion in taxes and fees for the state during 2026. Regulators also said copies of the approved consent agreements are available through the agency’s Office of Communications ahead of the board’s next public meeting scheduled for June 17 in Harrisburg.

Featured image: Canva

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Iowa Governor Kim Reynolds has approved a wide-ranging gambling bill that strengthens enforcement against unlicensed sweepstakes operators while reshaping how the state handles tax withholding on gambling winnings.

Reynolds signed Senate File 2289 on May 15, giving the Iowa Racing and Gaming Commission expanded authority to pursue unauthorized betting and sweepstakes businesses operating in the state. It also updates financial reporting rules tied to gambling payouts and raises reimbursement limits for commission members.

In a letter sent to Secretary of State Paul Pate, Reynolds wrote, “I hereby transmit: Senate File 2289, an Act relating to matters under the purview of the department of inspections, appeals, and licensing, and including effective date provisions.” She added, “The above Senate File is hereby approved on this date.”

The legislation allows state regulators to issue enforcement actions against companies or individuals offering gambling products in Iowa without proper licensing approval. This applies to sports wagering, fantasy sports contests, pari-mutuel wagering, advance deposit wagering, and sweepstakes-style gambling platforms.

One section of the legislation states the commission may take action “including but not limited to issuing cease and desist orders and obtaining injunctive relief against a person offering games of chance, gambling, sports wagering, or illegal sweepstakes in this state without holding an appropriate license issued by the commission or otherwise being specifically authorized by law.”

Iowa anti-sweepstakes bill comes amid national scrutiny

The bill follows growing debate over online sweepstakes casinos and other gambling products operating outside traditional regulatory systems. We previously reported that Iowa lawmakers advanced the proposal after concerns that unlicensed operators were reaching consumers without following the same standards required of state-approved sportsbooks and casinos.

Lawmakers in other states have also started taking similar action. In Maine, legislators recently approved a bill banning online sweepstakes casinos entirely.

Iowa’s new law also increases penalties tied to unlawful sports wagering activity. People convicted of certain betting violations may now face permanent exclusion from sports wagering, advance deposit sports wagering, excursion gambling boats, and licensed gambling facilities overseen by the commission.

Another section rewrites Iowa’s gambling withholding requirements by removing older fixed-dollar thresholds and connecting withholding obligations directly to federal reporting standards.

Under the updated language, state income tax “shall be withheld” on certain gambling winnings when the winnings are “in an amount sufficient to require that an information return be filed pursuant to 26 U.S.C. §6041.”

A fiscal analysis released May 20 projected the changes would remain revenue neutral overall, though some tax collections could arrive later than before. Analysts estimated Iowa’s General Fund may temporarily lose $7.8 million during fiscal year 2027 before that money shifts into fiscal year 2028 collections.

Featured image: Governor Kim Reynolds via Facebook

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A Nevada teenager has filed a federal lawsuit against Roblox, Epic Games, Microsoft and Mojang, accusing the companies of building video games that intentionally keep children playing and spending money through psychologically manipulative systems.

The case was filed in the U.S. District Court for the Eastern District of Pennsylvania by a minor identified as K.R., acting through her parent and guardian, Krystle Statler. The complaint focuses on Roblox, Fortnite and Minecraft, arguing the companies relied on behavioral reinforcement techniques commonly associated with gambling and addiction research.

“Rewards act as positive reinforcement, encouraging gamers to keep playing,” the complaint states, alleging that in-game rewards trigger dopamine releases in the brain that reinforce repeated behavior.

Attorneys for the teenager argue the games use progression loops, social competition, unpredictable rewards and constant engagement prompts to encourage long sessions and repeated microtransaction purchases. The lawsuit claims the systems were specifically designed to maximize profits from younger players.

According to the filing, K.R. started gaming at around six years old and later spent large amounts of time using phones, consoles and computers to play Minecraft, Roblox, Fortnite and similar titles. The complaint says her gaming behavior became compulsive during her teenage years.

The lawsuit alleges she experienced anxiety, depression, suicidal ideation, withdrawal symptoms, digestive problems, social isolation and worsening school performance. It also claims she required therapy and struggled with normal daily activities because of excessive gaming.

Claims target Roblox and addictive gaming design practices

The lawsuit arrives as regulators and courts continue examining whether some gaming systems resemble online gambling. The complaint repeatedly compares gaming reward mechanics with gambling-style reinforcement systems and cites studies alleging that games can trigger dopamine responses “similar in magnitude to that experienced by substance abuse or gambling.”

The filing also points to the growing overlap between gaming platforms and gambling-style activity involving minors. Earlier reporting from ReadWrite detailed concerns that illegal online casinos were using compromised Roblox accounts to attract children to gambling sites. Separate reports also revealed Minecraft players creating virtual slot machines inside multiplayer servers, raising additional concerns about gambling mechanics appearing inside youth-oriented games.

The case also follows other legal fights over loot boxes and randomized rewards. We previously reported on a federal class-action lawsuit against Valve that argued loot boxes functioned as illegal gambling products because players spend money on randomized digital items with uncertain value.

K.R.’s lawsuit argues companies failed to provide meaningful safeguards despite knowing children made up a substantial share of their player bases. It specifically accuses Microsoft and Mojang of promoting Minecraft as educational and child-friendly while failing to implement stronger parental controls, age-verification measures and protections against excessive playtime.

The teenager is seeking damages for alleged emotional, neurological, physical and economic harm. The lawsuit requests a jury trial and claims damages exceeding $75,000.

Featured image: Canva

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A Senate panel spent hours Wednesday (May 20) hearing whether America’s fast-growing sports betting industry is outpacing the rules meant to control it. The Commerce, Science, and Transportation Committee’s hearing, titled “No Sure Bets: Protecting Sports Integrity in America,” brought together regulators, gaming executives, integrity specialists, and lawmakers who disagreed sharply over how prediction markets should be treated under federal law.

The session took place inside the Russell Senate Office Building and was led by Sen. Marsha Blackburn through the Subcommittee on Consumer Protection, Technology, and Data Privacy. Much of the discussion centered on prediction-market platforms that now offer contracts tied to sporting events nationwide under commodities regulations instead of traditional state gaming laws.

Several senators questioned whether those companies are effectively acting like sportsbooks while avoiding many of the restrictions imposed on licensed gambling operators.

AGA warns prediction markets are ‘national sportsbooks’ during Senate hearing

Bill Miller, president and chief executive officer of the American Gaming Association, delivered some of the hearing’s strongest criticism toward prediction-market operators. He argued that companies offering sports-event contracts have crossed into sports wagering while sidestepping state oversight systems built after the Supreme Court struck down PASPA in 2018.

During his testimony, Miller stated that “so-called prediction market platforms jeopardize the integrity of sports” and warned that these companies are effectively operating national sportsbooks without complying with the same oversight standards imposed on licensed gaming operators.

Miller told lawmakers the Commodity Futures Trading Commission was never designed to supervise betting on sporting events. He said Congress created the agency to oversee economically important commodities markets, not “Monday Night Football” or college basketball tournaments.

He also pointed to legal arguments previously made by Kalshi, acknowledging that Congress did not intend derivative exchanges to become sports betting marketplaces. At the same time, he noted that the company has continued scaling offerings connected to major events, including the Super Bowl and March Madness.

According to Miller, sports contracts now make up most trading activity on some prediction platforms. He warned senators that those businesses bypass rules involving taxation, responsible gaming protections, geolocation requirements, anti-money laundering standards, and integrity monitoring systems that state-regulated sportsbooks must follow.

Miller also pointed out age concerns. In many states, traditional sportsbooks require customers to be at least 21 years old, while some prediction-market platforms permit participation beginning at 18.

Senate hearing debates whether prediction markets constitute gambling

Former House Financial Services Committee Chairman Patrick McHenry defended the industry while testifying for the Coalition for Prediction Markets, whose members include Kalshi, Robinhood, Coinbase, Crypto.com, and Underdog.

McHenry argued prediction markets differ fundamentally from casinos and sportsbooks because users trade against one another instead of betting directly against a house operator. He described the platforms as exchanges driven by participation, liquidity, and information flow rather than customer losses.

He told senators that coalition members already operate under federal oversight through the CFTC and comply with anti-money laundering standards, trade surveillance systems, know-your-customer rules, and market manipulation safeguards. McHenry also said prediction-market operators prohibit athletes, coaches, referees, and other insiders from participating in markets tied to competitions they could influence.

Tensions escalated when Sen. John Hickenlooper challenged McHenry over advertising practices tied to prediction-market companies. Hickenlooper referenced a promotional campaign involving a TikTok influencer who claimed winnings from Kalshi helped cover two years of rent after struggling financially.

The Colorado senator argued that marketing sports-event contracts as potentially “financially life-changing tools for average people” risks misleading vulnerable users into believing they can reliably profit from uncertain outcomes.

Hickenlooper additionally raised concerns about reports that younger social media influencers may have promoted betting-style products to teenagers. He warned lawmakers that minors are “easily manipulable” and questioned whether existing oversight structures are sufficient.

McHenry defended the CFTC’s authority, describing the regulator as “a cop on the beat” capable of investigating fraud and manipulation. Hickenlooper responded that the agency lacks meaningful experience regulating sports wagering products and criticized a self-certification process that can permit contracts to launch within a single business day.

Integrity systems become central focus

Scott Sadin, co-founder and co-chief executive officer of Integrity Compliance 360, told senators that the integrity-monitoring industry has expanded dramatically since legal sports betting spread across the country.

Sadin explained that successful oversight now depends on constant coordination among sportsbooks, sports leagues, regulators, law enforcement agencies, and independent monitoring firms. He said suspicious betting patterns and potential insider activity are already being identified through real-time cooperation across the industry.

According to Sadin, IC360 works with more than 200 organizations worldwide, including every major U.S. professional sports league, college athletic conferences, sportsbooks, regulators, and prediction-market exchanges.

He described the company as the “connective tissue” linking those groups together during investigations and monitoring efforts.

Sadin also outlined the technology behind modern integrity surveillance. Monitoring systems review transaction-level betting data, odds movements, officiating trends, and player availability information to identify what he called “correlated abnormalities” that may signal manipulation or unusual activity.

He told lawmakers the existing system has proven effective but must continue adapting as wagering technology evolves rapidly.

State regulators outline consumer protections

Mary Beth Thomas, executive director of the Tennessee Sports Wagering Council, used her testimony to showcase how one state has approached online sports betting regulation.

Tennessee allows only online wagering and has adopted several restrictions intended to reduce integrity risks. Thomas said the state bans betting on individual college athlete proposition wagers and prohibits live prop betting involving college sports.

The state also bars wagers tied to injuries, penalties, or random chance elements during games.

Thomas described detailed identity-verification rules designed to prevent underage gambling, proxy betting, and fraud. Tennessee sportsbooks must use multifactor authentication, secondary identification reviews, and strict know-your-customer procedures before allowing customers to place bets.

She noted that Tennessee does not permit sportsbooks to accept credit cards. Bettors instead must fund accounts using bank transfers, debit cards, or comparable cash-equivalent methods.

Thomas additionally drew attention to the state’s self-exclusion system, which requires operators to suspend gambling accounts and stop marketing communications for users who voluntarily opt out. Sportsbooks must also report suspicious betting activity immediately to regulators and integrity-monitoring companies.

Beyond regulatory issues, lawmakers also heard warnings about gambling addiction and mental health risks tied to nonstop online betting opportunities. Written testimony submitted to the committee argued that microbetting, AI-driven wagering products, and constant smartphone access could intensify financial distress and compulsive gambling behavior, especially among younger users.

By the end of the hearing, senators from both parties agreed that sports wagering has entered a new phase following years of accelerated growth, even as major disagreements remain over how prediction markets should be regulated.

Hickenlooper closed by stating the real-world consequences tied to gambling proliferation and the need for lawmakers to act quickly. “I feel that all five of you are willing and engaged to fix some of these serious, glaring problems, and look forward to working with the chair to provide us a sense of urgency that these are real people’s lives that are being negatively impacted right now.”

Blackburn said the discussion provided a starting point for future legislative conversations involving both federal oversight and state authority. “This allows us to start to build where we should move in regulation and also looking at the division between what should be federal and what should be state, and preserving those states’ rights in order to move forward with this.”

Featured image: Screenshot via C-SPAN

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Illegal online gambling operations across Southeast Asia have grown into a major driver behind global scam networks now stealing billions from Americans each year, according to the chairman of the House Select Committee on China.

At a Capitol Hill hearing Tuesday (May 19), committee chairman John Moolenaar said Chinese-linked criminal organizations originally built much of the region’s underground economy around online gambling businesses before expanding into fraud, money laundering, cybercrime, and human trafficking.

“Our nation confronts one of the fastest-growing and largest financial threats facing Americans: the industrial-scale scam and fraud ecosystem fueled by China and enabled by corruption, weak governance, and illicit finance in Southeast Asia,” Moolenaar said.

Lawmakers used the hearing, titled “Crime, Corruption, and Power: The Rise of CCP-linked Scam Networks Targeting Americans and Threatening U.S. Security,” to examine how gambling compounds in Cambodia and Myanmar transformed into international fraud centers targeting victims worldwide.

Investigators told the committee that Chinese crackdowns on domestic gambling and online fraud pushed many criminal groups into Southeast Asia, where corruption and weak oversight allowed operations to expand quickly. Networks that once focused largely on sports betting and casino-style gambling now run elaborate cryptocurrency scams, romance frauds, and fake investment schemes aimed heavily at Americans.

Southeast Asia illegal gambling scam networks using payment systems to target Americans

The committee also released a report describing the scam compounds as part of a broader criminal infrastructure supported by underground payment systems, illicit finance channels, and cryptocurrency laundering operations. Moolenaar said Americans lost at least $10 billion to online scams during 2024 alone.

Lawmakers pointed to recent international enforcement actions as evidence of how deeply connected gambling and fraud operations have become. British and American authorities recently dismantled a $15 billion illegal gambling and crypto scam network that investigators said moved money through digital assets and offshore payment systems tied to organized criminal groups.

Separate investigations and media reports have also examined companies such as the Lixin Group, which has faced allegations tied to illegal online gambling operations connected to Southeast Asian betting platforms. Analysts say gambling businesses operating in the region helped create financial channels later exploited by scam syndicates.

The committee’s investigation highlighted what lawmakers called evidence linking a Chinese state-owned company to construction work at scam compounds through contracts with criminal organizations. While lawmakers stopped short of accusing Beijing of directly running the operations, Moolenaar argued Chinese authorities have not done enough to dismantle them.

Human trafficking concerns remain central to the investigation. According to lawmakers, many workers are lured through fake job offers before having passports confiscated and being forced into online fraud schemes under threats or abuse.

Moolenaar urged Congress to pass the Dismantle Foreign Scam Syndicates Act, saying lawmakers must treat the growing scam economy as both a criminal enterprise and a broader national security threat.

Featured image: Select Committee on China via X

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Formula 1 is moving deeper into the American betting market after naming FanDuel an Official Betting Operator through a new multi-year agreement. The partnership marks the first time the racing series has signed a sportsbook operator in the United States, adding another major step to Formula 1’s growing commercial push across North America.

FanDuel, Flutter’s online gaming brand in the region, will integrate sportsbook odds into Formula 1’s age-gated Betting Guide as well as betting-focused editorial coverage appearing on the sport’s website and mobile app. The companies also said they will develop responsible gaming content aimed directly at Formula 1 audiences.

The agreement builds on Formula 1’s effort to make live race data more useful for sportsbooks and bettors. In recent years, the series has explored new data-driven betting products and expanded relationships designed to increase wagering opportunities during race weekends. Formula 1 has also worked with Alt Sports Data to distribute official betting data and create markets tied to in-race action.

Formula 1 expands its betting arm through FanDuel partnership amid push into the US market

Sportsbooks have increasingly viewed Formula 1 as one of the fastest-growing international sports in the United States. Industry analysts have pointed to expanding television audiences, the popularity of Netflix’s “Drive to Survive,” and the addition of races in Miami, Las Vegas, and Austin as major drivers behind betting growth. Operators have also leaned into live betting because Formula 1 produces a constant stream of timing, tire, weather, and strategy information throughout each race.

“Being named an Official Betting Operator of Formula 1 marks an exciting step forward as we enhance our sportsbook product to deliver more interactive experiences for fans,” said Karol Corcoran, Managing Director of FanDuel Sportsbook. “Formula 1 generates an incredible amount of real-time data, and our platform is built to turn that into engaging betting opportunities for fans. This partnership will allow us to deliver even more immersive, data-driven experiences throughout the race weekend.”

Eligible users already can place wagers on race winners, podium finishes, and head-to-head driver matchups. FanDuel said additional betting formats tied to the Formula 1 season are expected later this year as sportsbooks continue experimenting with more interactive race markets.

“We’re delighted to welcome FanDuel as our new Official Betting Operator in the United States and Canada – markets that continue to increase their love and engagement with Formula 1,” said Jonny Haworth, Director of Commercial Partnerships, Formula 1. “As sports betting becomes an increasing component with how fans, especially in the US, interact with sport, it’s vital we have a strong and well-placed partner to deliver our strategy and fuel our momentum across the market.

With tens of millions of fans across the country, FanDuel is yet another avenue that eligible fans can enjoy and experience the thrill of Formula 1.”

Featured image: Flutter Entertainment via press release

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DraftKings is pushing back hard against the NCAA’s trademark lawsuit, telling a federal court the sports betting company legally used phrases connected to the men’s basketball tournament and did nothing that would confuse customers about any relationship with the college sports organization.

In a response filed in the U.S. District Court for the Southern District of Indiana and seen by ReadWrite, the sportsbook operator denied allegations that its promotions and betting products improperly traded on NCAA branding. The company said the NCAA “has no valid claim against it” and argued the association is not entitled to damages or other relief.

DraftKings acknowledged using phrases tied to the tournament, including “March Madness,” “Sweet 16,” “Elite 8,” “Final 4,” and “March Mania.” Still, the company rejected accusations involving trademark infringement, unfair competition, dilution, and false association under the Lanham Act.

The NCAA filed suit earlier this year after accusing DraftKings of using tournament branding to promote sports wagering products without authorization. The dispute quickly expanded beyond the initial complaint, with the NCAA later asking the court for a faster trial schedule and attempting to block some of DraftKings’ use of the disputed phrases during the case.

DraftKings fights NCAA trademark claims in court over tournament branding

A federal judge recently denied the NCAA’s request for a preliminary injunction that would have restricted DraftKings from using certain tournament-related language while litigation continues. This allowed the company to keep using the terms for now as the trademark fight moves forward.

DraftKings described itself in court filings as a digital sports entertainment business that provides statistics, commentary, editorial material, analysis, and legal sports betting products where allowed by law.

The company argued its references to NCAA tournament terminology were protected as “nominative fair use” because the language was used only “to identify and refer to the NCAA’s tournaments and related games, events, and rounds, including in connection with lawful sports wagering offerings and editorial, analytical, informational, and expressive content published on DraftKings Network.”

DraftKings also claimed the challenged phrases were used “fairly, descriptively, and in good faith” when discussing college basketball events. The company further argued that terms such as “Elite Eight” and “Sweet Sixteen” are descriptive or generic references to tournament rounds and “have not acquired secondary meaning.”

Elsewhere in the filing, DraftKings admitted it “does not have any affiliation or sponsorship with the NCAA” while denying other allegations connected to consumer confusion.

The sportsbook operator also raised defenses tied to estoppel, waiver, acquiescence, abandonment, laches, and First Amendment protections. DraftKings argued the NCAA waited too long to sue despite allegedly knowing betting companies had referenced tournament terminology for years.

The company requested a jury trial and asked the court to award attorneys’ fees and litigation costs.

Featured image: NCAA / DraftKings

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The Commodity Futures Trading Commission (CFTC) is asking a federal judge to block a new Minnesota law that would make operating or helping run certain prediction markets a felony, opening another front in the growing fight between states and federal regulators over event-contract trading.

The lawsuit, filed Tuesday (May 19) in federal court, argues that Congress gave the CFTC sole authority over derivatives markets decades ago and that Minnesota cannot override that system through state criminal law. The agency wants the court to stop the measure before it takes effect August 1.

“Plaintiffs bring this action to halt Defendants’ efforts to criminalize the operation of derivatives markets governed by federal law,” the complaint states.

The case names Minnesota, Gov. Tim Walz, Attorney General Keith Ellison, the Department of Public Safety, and Alcohol and Gambling Enforcement Division Director Jon Anglin as defendants.

CFTC lawsuit against Minnesota comes as federal regulators battle states over event contracts

Minnesota lawmakers added the prediction market language to the state’s public safety bill earlier this year. The statute defines a prediction market as a system allowing consumers “to place a wager on the future outcome of a specified event,” including elections, weather, sporting events, and government actions.

Federal regulators say the law reaches far beyond traditional gambling restrictions. According to the complaint, it would criminalize not only exchanges offering event contracts, but also payment processors, service providers, and others connected to those markets. The statute bans anyone from “intentionally facilitat[ing] the operation of a prediction market,” including businesses handling payments or “provid[ing] supportive services to a prediction market.”

The CFTC and the Justice Department also filed a request for a preliminary injunction seeking to pause enforcement while the litigation moves forward. “This Court should grant Plaintiffs’ motion and enter the proposed order, which would enjoin Defendants from enforcing Article 8 of SF 4760,” the filing states.

The lawsuit follows similar federal action against Wisconsin and reflects a wider campaign by regulators to push back against state gambling enforcement efforts targeting prediction market operators. Federal officials have argued in several recent cases that event contracts traded on federally regulated exchanges fall under the Commodity Exchange Act rather than state gaming laws.

“These markets are CFTC-registered exchanges, and the contracts they offer — derivative instruments called ‘event contracts’ — have traded under the Commission’s oversight for decades,” the complaint states. “If Minnesota’s law is permitted to go into effect, the exchanges that offer these longstanding contracts — as well as those who partner with them — can be prosecuted as felons.”

The agency also warned that the Minnesota law could affect weather and agricultural hedging products used by farmers.

“This Minnesota law turns lawful operators and participants in prediction markets into felons overnight,” CFTC Chairman Michael S. Selig said in a statement released alongside the lawsuit. “Minnesota farmers have relied on critical hedging products on weather and crop-related events for decades to mitigate their risks. Governor Walz chose to put special interests first and American farmers and innovators last.”

Featured image: Gage Skidmore / CC BY-SA 2.0 / CFTC

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Connecticut State Police arrested 100 people Friday after officers descended on a rural Tolland property that investigators say hosted a large-scale cockfighting and illegal gambling operation.

Troopers arrived at 55 Mountain Spring Road around 1:29 p.m. to carry out a search and seizure warrant tied to what police described as a long-running investigation. In a media release, the agency said detectives had been examining reports of “illegal gambling and cockfighting events being hosted inside this residence,” according to a state police media release.

By the end of the operation, investigators reported recovering roughly $90,000 in cash from the property. The Connecticut Department of Agriculture also located 273 birds at the site. State police said all 273 birds were euthanized “due [to] their deteriorated conditions.”

The operation drew a major law enforcement response to the otherwise quiet and wooded neighborhood Friday afternoon. Police alerts and social media posts indicated Mountain Spring Road was temporarily shut down between Tolland Stage Road and Elizabeth Lane while officers secured the area and processed evidence.

Charges filed against homeowners in Tolland amid gambling and cockfight probe

Among those arrested were the property owners, Elvin Miranda, 59, and Lisa Miranda, 66. According to police, both were taken into custody at the scene before being transported to Troop C for processing.

Authorities charged the pair with cruelty to animals, professional gambling, operating a gambling premise and risk of injury to a minor. Police said each later posted a $250,000 cash or surety bond before being released. They are expected to appear June 18 in Rockville Superior Court.

Dozens of other people arrested during the raid came from Connecticut and several neighboring states, according to records released by state police. Bond amounts for those defendants ranged from $10,000 to $500,000. Court dates are scheduled throughout June in Rockville Superior Court.

State police said the investigation relied on assistance from multiple specialized units. Those included the Emergency Services Unit Tactical Team, Aviation Unit, Drone Unit, K9 Unit, Eastern District Major Crime unit and Intelligence Operations Unit. Troop C personnel also supported the raid and subsequent arrests.

Several outside agencies also assisted during the operation, including the Massachusetts State Police Special Tactical Operations Team, the Connecticut Department of Correction, the Connecticut Department of Agriculture, the Tolland Fire Department and Tolland EMS. Prosecutors from the Office of the State’s Attorney for Rockville Superior Court also participated.

Authorities said the investigation has not been closed and additional investigative work is continuing.

“This operation sends a signal that if you engaged in staged animal fighting, you will jeopardize your freedom,” said Wayne Pacelle, president of Animal Wellness Action.

“Even in an isolated quarry far from public view, law enforcement tracked this criminal enterprise, dismantled it, and rescued hundreds of animals from horrific abuse.”

Featured image: CTPOLICELIVE via Facebook

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A fresh industry report says unregulated online gambling has become one of the world’s largest hidden digital economies, with global wagering volume reaching an estimated $5.9 trillion during 2025.

Gaming Compliance International’s latest study, Online Gaming 2025: Global, found the market expanded from $5.1 trillion in 2023 to $5.7 trillion in 2024 before climbing another 4% this year. Researchers said unregulated operators now account for 78% of worldwide online gambling gross gaming revenue, while licensed operators make up the remaining 22%.

The company classifies unregulated gambling as offshore sports betting, casino gaming, poker, crypto wagering, and lottery products that continue targeting customers in jurisdictions where they lack legal approval.

“Unregulated online gambling is the world’s third-largest ‘economy’ after the USA and China,” the report stated, while also describing the sector as “the biggest form of cybercrime in the world.”

Growing concerns around global unregulated gambling

GCI said many consumers now struggle to tell legal operators from illegal ones because online gambling platforms, gambling-style entertainment products, and loosely regulated services increasingly appear together across streaming platforms, social media, and mobile apps. The report refers to this environment as a “White Noise Marketplace.”

Alongside traditional black-market sportsbooks and casinos, researchers pointed to the rise of “unacknowledged” gambling products. These include social casinos, prediction markets, sweepstakes sites, skins trading services, and TikTok contests that mirror gambling behavior without always fitting existing legal definitions.

The findings build on several recent studies tracking the growth of illegal wagering. A major UK study previously estimated that roughly £4.3 billion is staked annually through black-market gambling channels. In the United States, the American Gaming Association has also warned that illegal gambling now represents a substantial portion of total wagering activity.

GCI said illegal sports streaming continues driving traffic toward offshore gambling operators. The report claimed more than 80% of illegal sports streams viewed in the US and UK during 2024 and 2025 carried advertising connected to unregulated betting companies. Separate reporting on UK streaming activity found black-market gambling promotions appeared across nearly all major illegal sports broadcasts online.

Researchers also tied expected growth in 2026 to major sporting events including the Super Bowl, March Madness, and the FIFA World Cup, alongside continued regulatory loopholes and the expansion of crypto gambling products.

The report argues that regulators can no longer focus exclusively on licensed operators if they want an accurate understanding of online gambling markets.

“There is only one marketplace in a jurisdiction,” the report states. “Unfortunately, it features two industries: one regulated, one unregulated.”

GCI is now pushing for monitoring systems that track advertising, affiliates, payments, social platforms, streaming services, apps, and peer-to-peer communication channels used by gambling operators.

Featured image: Canva

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A proposed securities class action is targeting Sportradar Group AG after a shareholder accused the sports betting technology company of misleading investors about its compliance controls and connections to illegal gambling operators.

Investor James Anthony Smale filed the lawsuit May 18 in federal court in Manhattan. The case seeks to represent people who purchased Sportradar Class A shares between November 7, 2024, and April 21, 2026. The complaint names the company along with Chief Executive Officer Carsten Koerl and Chief Financial Officer Craig Felenstein.

Sportradar supplies betting data, odds services, fraud detection tools and audiovisual content to sportsbooks and sports leagues worldwide. The company works with organizations and operators including the NBA, MLB, NHL, PGA Tour, FIFA, DraftKings, FanDuel and Bet365. Its shares trade on the Nasdaq under the symbol SRAD.

According to the complaint, Sportradar repeatedly assured investors that the company followed strict legal and regulatory standards when onboarding sportsbook customers. The suit says executives stressed detailed “Know-Your-Customer” screening procedures meant to verify operators were properly licensed.

The filing states comments Koerl made during a November 2025 earnings call, when he described a “four-level process” to confirm the company “only work[s] with licensed operators.” Koerl also said Sportradar had “a global compliance team, which is making an intensive KYC with every operator.”

The complaint also points to an April 2025 CNBC interview where Koerl compared the company’s integrity division to “the SEC or the FBI” for the gambling industry.

Sportradar illegal gambling reports triggered stock decline

The lawsuit says investors learned damaging information on April 22, 2026, after Muddy Waters Research and Callisto Research released reports alleging that Sportradar maintained extensive relationships with operators active in black and gray gambling markets.

According to the complaint, Muddy Waters alleged Sportradar “has actively aided and abetted illegal gambling across the world’s black and grey markets – not as an accident or an oversight, but as a business strategy.” Investigators posing as sportsbook operators reportedly spoke with Sportradar sales staff during a gaming conference and were allegedly told the company “serves everyone.”

The report also described introductions to operators connected to illegal Asian gambling markets, including the Yabo Group, which the complaint characterizes as a well-known illegal betting operation in China.

Callisto Research separately claimed that more than 270 gambling platforms using Sportradar products or services were operating illegally in regulated or prohibited jurisdictions. The report further alleged that regulators in North America and Europe had started reviewing the company’s activities.

Sportradar denied the allegations after the reports were published, calling the claims inaccurate and defending its compliance practices. The company also disputed assertions that it knowingly worked with illegal operators.

Shares of Sportradar dropped 22.6% on April 22, falling from $16.84 to $13.04 after the reports became public, according to the lawsuit. The complaint alleges the company and its executives violated federal securities laws by making misleading statements and concealing the extent of alleged dealings with unlawful betting operators.

ReadWrite has reached out to Sportradar for comment.

Featured image: Sportradar

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Evoke has handed Bally’s Intralot more time to decide whether it will move ahead with a formal takeover offer for the betting and gaming company as negotiations between the two sides continue.

The companies said discussions are still active around a possible acquisition covering all issued and expected share capital in evoke. The approach, first disclosed on April 20, valued the business at 50 pence a share and would likely be structured as an all-share deal with a partial cash alternative attached.

The extension gives Bally’s Intralot until 5 p.m. London time on June 8, 2026, to either announce a firm intention to make an offer or walk away from the process. Evoke said the deadline could still be pushed back again if its board agrees.

Evoke sets new deadline for Bally’s Intralot 

Bally’s Intralot has already said that any formal proposal would still depend on standard regulatory approvals and customary conditions. The group also kept the option to revise major terms of any bid, including pricing, structure, and the balance between cash and shares.

Evoke stressed there is still no guarantee that a formal offer will eventually emerge.

The talks arrive during a turbulent period for evoke and the wider UK gambling sector. Earlier this year, the company launched a strategic review examining options that reportedly included a potential sale, a breakup of business divisions, or other restructuring measures after tax increases announced in the UK budget added pressure across the industry.

At the same time, the company has been reshaping operations around major brands including William Hill and 888. William Hill recently confirmed plans to close roughly one in ten betting shops across the UK during 2026 as retail gambling operators continue adjusting to higher operating costs and changing customer habits.

Despite those challenges, evoke recently reported what executives described as its strongest trading quarter in years. Chief executive Per Widerström pointed to improved online performance and stronger customer activity, although he also criticized tax increases introduced by the UK government and warned they could damage long-term growth for regulated operators.

The latest takeover discussions also follow Bally’s completion of its merger with Intralot in a transaction valued at roughly $3 billion. This expanded Bally’s international gaming footprint and strengthened its technology and lottery operations, giving the company greater scale as it pursues further expansion opportunities.

Evoke said Morgan Stanley and Rothschild & Co are advising the company during the discussions. The business also reminded shareholders that UK takeover rules do not formally apply because evoke is incorporated in Gibraltar, meaning any future bid would not fall under the authority of the UK Takeover Panel.

Featured image: evoke Plc / Bally’s Intralot

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Kalshi said Monday (May 18) it will spend $2 million over the next two years on a partnership with the National Council on Problem Gambling, becoming the first prediction market company to formally join the organization as concerns grow around responsible consumer behavior in fast-growing trading markets.

The agreement also creates a new “Financial Services & Trading” membership category inside the National Council on Problem Gambling, known as NCPG. Kalshi will join as a platinum-level member, according to statements released by both groups.

The partnership is built around a new initiative focused on trader health and safety. Both organizations said the program will fund education campaigns, research projects, and consumer resources designed to help users recognize risky financial behavior across retail trading platforms.

Kalshi runs a federally regulated prediction market exchange where users trade contracts tied to real-world events, including elections, sports, entertainment, and economic indicators. The company has consistently argued its platform should be viewed as a financial exchange rather than a sportsbook or casino.

Even so, prediction markets are drawing increasing attention from lawmakers and regulators who question whether some products resemble gambling. That debate has intensified as sports betting and retail trading platforms continue expanding across the United States.

Our previous coverage noted that critics increasingly compare prediction markets to gambling because users can profit from event outcomes in ways that mirror sports wagering. Kalshi, meanwhile, has continued expanding deeper into sports-related contracts while defending its business as federally regulated financial trading.

Kalshi focuses on responsible gambling amid concerns

The company has also tightened internal rules in recent months. ReadWrite reported that Kalshi restricted certain trading activity involving politicians, athletes, and other individuals who could potentially possess insider information tied to market-moving events. The company has simultaneously expanded its sports operations and recently added a key executive hire as it pushes further into sports-based prediction products.

“NCPG’s goal has always been to mitigate harm by increasing education, awareness, and understanding of risky behaviors, while ensuring access to trusted, scientific, and evidence-based information and healthcare resources,” said Heather L. Maurer, Executive Director of NCPG. “Innovation and responsibility can and must evolve together. Kalshi’s engagement demonstrates a commitment to mitigating harm before it occurs and ensuring support resources are accessible when they are needed.”

Kalshi said its platform already includes trading breaks, self-limits, self-exclusion tools, and mental health resources for users. The company also said it does not take positions against customers because prices are driven by market activity.

“At Kalshi, we believe in the power of prediction markets, and we are sensitive to the fact that they, like any financial trading products, come with risks,” said Tarek Mansour, co-founder and CEO of Kalshi. “As prediction markets continue to evolve, we are deeply committed to setting a new standard for responsible trading by investing in the tools, education, and protections needed to promote healthy participation and customer safety and hope that over time all trading platforms with significant retail participation follow suit.”

Both organizations said Kalshi’s funding will support consumer education campaigns focused on problematic trading behavior. NCPG added that it remains neutral regarding the legality of gambling, wagering, and prediction market products.

Featured image: Kalshi / Canva

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Sens. Katie Britt and Richard Blumenthal rolled out bipartisan legislation Monday (May 18) aimed at stopping online platforms from directing sports betting advertisements toward minors. The proposal, called the Gaming Advertisement to Minors Enforcement Act, or GAME Act, would apply to social media companies and digital advertising networks that promote sportsbooks and prediction markets.

Lawmakers from both parties have been pushing for tighter federal oversight of the online gambling industry. Recent congressional efforts have included renewed attention on the SAFE Bet Act, a separate proposal that would add consumer protections, advertising restrictions, and affordability checks for sports bettors.

The legislation would apply to major digital platforms with more than 100 million monthly users, including social media companies, search engines, and online advertising networks. The bill also specifically bans gambling ads targeted through behavioral profiling, device tracking, personal data, or precise geolocation information tied to minors, while still allowing broader contextual advertising not based on user-specific data.

Bipartisan bill to put pressure on gambling companies over sports betting ads targeting minors

Britt said lawmakers are increasingly worried about how often young users encounter gambling promotions online.

“The rise in sports gambling among minors, particularly among young boys, is jarring,” said Senator Britt in a press release. “We know targeted advertising from gambling and prediction market websites can serve as the gateway to dangerous habits that too often become crippling addictions. Our legislation takes a critical step toward addressing this problem before it worsens.

Our next generation is our greatest asset, and it’s our responsibility to take the necessary steps to protect them from online dangers whenever we can—which is exactly what this bill does.”

Blumenthal argued that gambling operators are aggressively pursuing younger audiences through digital advertising campaigns and mobile platforms.

“Sportsbooks and prediction markets are treating young people like a gold rush, flooding the internet with advertisements and promotions to hook them on gambling when they’re young,” said Senator Blumenthal. “High schoolers, even middle schoolers, are now gambling on their phones as never before, losing real money and creating life-altering addiction. The GAME Act would create a nationwide ban on targeted advertising of gambling to kids, backed with the force of punishing fines.”

Under the proposal, the Federal Trade Commission would oversee enforcement. The rules would become active one year after the bill becomes law. Companies violating the restrictions could face civil penalties and court-ordered injunctions. Repeat offenders could also face Justice Department action, including fines reaching $100,000 for every gambling advertisement shown to a minor.

The legislation builds on Britt’s earlier bipartisan efforts focused on youth gambling and illegal offshore betting operations. In late 2025, she joined lawmakers urging the Department of Justice to crack down on unauthorized offshore gaming sites that critics say remain accessible to underage users. Earlier this year, she also pressed the Centers for Disease Control and Prevention to expand research into youth sports gambling trends and addiction risks.

Research cited by the senators says people who start gambling before turning 18 are significantly more likely to develop gambling problems later in life.

Featured image: SenKatieBritt via X / SenBlumenthal via X

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