Temporary casinos in Chicago and Waukegan will remain open longer after Illinois regulators approved extensions, allowing operations to continue while permanent resorts are built and a tribal-backed legal challenge tied to the Waukegan license remains unresolved. The decision keeps gaming activity running at both locations while work continues on their permanent casino developments.

The board approved steps tied to provisions contained in the state’s Revenue Omnibus Bill, which is still awaiting the governor’s signature. Once that happens, authority delegated to the Illinois Gaming Board administrator will allow the extensions to move forward.

Under the plan, Bally’s Chicago Operating Company, LLC, doing business as Bally’s Chicago, can continue operating its temporary casino for another 12 months. The extension covers the period from September 6, 2026, through September 9, 2027.

In Waukegan, FHR-Illinois LLC, doing business as American Place, received approval for an additional 18 months of temporary operations. Its extension runs from August 18, 2027, through February 17, 2029.

Bally’s temporary casino goes ahead in Illinois as Waukegan still faces tribal lawsuit

The Chicago extension comes as Bally’s continues construction on its permanent riverfront casino and entertainment complex. Earlier this year, the $1.7 billion development reached its full structural height, marking a major construction milestone. The project is expected to become the city’s first permanent casino destination and remains one of the largest gaming developments underway in Illinois.

In Waukegan, the long-running casino licensing process has continued to draw attention. A lawsuit involving the Forest County Potawatomi Community has challenged aspects of the selection process and could potentially require the city to revisit elements of how casino licenses were evaluated. Despite that legal dispute, development plans for the permanent American Place casino have continued to move ahead.

Board members also discussed ongoing efforts to strengthen responsible gambling protections. Illinois Gaming Board Administrator Marcus D. Fruchter said the agency is working with researchers and industry experts to examine possible upgrades to the state’s voluntary Self-Exclusion Program.

“The IGB’s goal is to expand coverage to the Self-Exclusion Program to address existing gaps through research-driven and data-informed changes and enhancements to help ensure the program continues to evolve, serve the needs of participants, and best support individuals in their treatment and recovery from problem gambling without undue barriers,” said IGB Administrator Marcus D. Fruchter. 

“Among other actions, we are engaged with experts to determine the most viable technical solution to incorporate the Self-Exclusion Program into Illinois video gaming, an agency priority that I have frequently discussed. While we have made no decisions or finalized plans on the technology or implementation methodology, we are committed to achieving this important goal and we are moving forward.”

Fruchter said more updates are expected later this summer.

The meeting also included several licensing decisions. Regulators approved renewals and occupational licenses across casino gaming, video gaming and sports wagering, while denying one casino occupational license application and one video gaming location application. The board’s next meeting is scheduled for August 20, 2026. Illinois currently has 17 casinos, 13 active and approved sportsbooks, and nearly 9,000 licensed video gaming establishments.

Featured image: Waukegan American Place via website

The post Illinois extends Bally’s casino operations as Waukegan license lawsuit continues appeared first on ReadWrite.

Today in prediction market news, we’re tracking the latest developments across the industry, including World Cup market reactions, Kalshi’s AI agent rollout, and other major stories shaping the space. Follow our live coverage throughout the day for up-to-the-minute prediction markets and iGaming news.

The post World Cup losers, Kalshi’s in-house AI agent, today in prediction market news LIVE appeared first on ReadWrite.

Nevada gaming regulators say an investigation into unusual sports betting tied to Fresno State men’s basketball has led to an arrest, while authorities continue searching for other people allegedly involved in the scheme.

According to an announcement published on Thursday (June 11) from the Nevada Gaming Control Board, the case centers on proposition wagers connected to the alleged intentional underperformance of a Fresno State athlete during the 2024-25 season. Investigators say former and current associates linked to college basketball programs used inside information to place bets and profit from the results.

Authorities said the inquiry relied on subpoenas, financial records, cellphone data, information supplied by licensed sportsbooks, and coordination with the NCAA. Regulators said that evidence established probable cause that multiple individuals worked together to place fraudulent wagers connected to a Fresno State game played on January 7, 2025.

The Gaming Control Board said one suspect was arrested and booked into the Clark County Detention Center on May 5, 2026. The person faces allegations under Nevada law that include fraudulent acts, conspiracy to cheat at gambling, and conspiracy to launder money.

Nevada investigation focuses on Fresno State alleged betting scheme

Officials have not publicly identified the arrested individual. The agency also said additional suspects have not yet been apprehended and that criminal cases against others remain under development. Because the investigation is still active, regulators declined to release further details.

Investigators say the alleged misconduct focused on proposition betting markets rather than wagers on the final outcome of games. According to the board, evidence indicated bettors acted on advance knowledge that a player would intentionally underperform.

The case arrives amid scrutiny of sports wagering issues across college athletics. Earlier reports involving the University of New Orleans men’s basketball program led to the suspension of four players during an investigation into possible gambling-related violations. Separate NCAA enforcement actions have also shown concerns about manipulated betting activity, with six student-athletes reportedly expelled after findings tied to improper wagering conduct. In February 2025, we reported that Fresno State had suspended two of its top-scoring players and removed a third player from the team. 

By September, the NCAA had identified three players—Mykell Robinson, Steven Vasquez, and Jalen Weaver—from Fresno State and San Jose State who had been dismissed from their teams and expelled from their schools after being found to have gambled on their own games.

Those NCAA disciplinary actions were separate from the Nevada criminal investigation, and the Gaming Control Board has not identified any of those players as suspects.

Nevada regulators said cooperation with the NCAA played an important role in the Fresno State investigation. The NCAA had already reviewed betting-related concerns involving members of the Fresno State program and found violations connected to sports wagering and game manipulation.

In the statement announcing the arrest, NGCB Chairman Mike Dreitzer said, “The Nevada Gaming Control Board remains committed to protecting the integrity of Nevada’s gaming industry and will continue to aggressively investigate any activity that threatens the fairness and public confidence of regulated sports wagering.”

For now, the Gaming Control Board says it will not release additional information. Investigators remain focused on identifying and pursuing other suspects, and officials say the wider criminal investigation is still underway.

Featured image: Cadking3 via WikiCommons / CC BY-SA 3.0

The post Nevada betting probe leads to arrest in Fresno State basketball case appeared first on ReadWrite.

Brendan Sorsby is headed for the NFL Supplemental Draft, bringing an abrupt end to his short stay at Texas Tech, while a wider legal clash between the school, the NCAA and the Big 12 continues to unfold.

In a statement posted to Instagram, Sorsby wrote: “I am grateful for the support from my family, my Tech coaching staff, teammates, the community, and so many others who have encouraged me to address and learn more about this important issue.”

Sorsby said. ‘”As my journey continues, I remain fully committed to and focused on being the best I can be, both on and off the field.” The quarterback did not directly address the Big 12’s lawsuit or the allegations detailed in the conference’s complaint, instead focusing on those who supported him during the controversy and his plans moving forward.

His departure arrives only days after the Big 12 filed a federal lawsuit against Texas Tech University, the Texas Tech University System and Texas Attorney General Ken Paxton. Through that filing, conference leaders asked a court to confirm that the league can punish member schools under its bylaws when their conduct is viewed as conflicting with conference interests and values.

This follows Texas Tech’s previous plan to use Sorsby during the 2026 season despite questions surrounding his eligibility. Court filings cited by the conference describe an extensive history of sports wagering during Sorsby’s time at Indiana and later Cincinnati.

“The Big 12 has long spoken out about the dangers of sports wagering by student-athletes and remains committed to protecting the competitive integrity of conference competition. Universities should not field players who have bet on their own team’s games in college athletics.”

According to the complaint, Sorsby admitted placing thousands of bets while enrolled at those schools. The filing claims he made at least 40 wagers involving Indiana football games while on the team, wagered heavily on other college sports and was involved in betting activity totaling at least $90,000. The conference also alleges he transferred more than $60,000 to another person to place bets on his behalf and says some of that activity may have violated laws in multiple states.

“Universities should not field players who have bet on their own team’s games in college athletics,” the Big 12 Board of Directors said in a statement issued after the lawsuit was filed.

Big 12 Conference files lawsuit over Brendan Sorsby as he enters NFL Draft

The legal fight intensified after a Texas judge issued an injunction that prevented the NCAA from enforcing eligibility restrictions against Sorsby while separate litigation moves forward. The ruling was widely viewed as a significant victory for Texas Tech, which argued that the quarterback should be allowed to play as the case proceeds.

The Big 12, however, has maintained that NCAA eligibility and conference governance are separate matters. In its lawsuit, the conference argues that even if a player is cleared to participate under a court order, the league still has independent authority to examine whether sanctions against a member institution are appropriate.

Court documents indicate Texas Tech informed the conference it intended to play Sorsby, prompting concerns among other member schools. The filing says some institutions wanted the board to consider penalties that could include financial sanctions or limits tied to participation in the conference championship game.

The conference further argues that its members have “no interest in being required to endorse or even appearing to endorse unethical and indeed unlawful conduct that strikes at the heart of athletic integrity.”

Texas Tech has pushed back against the conference’s position and warned against attempts to impose sanctions while the underlying litigation remains unresolved. 

With Sorsby now leaving for the Supplemental Draft, the immediate eligibility controversy appears to be over. The court battle, though, remains active as the Big 12 seeks judicial confirmation of the powers it says are necessary to protect confidence in conference competition.

Featured image: Brendan Sorsby via Instagram

The post Brendan Sorsby leaves Texas Tech as Big 12 legal fight continues appeared first on ReadWrite.

Playtech has launched its iPoker network in North America for the first time through a new partnership with FanDuel, expanding the company’s poker footprint into regulated markets in the United States and Canada.

The company’s iPoker platform now powers poker games offered through the PokerStars-branded product available exclusively on FanDuel. The service is live in Michigan, New Jersey and Pennsylvania, as well as Ontario, Canada.

With the launch, FanDuel becomes the first operator in North America to use Playtech’s poker technology. Playtech said the agreement forms part of its plans to grow its presence in regulated gaming markets across the region.

Playtech and FanDuel join forces for iPoker North America launch

The rollout follows the launch earlier this year of PokerStars exclusively on FanDuel. The product combines FanDuel’s customer base with the PokerStars brand and allows players in participating jurisdictions to join the same network for tournaments and cash games.

The launch also comes after FanDuel received approval to participate in a multi-state poker network in Michigan, a development that expanded opportunities for shared player liquidity across regulated markets.

Playtech said bringing iPoker to North America is an important step for a product that has been operating in international markets for years. Through the FanDuel partnership, the network is now available to players across several regulated jurisdictions in the U.S. and Canada.

Marat Koss, Chief Interactive Gaming Officer at Playtech, said: “Debuting our industry-leading iPoker platform in North America with a valued partner like FanDuel is a defining moment for Playtech’s North American expansion. We’re immensely proud to bring our poker platform to three major regulated markets and support FanDuel in their mission to deliver a top-tier poker experience to players.”

According to Playtech, FanDuel’s position in the North American online gaming market made it a suitable partner for the expansion. The company said the launch supports its broader efforts to increase its presence in regulated jurisdictions.

The agreement adds poker to FanDuel’s existing online gaming portfolio and extends the relationship between the two companies. FanDuel customers can access Playtech’s poker infrastructure through a network designed to support larger player pools and tournament offerings.

For Playtech, the deal marks the first deployment of its iPoker technology in North America and establishes the network’s presence in four regulated markets across the region.

Featured image: FanDuel / Playtech

The post Playtech brings iPoker network to North America through FanDuel launch appeared first on ReadWrite.

A fresh social media dispute swept through the MMA world on Sunday (June 14) after screenshots surfaced that appeared to show Eric Trump asking UFC Hall of Famer Daniel Cormier about fighter injuries and whether any fights were “rigged” ahead of UFC Freedom 250.

Images shared widely on X appeared to depict a private exchange from an account carrying Eric Trump’s name. The alleged messages sought information that could be valuable to bettors before the highly publicized card being held on White House grounds as part of celebrations tied to President Donald Trump’s 80th birthday and America’s 250th anniversary.

The screenshots alleged Cormier replied that he was not allowed to wager on UFC events and that he believed fighters scheduled to compete were healthy and ready.

Debate over authenticity quickly spread across social media. Some users questioned whether the images were genuine, while others focused on the broader issue of insider information in sports betting.

Trump responded with a categorical denial.

“This is completely fake! I have never reached out to Daniel. In fact, this is scary,” Trump wrote on X.

He later argued that artificial intelligence was responsible for the images.

“We are aware of the fake, AI generated screenshots being circulated online. I have never spoken to Daniel. He has since deleted his post, which confirms it was clearly fabricated.”

Questions remain over Eric Trump  UFC betting claims screenshots

It immediately faced pushback through an X Community Note. The note stated that journalists and other observers reported seeing Cormier post the screenshots before removing them. It also argued that deleting a post does not prove an image was fabricated.

Cormier later added another layer to the controversy when he posted, “Are people really this dumb?”

Although he did not directly mention the screenshots, many users took the remark as a rejection of the claims. Trump appeared to agree, reposting the message and adding: “Thanks Daniel.”

The dispute arrived at a time when betting integrity has become an increasingly sensitive issue for the UFC. Recent reports have shown canceled bouts linked to suspicious wagering activity, investigations into unusual betting patterns, and public discussion surrounding allegations of match fixing. It has drawn attention from sportsbooks, regulators, and fans concerned about the impact of nonpublic information on betting markets.

Separate reporting has also featured fighters strongly rejecting suggestions they would compromise competition for gambling purposes.

Against that backdrop, the viral screenshots attracted outsized attention despite the absence of verified evidence supporting the claims. As of publication, the screenshots have not been independently verified. 

Trump has denied any contact with Cormier, and Cormier’s later public comments were widely interpreted as supporting that denial. No evidence has emerged showing that wagers were placed, confidential information was obtained, or any improper conduct occurred.

ReadWrite has reached out to the UFC for comment.

Featured image: X2o via WikiCommons / Xuthoria via WikiCommons / CC BY-SA 4.0

The post Eric Trump denies UFC betting screenshot claims before White House event appeared first on ReadWrite.

A Minnesota administrative law judge is recommending that Minnesota Valley Cooperative Light & Power Association keep supplying electricity to the Upper Sioux Community, even as the tribe moves ahead with a major solar-and-battery installation aimed at lowering energy costs at Prairie’s Edge Casino Resort.

In findings issued June 8, Administrative Law Judge Joseph C. Meyer determined that the proposed 2.5-megawatt solar array and 800-kilowatt battery storage system is designed to serve on-site needs rather than sell electricity into the grid. According to the ruling, the project is intended to offset roughly 30% of Prairie’s Edge power consumption.

The judge found that the tribe intends for “all power generated by the Project to be consumed or stored on its land” and not exported for sale.

Prairie’s Edge opened in 2003 on trust land within the reservation and operates continuously. The property includes a 160-room hotel and a 20,000-square-foot conference center. Court findings note that casino revenue supports a wide range of tribal government functions, including housing, education, health care, cultural preservation, veteran services, rehabilitation efforts and future economic development.

Dispute centered on Upper Sioux casino solar project

The disagreement began after the Upper Sioux Community hired Wolf River Electric in 2024 to develop the facility on tribal trust land near the casino. Minnesota Valley Cooperative, which serves about 5,250 members in western Minnesota, argued that projects exceeding 40 kilowatts could not simply offset a member’s own demand and instead would require power exports beyond the cooperative’s territory.

In November 2024, the cooperative sent a cease-and-desist notice warning that construction and operation must stop or the tribe “risks being disconnected from electric power service.”

The tribe responded that the project fell within its sovereign authority and maintained that the zero-export design complied with applicable laws and cooperative policies. After mediation efforts failed, the matter moved to the Minnesota Public Utilities Commission and was later referred for a contested case proceeding.

During the case, the cooperative, the tribe and the Minnesota Department of Commerce ultimately agreed that the facility qualifies as a behind-the-meter, zero-export distributed energy resource.

Meyer concluded that neither Minnesota law nor the cooperative’s Board Policy 323 allows the cooperative to impose size restrictions on a behind-the-meter, zero-export system. He also concluded that disconnecting service as a penalty for building or operating the project would conflict with the cooperative’s obligation to provide electricity.

The recommendation does not give the project an unconditional green light. Meyer cited unresolved engineering questions and found that an earlier system impact study did not accurately reflect the project’s final design. He recommended a new independent study and any resulting safety upgrades before service continues under the proposed framework.

The commission will ultimately decide whether to adopt, modify or reject the recommendation.

The case arrives as tribal gaming and development projects continue drawing attention across the US. In Montana, the Confederated Salish and Kootenai Tribes recently opened the 400 Horses Casino. In California, litigation involving the North Fork Rancheria has generated multiple court battles, including a lawsuit challenging casino-related issues and a separate federal ruling that temporarily paused tribal litigation connected to a Northern California casino dispute.

Featured image: Google Maps

The post Minnesota judge backs Upper Sioux casino solar project while preserving cooperative service appeared first on ReadWrite.

Today in prediction market news, we’re closely tracking developments as Kalshi sits at the center of multiple lawsuits filed over the weekend. Follow our live coverage throughout the day for up-to-the-minute iGaming and prediction markets news.

The post Kalshi lawsuits, UFC results, today in prediction market news LIVE appeared first on ReadWrite.

Nevada gaming regulators are asking a state court to hold prediction-market operator Kalshi in contempt, saying the company continues to allow access to sports-related event contracts from within Nevada despite an existing court order.

In a filing submitted to the First Judicial District Court and announced on Friday (June 12), the Nevada Gaming Control Board said investigators were still able to place trades from Nevada after a May 18 amended preliminary injunction required Kalshi to block access to sports, election, and entertainment contracts through geofencing measures.

“The Court has required Kalshi to stop offering covered event contracts in Nevada. We will continue to vigorously enforce Nevada law to safeguard gaming in our state,” Nevada Gaming Control Board Chairman Mike Dreitzer said in a statement.

The latest filing marks another chapter in a dispute that began in March 2025, when the board issued a cease-and-desist letter ordering Kalshi to halt what regulators described as unlawful activity in Nevada. At the time, regulators argued that event-based contracts offered by the company amounted to gaming activity subject to Nevada licensing requirements.

Nevada board calls for contempt sanctions against Kalshi over geolocation approach

Nevada maintains that sports event contracts and certain other prediction-market products qualify as wagering under state law and may only be offered by properly licensed operators. Regulators have repeatedly argued that Kalshi’s business model violates several provisions of Nevada gaming statutes.

According to the board, investigators tested the platform multiple times after the injunction took effect and were able to purchase contracts tied to NBA playoff games, Major League Baseball contests, boxing matches, tennis events, soccer games, and other markets while physically located in Nevada.

Much of the board’s argument centers on Kalshi’s reported reliance on IP-address geolocation. Regulators contend that licensed sportsbooks typically use multiple verification tools, including GPS, wireless-network data, and cell-tower information, while Kalshi relied primarily on IP-based checks that failed to accurately identify user locations.

The contempt request follows a series of courtroom setbacks for Kalshi. In March 2026, a federal judge denied the company’s request to pause Nevada’s enforcement action, ruling that “Litigating in state court is not a harm, let alone an irreparable harm.” The case was then returned to Nevada state court.

Later that month, the First Judicial District Court granted a temporary restraining order blocking Kalshi from offering sports, election, and entertainment contracts in the state. Regulators subsequently secured a preliminary injunction against Polymarket US as part of a wider enforcement campaign targeting unlicensed prediction-market operators.

Nevada says it has now obtained restrictions against Kalshi, Polymarket, and Coinbase involving covered event contracts. The board is seeking sanctions that could include disgorgement of profits earned from Nevada-related activity after the injunction or a daily penalty it estimates should be at least $120,000 per day. Regulators are also requesting attorneys’ fees and costs associated with the contempt proceedings.

Featured image: Kalshi / Canva

The post Nevada seeks Kalshi contempt sanctions as prediction market fight escalates further appeared first on ReadWrite.

A new legal fight over prediction markets is unfolding in New Mexico after the United States and the Commodity Futures Trading Commission (CFTC) sued the state, arguing that efforts to stop Kalshi’s sports-related contracts conflict with federal law.

The complaint, filed Friday (June 12) in federal court, centers on a lawsuit brought by New Mexico Attorney General Raul Torrez on June 4. In that case, the state accused Kalshi of operating unlicensed online sports betting and sought to stop the company from offering sports-event contracts to residents.

Federal regulators say the products at issue are event contracts that qualify as swaps under the Commodity Exchange Act and trade on exchanges overseen by the CFTC. According to the filing, Congress gave the agency authority over those markets, creating a nationwide regulatory system that states cannot override.

The federal complaint argues that applying New Mexico gambling laws to those contracts interferes with the CFTC’s exclusive jurisdiction. Regulators also point to the agency’s oversight role, which includes approving exchanges, reviewing self-certified contracts and pursuing enforcement actions.

Growing opposition to Kalshi in New Mexico as the CFTC steps in

The federal case arrives amid mounting pressure on Kalshi from both state officials and tribal governments.

Earlier this year, the Mescalero Apache Tribe, Pueblo of Isleta, Pueblo of Pojoaque and Pueblo of Sandia filed a separate federal lawsuit claiming Kalshi’s sports contracts amount to illegal online sports betting on tribal lands. The tribes contend the products resemble traditional sportsbook wagers and should be treated as Class III gaming under the Indian Gaming Regulatory Act.

“Bookmakers have been providing the same service as Kalshi since at least the late 1700s,” the complaint states.

The tribal lawsuit also argues that Kalshi lacks tribal authorization and permits participation by users who are younger than the minimum age allowed under tribal gaming agreements. Tribal regulators say the company’s offerings closely mirror moneyline bets, point spreads, totals, parlays and proposition wagers.

Meanwhile, New Mexico’s state lawsuit alleges Kalshi marketed itself as a legal sports-betting platform while operating outside the state’s licensing framework.

“Despite looking like a sportsbook, acting like a sportsbook, and proverbially quacking like a sportsbook, neither Kalshi nor any of its subsidiaries have sought licensure from New Mexico’s Gaming Control Board or otherwise abided by the State’s laws governing gambling and gaming within its borders,” the complaint states.

Torrez said the case is intended to protect consumers, gaming regulations and tribal interests.

“New Mexico has a longstanding and carefully balanced system for regulating gaming that protects consumers, ensures accountability, and respects tribal sovereignty,” said Attorney General Torrez in a separate release.

Federal regulators say similar disputes have emerged in several other states. Their lawsuit asks the court to declare that New Mexico gambling laws cannot be applied to transactions on CFTC-regulated exchanges and to block state officials from investigating or enforcing those laws against federally regulated event-contract markets.

Featured image: CFTC / Canva

The post Federal government sues New Mexico over Kalshi sports contracts dispute appeared first on ReadWrite.

Honolulu police say a search warrant served at an alleged illegal gambling room on Waimakua Place led to the seizure of drugs, gambling machines and cash Tuesday evening as investigators continued a wider campaign against underground gaming operations across Oʻahu.

The warrant was executed around 5 p.m. by the Honolulu Police Department’s Narcotics/Vice Division Gambling Detail. Officers from the District 2 Crime Reduction Unit, Major Events Division and Specialized Services Division also took part in the operation.

Investigators entered the location as part of an ongoing gambling probe. By the end of the search, officers had recovered illegal drugs, 18 gambling machines and more than $11,000 in cash. Police said all of the items were taken into evidence for further examination.

Honolulu police continue crackdown on gambling rooms amid Waimakua Place raid

No arrests had been announced when the department released details of the case. Authorities also did not disclose what types of drugs were recovered or provide additional information about potential suspects. The investigation remains active.

The latest raid follows a string of similar enforcement actions carried out by Honolulu police over the past year. In March, officers served a warrant at a suspected gambling room along Mala Street in Wahiawa. During that operation, investigators removed 10 gambling machines and seized more than $5,000 in cash.

Earlier this week, police shut down an alleged gambling operation on Hakimo Road in Nanakuli. Officers recovered 14 gaming machines and cash during that search, although authorities did not release the amount of money seized.

Police have also targeted other suspected gambling rooms across the island. A Pearl City investigation resulted in the recovery of 16 gambling machines and cash, while another backroom gambling case later produced the seizure of 16 machines and more than $5,000.

The cases have unfolded as city leaders push for stronger enforcement tools. In 2025, Honolulu Mayor Rick Blangiardi introduced three measures aimed at reducing backroom gambling. One proposal increased penalties based on the number of illegal gaming devices discovered, making larger operations subject to felony-level consequences. Other measures expanded options for police and property owners seeking to remove suspected gambling activity from buildings.

Hawaii continues to maintain some of the nation’s strictest gambling laws and remains one of the few states without a state lottery. Debate over legalized sports betting has continued in recent years, but law enforcement agencies have simultaneously increased efforts against illegal gaming operations.

According to Honolulu police, evidence collected during the Waimakua Place search will remain in custody while investigators review the case. Authorities have not announced criminal charges and have not said whether additional enforcement actions are expected. For now, police say the investigation is continuing.

Featured image: Honolulu Police Department via X

The post Honolulu police seize drugs, cash, and machines in Waimakua Place gambling investigation appeared first on ReadWrite.

Former Commodity Futures Trading Commission Chairman Gary Gensler is urging a federal appeals court to side with Ohio regulators in their fight with prediction-market company Kalshi, arguing that Congress never turned the CFTC into a nationwide sports betting regulator when it passed the Dodd-Frank Act.

In a friend-of-the-court brief filed Thursday (June 11) with the U.S. Court of Appeals for the Sixth Circuit, Gensler challenged Kalshi’s position that certain event contracts fall under federal commodities law in a way that limits state oversight of sports wagering.

“This case boils down to the question of what, if anything, Congress did in Dodd-Frank with regard to sports betting,” Gensler wrote. “The answer—from someone who was there—is that Congress did nothing of the sort.”

The filing comes as Kalshi continues to battle Ohio authorities over its sports-related event contracts. The dispute follows earlier legal clashes in the state, including a ruling in which an Ohio judge rejected Kalshi’s request for injunctive relief and separate proceedings involving a proposed $5 million state penalty. The conflict has become part of a growing national debate over whether prediction markets fall under federal commodities regulation or state gambling laws.

Why Gensler says Congress never intended a federal sports betting regime in Kalshi case

Gensler, who led the CFTC from 2009 through 2014 before later becoming chair of the Securities and Exchange Commission, told the court that Dodd-Frank was designed to address risks exposed by the 2008 financial crisis. According to the brief, lawmakers focused on swaps and other derivatives markets, not sports wagering.

The filing traces the history of commodity regulation and argues that federal derivatives laws have traditionally centered on hedging risk and aiding price discovery.

“Sports bets are very rarely, if ever, about hedging,” Gensler wrote.

A major part of the brief focuses on congressional intent. Gensler argued that lawmakers never discussed shifting authority over sports betting from states to federal regulators. He highlighted the influence of former Senate Majority Leader Harry Reid of Nevada.

“To put the argument in the plainest real-world terms: Senate Majority Leader Harry Reid of Nevada would never have consented to or passively accepted legislation displacing an activity so critical to his state’s economy and politics,” the brief states.

Gensler also said there was no indication during Dodd-Frank’s drafting or implementation that the CFTC would become a national sports betting watchdog.

“There was no mention of sports betting during Amicus’s fifty-four times testifying before Congress as CFTC Chairman, nor did anyone involved in drafting Dodd-Frank speak of making the CFTC a national sports-betting regulator,” the filing says.

The brief notes that Congress gave the CFTC authority to block certain event contracts tied to gaming and cites legislative remarks stating such products could amount to gambling. It also points to ongoing litigation in which the CFTC has defended prediction markets against some state lawsuits while broader jurisdictional questions remain unresolved.

Gensler concluded by invoking a familiar legal principle.

“Congress does not ‘hide elephants in mouseholes,’” the brief says.

Outside the prediction-market debate, Gensler is also known for his later tenure at the SEC, where the agency pursued lawsuits against major cryptocurrency firms and figures, including Coinbase, Kraken, Crypto.com, Ripple, and Consensys.

Brian Quintenz, who was at one point President Donald Trump’s top pick for the CFTC chief role, wrote on X: “Gary Gensler deliberately sought an intergalactic reach for the CFTC through Dodd Frank. Now he’s saying that didn’t mean a few things he doesn’t like. The law is the law. Exchange-traded event contracts, on all things, are within the agency’s jurisdiction.”

Featured image: Third Way Think Tank via Flickr / CC BY-NC-ND 2.0

The post Ex-CFTC Chair Gary Gensler urges appeals court to reject Kalshi federal sports betting claims appeared first on ReadWrite.

ProphetX has received approval from the Commodity Futures Trading Commission to operate as a federally regulated sports-focused exchange in the United States.

The New York-based company said the regulator approved its applications to register as both a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO). Those approvals give the company a path to launch a prediction market platform where users can trade event-based contracts under a federal regulatory structure.

ProphetX becomes the US’s first regulated sports exchange

With the approvals in place, ProphetX said it plans to operate as a direct-clearing prediction market. Users would be able to trade, clear and settle contracts through the company’s platform rather than relying on a separate clearing arrangement.

“This approval positions ProphetX to become the first sports-native direct-clearing prediction market in the United States,” said ProphetX CEO and Co-Founder Dean Sisun. “We can now expand our best-in-class sports event market offerings to millions of Americans across the country while competing on a level regulatory playing field.

“ProphetX thanks CFTC Chairman Selig for his leadership and the Commission’s staff for their work throughout the application process, and we look forward to helping shape the future of prediction markets.”

The company submitted its DCM and DCO applications in November 2025. The decision also comes after ProphetX filed a comment letter in April 2026 responding to the CFTC’s Advance Notice of Proposed Rulemaking on prediction markets.

The rulemaking process has become an important issue across the industry. The CFTC has been gathering feedback on whether and how event contracts, including sports-related markets, should be regulated. The proposal has drawn attention from exchanges, industry groups and other stakeholders as regulators consider the future framework for prediction markets in the United States.

Against that backdrop, ProphetX said its platform is built around a market structure that includes a proprietary Request for Quote Parlay Mechanism. According to the company, the feature allows users to create and price combinations involving multiple events directly with counterparties.

The company said the mechanism borrows from trading methods commonly used in traditional financial markets. It believes that approach can provide greater flexibility while improving transparency and price competition for event-based contracts.

ProphetX also pointed to a longer regulatory history behind its business. The company said its work in the sector dates back to 2018, when it obtained a license in the United Kingdom to operate a peer-to-peer marketplace for sports event trading. It added that it was developing exchange infrastructure for sports contracts before prediction markets gained wider traction in the U.S. sports-event space.

Founded in 2018, ProphetX describes itself as America’s first sports-native prediction market. The company said its technology was designed specifically for sports-based contracts while also providing a foundation for expansion into a broader range of event-driven markets in the future.

Featured image: ProphetX via X

The post ProphetX secures CFTC approval to launch regulated sports prediction exchange appeared first on ReadWrite.

The Big 12 is considering its next move after receiving a warning from the Texas Attorney General’s Office that any attempt to punish Texas Tech over quarterback Brendan Sorsby could lead to significant legal consequences.

A June 11 letter sent to Commissioner Brett Yormark and board chairman Douglas A. Girod argues that sanctioning Texas Tech for complying with a court order would violate the law and expose the conference and its members to major financial risk.

The dispute follows a June 8 temporary injunction in Sorsby v. NCAA. The ruling prevents the NCAA, under specified conditions, from stopping Sorsby from practicing, playing, or otherwise participating for Texas Tech during the 2026 football season.

Judge Ken Curry granted the injunction after finding Sorsby had shown “a probable right to the relief he seeks” and that “the balance of equities is in his favor because of the hardship he would face in the absence of a temporary injunction.”

Big 12 conference response to legal threat and wider debate over Texas Tech

Lawyers representing Texas Tech said they understood the Big 12 was weighing possible action under Bylaw 3.6 because the school continues to support Sorsby as an eligible athlete. The letter argues that such penalties could amount to an unlawful group boycott and create exposure under federal and state antitrust laws, as well as claims involving breach of contract and tortious interference.

According to the filing, potential damages tied to lost football revenue, recruiting setbacks, alumni support, and business relationships could exceed $200 million.

The controversy has intensified because Sorsby’s case stems from gambling-related violations. The NCAA previously declared him permanently ineligible after he acknowledged betting on college football games, including contests involving former school Indiana. Under the court order, he must still sit out the first two games of the 2026 season and comply with treatment and monitoring requirements.

The NCAA has strongly opposed the ruling, saying, “The NCAA strongly disagrees with the court’s ruling in Sorsby’s case and is deeply concerned about the damaging, far-reaching and broadly destabilizing ramifications of this outcome — which undermines and corrupts the integrity of sports.”

Reaction across college athletics has been divided. Nebraska athletic director Troy Dannen has reportedly said his school will not schedule Texas Tech in the future, while other administrators have voiced similar concerns. TCU athletic director Mike Buddie urged a slower approach, saying, “History has taught me, Jay, that for about 72 hours after crazy things happen, you probably just need to take a deep breath and think on things. Not respond emotionally.”

The backdrop is a wider crackdown on gambling-related integrity issues. Federal prosecutors announced charges against 26 people in January in an alleged international point-shaving scheme involving NCAA Division I basketball and Chinese professional games. Prosecutors allege more than 39 players across over 17 schools were involved or targeted.

Shortly after receiving the letter, Yormark issued a statement, sent to ReadWrite, saying the conference was reviewing the concerns raised by the state.

“Shortly before the start of today’s Big 12 Executive Board meeting, the Conference received a letter from the Texas Attorney General’s office notifying the Conference of potential legal action from Texas Tech if the Conference pursues certain actions under its Bylaws,” Yormark said. “We are taking time with our legal counsel to understand the concerns of the state and will meet again with the full Board next week.”

Yormark said the Executive Board proceeded with its scheduled meeting and discussed the matter in advance of a broader gathering of conference leadership.

“We moved forward with our Executive Board today in preparation for our full Board meeting on Monday. We had a good and informative discussion. Sentiment among the Executive Board was no different from what we heard from the ADs earlier this week,” he said.

The commissioner added that no decision has been made.

Featured image: Cincinnati Bearcats (GoBearcats) via YouTube / Big 12 Conference

The post Texas Tech warns Big 12 sanctions could spark massive liability fight appeared first on ReadWrite.

Michigan regulators say they seized dozens of illegal gambling devices and thousands of dollars in cash during a raid at an Adrian business, the latest move in a wider crackdown on unauthorized gaming activity across the state.

Investigators executed a search warrant June 4 at Games 4 U, located at 2984 Treat Highway, Unit C, in Adrian, according to the Michigan Gaming Control Board. The operation grew out of a joint investigation involving the gaming regulator and the Michigan Department of Attorney General, with assistance from the Madison Township Police Department.

During the search, authorities took possession of 42 slot-style gambling machines and 10 computer-based gambling machines. Officials also seized $8,715 in cash along with 20 gift cards that they said were tied to illegal gaming activity at the business.

Michigan law generally prohibits gambling activity unless it has been specifically authorized. State officials say businesses that operate unlawful gaming machines can face criminal penalties, financial sanctions, or both.

Investigation targets alleged illegal gambling operation in Adrian

The Adrian raid comes as the Michigan Gaming Control Board continues an aggressive enforcement campaign targeting both physical and online gambling operations that regulators believe are operating outside state law.

In recent months, the agency has announced enforcement actions against offshore gambling businesses, including cease-and-desist efforts involving dozens of operators. Regulators have reported action against 45 illegal offshore gambling websites, issued cease-and-desist letters to 12 offshore gambling operators in another enforcement effort, and said they have sent nearly 100 cease-and-desist letters as part of a wider campaign against unauthorized gambling offerings available to Michigan residents.

Michigan Gaming Control Board Executive Director Henry Williams said the agency intends to keep pursuing alleged violations.

“The Michigan Gaming Control Board remains steadfast in its commitment to ensuring compliance with all state gambling regulations,” Williams said in a press release. “We will continue to work diligently to identify and eliminate any illegal gambling activities that pose a threat to the integrity of the industry and the welfare of the public.”

Officials stressed that anyone identified in connection with the Adrian investigation remains presumed innocent unless and until proven guilty in court. The agency said it is committed to respecting the rights of all involved parties and allowing legal proceedings to unfold without prejudging any outcome.

Regulators also encouraged residents to report suspected illegal gambling activity. According to the agency, public tips can play an important role in helping investigators locate unlawful operations and protect consumers from unregulated gambling businesses.

The Michigan Gaming Control Board released details of the Adrian enforcement action on June 10. No criminal charges were announced as part of that announcement, and officials did not identify any potential defendants or discuss possible future court proceedings.

The investigation remains ongoing.

Featured image: Canva

The post Michigan raid seizes illegal gambling machines and cash in Adrian amid enforcement push appeared first on ReadWrite.

The Grand Traverse Band of Ottawa and Chippewa Indians has taken its fight with federal gaming regulators to court, filing a lawsuit that could determine the future of its Crystal Shores Casino in Benzie County, Michigan.

Filed June 9 in federal court in Washington, the case challenges a regulatory policy known as the “one-bite rule.” Tribal leaders argue the policy improperly blocks gaming on land that otherwise qualifies under the Indian Gaming Regulatory Act’s restored lands exception.

The tribe argues that the Benzie Parcel site, where Crystal Shores Casino opened in January 2025, satisfies federal requirements because it was placed into trust after federal recognition was restored and holds longstanding historical and cultural importance to the Band.

Federal regulators reached a different conclusion. According to the complaint, officials determined that the tribe’s “existing gaming facilities precludes a finding” that the Benzie Parcel qualifies under the restored lands exception. Regulators later rejected an amendment to the tribe’s gaming ordinance and issued a Notice of Violation directing the casino to stop operations.

The tribe alleges the requirement “finds no support in the text or purpose of the Indian Gaming Regulatory Act (IGRA)” and is “wholly inconsistent with the NIGC’s and Department of the Interior’s past interpretation of IGRA.”

Tribal casino disputes continue across the country amid Michigan lawsuit 

Court battles over casino approvals are unfolding in several states as tribes, regulators and competing interests continue to contest how gaming laws should be applied.

In Michigan, the Grand Traverse Band says Crystal Shores employs roughly 40 people and provides stable jobs and health benefits in a region where year-round employment can be limited. The complaint states the casino “exemplifies IGRA’s goals of ‘promoting tribal economic development, self-sufficiency, and strong tribal governments.'”

The lawsuit also points to earlier litigation involving Turtle Creek Casino, where courts and agencies recognized the tribe as a restored tribe. According to the filing, the existence of other gaming facilities did not affect those earlier determinations.

Similar legal fights are underway in California. In March, a federal judge paused litigation involving the Koi Nation casino proposal in Northern California while related appeals move forward. Earlier this week, the Picayune Rancheria of the Chukchansi Indians sued to block the North Fork Rancheria of Mono Indians from advancing a planned resort casino in Madera County. Another lawsuit filed by the Yocha Dehe Wintun Nation challenges Vallejo approvals connected to a temporary casino project backed by the Scotts Valley Band of Pomo Indians.

Back in Michigan, federal regulators warned that continued operation of Crystal Shores could trigger civil penalties reaching $65,655 per violation per day.

The tribe is asking the court to strike down the one-bite rule, overturn the Notice of Violation and ordinance disapproval, and prevent future enforcement actions tied to the challenged policy. Local officials have largely supported the casino. Benzie County Sheriff Kyle J. Rosa stated: “Receiving just six calls in a year is almost unheard of for a business the size of the Crystal Shores Casino. I have no concerns about Crystal Shores Casino contributing to crime in any way.”

Featured image: Google Maps

The post Grand Traverse tribe challenges gaming rule threatening Michigan Crystal Shores Casino operations appeared first on ReadWrite.

Florida Attorney General James Uthmeier unveiled the results of a major illegal gambling operation in Southwest Florida and paired the announcement with a warning to payment processors that handle transactions connected to offshore betting sites serving customers in the state.

Over several days in Lee and Collier counties, investigators arrested 11 people, confiscated 479 illegal gaming machines, and recovered $294,150 in alleged illicit proceeds. The operation brought together the Florida Gaming Control Commission, the Office of Statewide Prosecution, and local sheriff’s offices in both counties.

At the same time, Uthmeier released a June 10 letter sent to Visa General Counsel Julie Rottenberg. In that letter, he argued that offshore gambling operators depend on payment networks to process deposits, withdrawals, and other customer transactions. The state says Visa may be providing services to online gambling businesses operating illegally in Florida, including SportsBetting, BetNow, BetOnline, Lucky Rebel, BetUS, XBet, and Bovada.

Florida targets payment processors amid statewide gambling enforcement efforts

State officials described the Southwest Florida action as part of a wider enforcement campaign that has steadily expanded across the state. Recent efforts have included gambling investigations in Manatee County, raids in Sarasota County that resulted in the seizure of 69 machines, and a separate statewide crackdown that removed 623 illegal machines from operation. The Florida Gaming Control Commission has also intensified enforcement activity in multiple regions as authorities continue targeting unlicensed gambling businesses.

“Illegal gambling operations pose a threat to public safety and undermine our compact with the Seminole Tribe, which provides billions of dollars to the state to protect our environmental resources,” Uthmeier said. “These illegal casinos fuel larger criminal enterprises that contribute to drug and human trafficking. We will continue working with our law enforcement partners to shut down all illegal gaming operations across the state.”

The attorney general’s letter argues that Florida law largely restricts gambling to licensed operators and authorized tribal gaming. It also contends that payment processors knowingly facilitating transactions tied to illegal gambling enterprises could face exposure under state money-laundering laws and Florida’s RICO statute.

Uthmeier additionally pointed to the financial impact of illegal gambling. The letter cites an industry estimate valuing the illegal online gaming market at roughly $510 billion annually and claims states lose more than $13.3 billion in tax revenue each year nationwide. Florida’s legal gaming industry, by comparison, generated $241.8 million in slot-machine tax revenue during the last fiscal year.

Since the start of 2026, authorities say they have seized 3,114 illegal gaming machines, recovered about $1.7 million in proceeds, and arrested 81 people.

“I want to thank Attorney General James Uthmeier, Gaming Control Commission Chair Julie Brown, and their respective offices for their partnership in keeping our community safe,” said Collier County Sheriff Kevin Rambosk. “These illegal and unregulated gambling businesses and machines provide zero consumer protections, no guarantee of fair play, and no recourse if an operator simply disappears with their money. Unregulated machines take advantage of customers. Make no mistake–these are not harmless establishments.”

Lee County Sheriff Carmine Marceno said the operation demonstrated coordination among state and local law enforcement agencies.

“This coordinated, multi-agency effort led by the Florida Gaming Control Commission, working alongside the Collier County Sheriff’s Office, and the Florida Attorney General’s Office shows the residents of Southwest Florida that we are a law-and-order state,” Marceno said. “I couldn’t be more proud of the agents, detectives, and prosecutors that worked on this operation.”

Florida Gaming Control Commission Chair Julie Brown said the agency plans to expand its enforcement presence in the region.

“The Florida Gaming Control Commission is grateful for the continued support of Governor Ron DeSantis, Attorney General James Uthmeier, the Florida Legislature, and our law enforcement partners as we carry out this important public safety mission,” Brown said. “Because of that support, the FGCC will establish a new law enforcement squad in Southwest Florida in the coming year, expanding our ability to confront illegal gambling and protect Floridians from those who would exploit our communities for profit.”

Featured image: Office of the Attorney General

The post Florida gambling crackdown nets arrests, machines, and targets payment processors appeared first on ReadWrite.

Texas Attorney General Ken Paxton has issued a new legal opinion concluding that electronic amusement machines can fall under Texas gambling laws when chance plays any part in whether a player receives something of value.

The June 10 opinion came after state Sen. Bob Hall asked for guidance about machines that combine a traditional chance-based game with a separate skill feature.

Under the setup described to the attorney general’s office, a player first inserts money or tokens and receives credits. The initial game resembles a video slot machine. Symbols appear randomly on the screen, and players cannot influence where they land. Whether a player wins or loses depends on the outcome of the spin.

A second feature called “Follow Me” becomes available after a losing spin. In that mode, the machine displays numbers from one through nine, and the player must repeat a sequence generated by the machine. The sequence grows longer as the game continues. Completing 20 numbers in the correct order returns the amount lost during the previous spin.

How the Texas opinion on chance-based elements applies to gambling devices

Paxton’s office noted that the legality of any particular machine ultimately depends on the facts surrounding that device. Even so, the opinion explains how Chapter 47 of the Texas Penal Code generally applies to machines with the characteristics outlined in Hall’s request.

State law defines a gambling device as an electronic, electromechanical, or mechanical contrivance that requires consideration and offers the chance to obtain something of value when the result is determined “solely or partially by chance,” even when skill is also present.

According to the opinion, Texas law and prior court rulings have repeatedly treated any chance element as significant. The attorney general’s office said a game does not need to be entirely based on chance to qualify. Even a predominantly skill-based activity may still meet the legal definition if chance influences whether value can be obtained.

It focuses on the fact that players must first participate in the slot-style game before reaching the skill component. Because entry into the second mode depends on the outcome of a random spin, the opportunity to recover value remains connected to a chance-driven event.

As a result, the opinion states that machines offering both a chance-based game and a skill-based mode are gambling devices under Chapter 47 “so long as chance plays any role in determining whether the player receives something of value, regardless of the presence of skill.” The office therefore declined to address a separate question involving prizes awarded in games of skill.

The opinion arrives as Texas authorities continue targeting suspected illegal gambling operations. In April, Bexar County deputies raided a location on West Hildebrand Avenue in San Antonio, arresting three people and detaining eight others. Investigators seized about 50 machines and filed allegations including gambling promotion, possession of gambling devices or equipment, and engaging in organized crime. Authorities have said that the investigation remains active.

Featured image: Canva

The post Texas opinion says chance elements can make machines illegal gambling appeared first on ReadWrite.

A new proposal from the Commodity Futures Trading Commission (CFTC) is setting the stage for what could become one of the prediction market industry’s favorite recurring traditions, i.e., arguing with regulators.

The agency has released a 267-page notice of proposed rulemaking, Prediction Markets; Public Interest Determinations, outlining how it intends to decide whether certain event contracts should be prohibited for conflicting with the public interest—a phrase that, as always, promises lively debate over what exactly the public’s interests happen to be.

In response to the plans, CFTC Chairman Michael S. Selig stated: “The CFTC will protect the integrity of our regulated markets without standing in the way of responsible innovation.

“This proposal gives the Commission a durable, transparent framework to identify the contracts Congress directed us to scrutinize while letting legitimate markets move forward.”

It arrives as prediction markets continue their steady extension into sports, politics, and other areas guaranteed to attract attention, controversy, and lengthy legal briefs. It also follows several years of litigation, hearings, and regulatory soul-searching over the CFTC’s authority to oversee event contracts, with virtually every stakeholder insisting that the future of the industry depends on getting the answer right.

The commission is proposing a more flexible framework. Instead of deciding that certain subjects are off-limits on sight, regulators would evaluate contracts based on a variety of factors when determining whether they involve unlawful activity, terrorism, assassination, war, gaming, or any future category that regulators may later decide belongs on that list. Unusually, while murder contracts would be prohibited, an “event contract that settles on whether Bernard Madoff is convicted of securities fraud” appears to be permissible.

How the CFTC wants to draw the line in the prediction markets proposal

The agency’s approach reflects arguments that prediction market operators have been making for years. According to industry participants, event contracts can facilitate price discovery, risk management, and information gathering.

Under the proposal, the central question is whether regulators would examine how the contract functions, how it settles, and whether it creates wider public-interest concerns.

Exchanges seeking regulatory certainty will likely welcome that distinction. Others may view it as a potentially elegant way of calling something “not gambling” while it looks suspiciously like gambling from across the room.

One of the most closely watched sections addresses sports-related markets. The CFTC indicates that contracts tied to professional or collegiate sporting outcomes may not automatically be contrary to the public interest. Markets based on objective settlement criteria, including final scores, point spreads, win-loss records, tournament advancement, and season performance metrics, could potentially qualify.

It also suggests safeguards that might support such products, including market surveillance programs, trading restrictions, and coordination with sports governing bodies. In other words, trust, but verify.

Mick Mulvaney, Executive Director of the advocacy group, Gambling is Not Investing, criticized the CFTC’s proposed Rule 40.11 amendments, arguing sports event contracts are sports betting and should remain subject to state and tribal regulation.

In a statement provided to ReadWrite, he said: “Let’s call this what it is: sports betting.

“It is settled law that states and tribes are the rightful regulators of sports gambling. State and tribal officials have established thoughtful, voter-approved frameworks – complete with age minimums, consumer protections, integrity standards, and tax structures to support investment in community programs.

“Now the CFTC wants to supplant state and tribal law and anoint itself a national gaming regulator, allowing companies to simply route sports betting through federal commodities law and avoid the rules.”

The American Gaming Association also chimed in, with its president Bill Miller, calling it “a mockery of congressional intent.”

However, the regulator is considerably less enthusiastic about certain other categories.

Player injury contracts are identified as raising “serious public interest concerns.” Regulators note that such products could create incentives that conflict with athlete welfare, rely on confidential medical information, and generate disputes over settlement outcomes. Put differently, markets perform many useful functions, but encouraging strangers to monitor MRI reports like earnings releases is apparently not one of them.

The agency also expresses concern about contracts tied to officiating decisions. Markets involving penalties, fouls, replay reviews, or ejections may depend heavily on a relatively small number of subjective judgments and could create risks for competitive integrity. Critics of sports officiating may be shocked to learn that not everyone agrees on every call.

Sports and election contracts aren’t completely off the table in the CFTC prediction markets proposal

The sports discussion may ultimately become one of the proposal’s most contentious elements. If federally regulated exchanges are permitted to offer sports event contracts across the country, state regulators and licensed sportsbooks are likely to argue that federal derivatives oversight is being used to enter territory traditionally governed by state gambling laws.

The agency said that it acknowledges that sports-related information has value beyond wagering. Broadcasters, advertisers, sponsors, fantasy sports operators, and analytics firms may all benefit from the pricing information these markets generate. Whether that observation settles the debate is another matter entirely.

Politics represents an equally significant fault line.

In language likely to draw attention, the proposal states that “political elections are not gaming.” Many previous disputes over election contracts have centered on whether such markets belong within the statutory definition of gaming.

The commission argues that elections differ fundamentally from recreational games. In its view, election outcomes are determined by voter decisions rather than the luck, skill, or athletic performance that characterize sporting contests and other traditional games.

Supporters of political prediction markets will view that reasoning as validation. Opponents will likely continue raising concerns about manipulation, misinformation, and the wisdom of turning democratic outcomes into tradable assets. The fact that both sides are certain they are defending democracy should surprise no one.

Regulators reject the notion that an activity becomes gaming simply because participants risk money on an outcome. Instead, gaming is tied to activities designed primarily for recreation or entertainment, operating under established rules and producing measurable outcomes that depend on luck, skill, or athletic ability.

Federal authority faces another test

Another major issue involves federal preemption.

The commission states that prediction markets operating as swaps or futures fall within the federal derivatives framework. The proposal argues that Congress grants the agency exclusive jurisdiction over such products and warns against a “patchwork of 50 state regulations”—a phrase that regulators in Washington often use when describing federal authority and that state regulators often hear somewhat differently.

It is unlikely to pass without resistance.

State regulators, commercial gaming operators, and tribal governments are all expected to scrutinize the proposal closely.

“The original rule didn’t allow the CFTC to ban certain types of prediction contracts that the CFTC determines are against the public interest. That is how Kalshi was able to win against the CFTC in their original lawsuit, which opened the floodgates. If the case had been litigated under this proposed rule, Kalshi might have lost.” – Peter Sanchez Guarda, former CFTC Special Counsel

The CFTC draws attention to the Indian Gaming Regulatory Act, tribal-state compacts, and the importance of gaming revenue to tribal communities. Nevertheless, it maintains that event contracts traded as derivatives belong within the federal regulatory sphere. Tribal governments and other stakeholders are being invited to submit comments, which is regulatory shorthand for “the conversation is just beginning.”

The regulator’s role in prediction markets has already been tested in court. Recent litigation involving prediction market operators has elevated questions about the agency’s authority and helped fuel a broader debate over where derivatives regulation ends and gambling regulation begins.

Former CFTC Special Counsel Peter Sanchez Guarda told ReadWrite the proposal appears to reflect a strategic retreat from some of the agency’s earlier legal battles.

“It seems like they are trying to do as much as possible to promote prediction markets and abandon the fight for territory that they know they will lose in court,” Sanchez Guarda said.

He said prediction market advocates have advanced the view that “you can trade anything on an approved DCM and the CFTC has exclusive jurisdiction over it,” including products that resemble casino games. But, he added, that theory has already faced judicial scepticism.

“The derivatives markets have always been about hedging and price discovery, so things that don’t have those elements don’t belong there,” he said. “A roulette wheel doesn’t hedge any commercial risk, and there is no price discovery.”

Sanchez Guarda said the proposed rule partly reflects that concern by moving toward a contract-by-contract review. In his view, the CFTC gave prediction market supporters “part of what they wanted” by defining gaming and taking the position that many sports contracts may be suitable for prediction markets. But he said the agency had stopped short of drawing a bright line.

“What is surprising is that rather than a clear line, the CFTC will decide on a case by case basis which contracts are acceptable and which ones aren’t, based on a list of factors,” he said.

He added that the proposed framework could have changed the legal posture of earlier disputes over event contracts.

“If the case had been litigated under this proposed rule, Kalshi might have lost,” Sanchez Guarda said.

Former General Counsel of the CFTC Rob Schwartz wrote on X: “The final version ultimately will be challenged in court, but whatever you think about event contracts, the existing rules are problematic. 

“The statute is filled with undefined terms whose meaning has been left to the eye of the beholder. Again leaving policy choices aside for the moment, putting meat on the bones will be helpful to the public, the Commission, and its staff.”

Public hearings have exposed similarly sharp divisions among regulators, academics, industry participants, and critics. Depending on whom one asks, prediction markets are either powerful forecasting tools, innovative financial products, a new form of wagering, or all three before lunch.

For the CFTC, the proposal appears to reflect an effort to get ahead of unregulated and offshore markets before they gain a foothold.

What happens during contract reviews

The proposal also addresses the review process for self-certified contracts.

Under the framework, the Commission could initiate a 90-day review when a newly listed contract appears to involve one of the specified activities and may conflict with the public interest. That means trading could begin before the review is completed.

Although regulators could request that trading be paused, platforms would not be required to comply.

Supporters, such as the Coalition for Prediction Markets, argue that this prevents regulators from delaying innovation indefinitely and provides exchanges with greater procedural certainty. Critics counter that potentially problematic contracts could attract substantial trading volume before regulators reach a final determination. As with many regulatory debates, both sides are convinced they are defending market integrity.

The proposal also preserves the commission’s authority to identify additional comparable activities through future rulemakings. This may help regulators adapt to new products. But it may also ensure that lawyers remain gainfully employed for years to come.

UPDATE: Comments from Peter Sanchez Guarda added on June 11, 2026.

Featured image: G. Edward Johnson via WikiCommons / CC BY 4.0

The post Not everything you can bet on is gambling, says CFTC in new prediction markets proposal appeared first on ReadWrite.

FanDuel Predicts is widening the range of event contracts available on its platform through a new agreement with Crypto.com and its CFTC-regulated exchange and clearinghouse, OG Prediction Markets.

The company announced the partnership Tuesday (June 9) in Chicago, saying customers will gain access to additional sports and entertainment contracts as well as combination event contracts. By adding products from OG Prediction Markets alongside existing offerings from CME Group, FanDuel Predicts expects to significantly increase the number of markets available for trading.

“FanDuel Predicts was built to deliver a best-in-class prediction market experience to our customers,” said James Cooper, Senior Vice President, Flywheel and New Ventures at FanDuel. “These additional product sets give our customers more choices by expanding the breadth of sports and entertainment contracts on our platform.”

The latest move builds on FanDuel Predicts’ recent rollout and broader expansion strategy. Earlier this year, FanDuel launched its dedicated prediction markets app through its joint venture with CME Group and later expanded availability into 18 states. Parent company Flutter Entertainment has also signaled growing interest in regulated prediction markets as it looks to increase customer engagement beyond traditional sports wagering products.

New FanDuel Predicts and Crypto.com products arrive ahead of the World Cup

According to the company, customers will begin seeing contracts sourced from both CME Group and OG Prediction Markets this week, timed to coincide with the start of the World Cup. FanDuel said the addition should also create more opportunities for users interested in trading combinations of event contracts across different categories.

Crypto.com said the agreement allows FanDuel Predicts to tap into its regulated exchange and clearing infrastructure as the platform continues to expand.

“We are thrilled to partner with FanDuel Predicts to bring a new level of depth and experience to its prediction markets experience,” said Joe Anzures, Chief Business Officer of Crypto.com. “By leveraging our robust, regulated exchange and clearinghouse infrastructure, we are enabling a mainstream prediction markets experience just in time for the World Cup – underscoring our capability to deliver scalable, regulated derivatives infrastructure for the world’s biggest moments.”

FanDuel Predicts operates nationally and offers contracts tied to financial benchmarks and economic indicators, including the S&P 500, Nasdaq-100, energy prices, gold, cryptocurrencies, GDP and CPI. In states where FanDuel does not provide sports betting, the company says that users can also trade contracts connected to sports and entertainment outcomes. Contracts are priced between $0.01 and $0.99, allowing customers to buy or sell positions based on whether they believe a specific event will happen.

The platform is run by FanDuel Prediction Markets, a joint venture between FanDuel Group and CME Group. The company stated that contracts available through FanDuel Predicts are listed on the CME Group and Crypto.com derivatives exchanges and remain subject to oversight by the U.S. Commodity Futures Trading Commission. Accounts are opened through FanDuel Prediction Markets LLC, a registered futures commission merchant and member of the National Futures Association.

Featured image: FanDuel / Crypto.com via press release

The post FanDuel Predicts extends event contracts through Crypto.com partnership before World Cup appeared first on ReadWrite.