Marves Fairley pleaded guilty Thursday (May 28) in federal court in Brooklyn, a major development in the widening sports betting investigation that has drawn in gamblers, intermediaries and former NBA figures.

During a change-of-plea hearing before U.S. Magistrate Judge Joseph A. Marutollo, Fairley entered guilty pleas to two counts in the NBA case and five counts in a separate suit, including sports bribery, conspiracy to commit wire fraud and wire fraud. In the latter case, he admitted to placing wagers and recruiting and bribing college basketball players to underperform in games in a separate NCAA point-shaving case brought by federal prosecutors in Pennsylvania. Assistant U.S. Attorney David Berman appeared for the government, while Eric Siegle represented Fairley.

Court records show Fairley was sworn in before entering the pleas. The court determined he was competent, understood the charges and consequences, and entered the pleas knowingly and voluntarily. The court also found an independent factual basis supporting the pleas and recommended that they be accepted.

Earlier in the day, Fairley signed a consent form agreeing to have the plea proceeding conducted by Marutollo rather than a district judge. In that filing, he acknowledged that “I will suffer no prejudice if I refuse to consent.” The document also stated that if consent were withheld, “the District Court Judge assigned rather than the Magistrate Judge will conduct the plea allocution.”

Fairley pleads guilty as the NBA betting case continues to expand

Federal prosecutors allege Fairley was part of a network that obtained non-public information about basketball games and player availability before placing wagers.

According to an October 2025 indictment, Fairley, also known as “Vez,” “Vezino” and “Vezino Locks,” was among six defendants charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. Investigators say confidential information involving NBA players and games was shared among bettors and associates before it became public.

The case has touched several prominent names. Prosecutors have described alleged activity involving former Charlotte Hornets guard Terry Rozier and former Toronto Raptors player Jontay Porter. Separate reporting and court filings have also linked former NBA player Damon Jones to allegations that he sold or attempted to sell non-public injury information.

Court documents cited by prosecutors reference insider information shared about Lakers star LeBron James and Anthony Davis. In one alleged exchange, a participant wrote, “Hit me asap got one for u dude say he got some info,” before information was passed along to Fairley. Another payment allegedly carried the message, “fee.”

The indictment also quotes messages that prosecutors say were exchanged among participants, including, “I lost that s*** on [Betting Company 1] ima give you a lite sack when I see u.” Another cited communication stated, “Address for wire.”

The wider investigation continues to evolve. On Thursday, prosecutors filed additional charges against Rozier, alleging he accepted a bribe connected to a March 2023 game exit that allowed bettors to profit from proposition wagers. Rozier has denied wrongdoing and continues to fight the case.

Fairley’s sentencing is scheduled before U.S. District Judge LaShann DeArcy Hall on February 24, 2027, at 10 a.m. in Brooklyn federal court. His attorney said Fairley “deeply regrets and is ashamed of his conduct.”

Featured image: Marves Fairley via TikTok / Canva

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Kalshi is asking a federal court to stop Minnesota from enforcing a new law that would make categories of prediction markets a felony offense. The lawsuit was filed Wednesday (May 27) in the U.S. District Court for the District of Minnesota and seeks emergency relief before the measure takes effect on August 1.

The New York company runs a federally regulated derivatives exchange where customers buy and sell event contracts tied to real-world outcomes. Kalshi maintains those contracts are overseen by the Commodity Futures Trading Commission, or CFTC, and says state officials cannot ban activity that federal regulators permit.

Named as defendants are Minnesota Attorney General Keith Ellison, Gov. Tim Walz, and Jon Anglin, who leads the state’s Alcohol and Gambling Enforcement Division. Kalshi wants the court to declare the law invalid as applied to its exchange and block enforcement of both the new measure and existing state gambling laws against the company.

Kalshi argues Minnesota felony ban violates federal law

The legal fight focuses on SF 3432, a bill Walz signed on May 26 after advancing through the Minnesota Legislature. The law creates felony penalties for operating, supporting, marketing, or advertising certain prediction market activity. Its reach extends to markets involving sports, elections, legal proceedings, public figures, wars, emergencies, popular culture, and other future events.

In the complaint, Kalshi argues Minnesota enacted a law that “impermissibly usurps the CFTC’s exclusive jurisdiction” by prohibiting event contracts traded on federally designated exchanges. The company says that once the law becomes active, it “will be deemed a felon in Minnesota for offering certain event contracts” that federal law allows.

According to the filing, the Commodity Exchange Act gives the CFTC “exclusive jurisdiction” over event contracts listed on designated contract markets. Kalshi argues Congress reserved for the federal agency the authority to determine whether specific contracts should be barred on public-interest grounds.

The company says Minnesota’s approach creates a direct conflict between state and federal authority. The complaint argues the law “purports to assert concurrent state jurisdiction over the trading of event contracts on DCMs” and would impose criminal penalties on Kalshi “for acting in accordance with federal law.”

Kalshi also points to recent court victories in similar disputes. The filing highlights a ruling from the U.S. Court of Appeals for the Third Circuit, which found that because “Congress gave the CFTC exclusive jurisdiction over trades on DCMs,” federal law overrides state attempts to regulate those transactions.

Beyond federal preemption, Kalshi challenges the law’s advertising restrictions. The company contends Minnesota cannot criminalize speech promoting products that remain lawful under federal rules. The complaint states the measure “creates distinct felonies for complying with federal law and exercising First Amendment rights.”

The lawsuit follows a separate CFTC action challenging an earlier version of Minnesota’s prediction market legislation. Kalshi argues the state continues to push into an area Congress assigned to federal oversight and warns that restricting access in Minnesota would “irreparably impair Kalshi’s viability as a 50-state derivatives exchange.”

Featured image: Kalshi / Canva

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A coalition of tribal organizations and federally recognized tribes is asking a federal appeals court to overturn a ruling that temporarily blocked Tennessee from enforcing its sports wagering laws against prediction market operator Kalshi.

The filing, submitted Tuesday (May 26) to the U.S. Court of Appeals for the Sixth Circuit, backs Tennessee Attorney General Jonathan Skrmetti and state officials in their challenge to a preliminary injunction granted to Kalshi. Tribal groups argue the company’s legal position would weaken tribal sovereignty, disrupt long-standing gaming regulations, and erode revenue that supports tribal governments.

The coalition includes more than 25 groups such as the Indian Gaming Association, the National Congress of American Indians, the United South and Eastern Tribes Sovereignty Protection Fund, regional tribal gaming groups, and tribes from across the country. On the same day, the American Gaming Association also filed its own supporting brief.

Why the tribal coalition says the Tennessee case against Kalshi matters

According to the tribes, Congress created the Indian Gaming Regulatory Act in 1988 to support “tribal economic development, self-sufficiency, and strong tribal governments.” They told the court that gaming revenue has become a critical source of funding for jobs, healthcare, housing, education, public safety, and other government services.

The brief argues that “Kalshi has brazenly entered onto state and tribal lands across the nation to conduct unregulated gaming with its so-called ‘legal sports betting’ app.” Tribal groups further contend that the company is “siphoning away vital tribal and state governmental revenue to its owners’ pockets.”

Kalshi claims that sports-event contracts offered through its platform fall under the Commodity Exchange Act and federal oversight by the Commodity Futures Trading Commission rather than state gambling laws.

Tennessee strongly disputes that argument. In a separate filing, the state said federal swap regulations created after the 2008 financial crisis were intended for complex financial instruments, not sports wagering. Attorney General Skrmetti said, “Kalshi can call their bets ‘swaps’ all they want, but everyone who so much as glances at the platform understands that this is sports gambling.”

The legal battle is unfolding beyond Tennessee. Earlier filings in Ohio drew support from more than 20 tribes and several tribal associations, which argued that allowing federally regulated prediction markets to operate on tribal lands without tribal consent would upend the framework established under IGRA.

Connecticut’s Mohegan Tribe and Mashantucket Pequot Tribal Nation have also sought to join a separate federal case involving sports-event contracts. The tribes told a federal court that, “Prediction markets are currently offering wagers in Connecticut that amount to traditional sports betting in all material respects.”

The Tennessee tribal coalition warns that accepting Kalshi’s interpretation would effectively dismantle key portions of federal Indian gaming law without any clear action from Congress. The brief argues that such a result would “amount to a sub silentio reversal of congressional policy and Supreme Court precedent” while allowing the company to bypass tribal and state regulatory systems. The coalition is urging the Sixth Circuit to reverse the injunction and preserve existing gaming protections.

Featured image: Kalshi / Canva

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Kalshi has rolled out a new political benchmark that tries to capture the balance of power between Democrats and Republicans in a single number.

The product, called the Kalshi American Power Index, or KPOW, is now available on the company’s platform. Kalshi says the index combines current political control with market expectations about where power is likely to move next, creating a continuously updated reading of the U.S. political landscape.

Announcing the launch, founder and chief executive Tarek Mansour argued that the flood of political data has made it harder to understand the broader picture.

“The American Power Index (KPOW) is live,” Mansour wrote in a social media post. “One number, oscillating between Republicans and Democrats throughout the endless contest for power.”

How the Kalshi American Power Index works

KPOW runs on a scale from +50D, representing the strongest Democratic position, to +50R, representing the strongest Republican position. Kalshi says the measure blends institutional realities, such as who currently holds power, with signals from prediction markets about future outcomes.

The company places greater emphasis on forecasts than present conditions. According to Kalshi, 75% of the score comes from forward-looking market expectations, while 25% reflects current political control.

“The ‘future’ leg captures where markets believe political power is heading; the ‘current’ captures where it actually stands today,” Kalshi said in materials accompanying the launch. “Blending the two at 75% on future and 25% on current produces an index that moves meaningfully with market sentiment while remaining anchored to certified political reality.”

Mansour said the goal is to create a single gauge that adjusts as events unfold rather than forcing observers to track numerous disconnected indicators.

“The index captures the wave: a unified aggregate metric that updates as the world changes,” he said.

The launch arrives as prediction markets face growing scrutiny from regulators and lawmakers. Earlier this year, Kalshi announced new safeguards designed to stop politicians, candidates, athletes, referees, and sports personnel from trading in markets connected to events they could influence. The company also disclosed enforcement actions against three political candidates it said violated exchange rules by trading on markets tied to their own campaigns, resulting in suspensions and financial penalties.

At the same time, lawmakers have introduced the BETS OFF Act, legislation aimed at restricting markets linked to government actions and other events where insiders may possess advance knowledge. Sen. Chris Murphy, one of the bill’s sponsors, criticized such contracts, saying, “These are fundamentally corrupt markets. They are rife with insider trading, and they offer incredibly perverse incentives, especially inside the government.”

Against that backdrop, KPOW marks Kalshi’s latest effort to spread beyond individual event contracts and build indicators from prediction-market data, even as debate continues over how those markets should be regulated.

Featured image: Kalshi via X

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Federal regulators are stepping into an escalating court battle over prediction markets, backing Kalshi’s challenge to Rhode Island’s attempt to block sports-related event contracts.

On Thursday (May 28), the Commodity Futures Trading Commission and the United States asked to intervene in a case pending in the U.S. District Court for the District of Rhode Island. The filing focuses on what federal officials describe as a jurisdictional conflict between state gaming regulators and the federal framework governing derivatives markets.

According to the motion, the central question is “whether Rhode Island state officials can usurp the CFTC’s jurisdiction and enforce state gaming laws against federally regulated exchanges in connection with the listing of federally regulated event contracts.”

Kalshi, which operates as a CFTC-regulated exchange, sued Rhode Island last week over efforts to restrict trading tied to sports outcomes. Rhode Island later launched its own enforcement case against both Kalshi and prediction market platform Polymarket.

CFTC response to Rhode Island actions against Kalshi

In the proposed complaint, federal officials say Rhode Island claims that “Kalshi and Polymarket facilitate gambling (specifically sports wagering) in Rhode Island by allowing bettors to place wagers on the outcome of sports matches and individual player performances, under the guise of ‘trading’ ‘event contracts’ on ‘prediction markets.'”

State officials are seeking to halt those offerings within Rhode Island. The filing adds that Attorney General Peter Neronha characterized the goal of the state’s lawsuit as a demand that “Kalshi and Polymarket stand down.”

The CFTC argues that such action conflicts with federal law. In the agency’s view, event contracts listed on federally registered exchanges are derivatives products regulated under the Commodity Exchange Act rather than gambling products governed by individual states.

The proposed complaint states: “Rhode Island’s ‘demand’ that CFTC-regulated DCMs ‘stand down’ from offering CFTC-approved financial products intrudes on the exclusive federal scheme Congress designed to oversee the derivatives industry.”

Federal lawyers also pointed to a recent appellate ruling involving Kalshi. As quoted in the filing, the court found: “Because Kalshi’s sports-related event contracts are traded on a CFTC-licensed DCM and depend on event outcomes associated with economic consequences, they fit within the Act’s definition of ‘swaps’ subject to the CFTC’s jurisdiction.”

The Rhode Island case follows a growing series of legal clashes around the country. Recent disputes have involved Arizona, Connecticut, Illinois, Minnesota, New York and Wisconsin, where state officials have questioned or challenged prediction market offerings. The CFTC has increasingly responded by defending its authority and arguing that a patchwork of state restrictions could undermine a single national regulatory system.

In a statement released with the filing, CFTC Chairman Michael S. Selig said state challenges amount to “an onslaught of lawsuits seeking to limit Americans’ access to event contracts and undermine the CFTC’s sole regulatory jurisdiction over prediction markets.”

The agency is now asking the Rhode Island court to allow its intervention and reaffirm what it says is its exclusive authority over federally regulated event contracts and the exchanges that list them.

Featured image: Commodity Futures Trading Commission / Canva

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Fertitta Entertainment plans to buy Caesars Entertainment in an all-cash agreement valued at roughly $17.6 billion, including the assumption of nearly $11.9 billion in debt, the companies said Thursday (May 28).

Under the proposed deal, Caesars shareholders would receive $31 in cash for every outstanding share they own. Company executives said that price represents a sizable premium compared with Caesars’ unaffected share price and 30-day average trading levels recorded in late February.

Caesars’ board unanimously approved the agreement and is urging shareholders to support the transaction. Directors said the immediate cash value offered to investors made the proposal attractive as the company continues navigating uneven gaming demand and intense online betting competition.

If completed, the merger would combine Caesars’ casino resorts, digital gaming brands and loyalty network with Fertitta Entertainment’s Golden Nugget casinos and Landry’s hospitality operations. The combined portfolio would span 60 casino resorts and gaming properties across the United States.

The companies also said the merged business would include sports betting, online casino gaming and poker operations, along with retail sportsbooks at more than 200 third-party locations operating through the William Hill brand. Fertitta Entertainment would also contribute more than 550 restaurant and hospitality venues, including over 450 Landry’s full-service restaurants.

Fertitta says that Caesars Entertainment’s loyalty programs become central focus

Executives said the transaction would significantly increase customer rewards offerings by linking Caesars Rewards with Golden Nugget’s 24 Karat Select Club and Landry’s Select Club. The companies believe the combined loyalty network could help drive repeat visitation across casinos, restaurants, hotels and entertainment venues.

Caesars Chief Executive Officer Tom Reeg is expected to remain in his current role after the acquisition closes. Chief Financial Officer Bret Yunker and President and Chief Operating Officer Anthony Carano are also expected to stay in place.

The companies said the agreement does not include a financing condition. Fertitta Entertainment plans to fund the transaction through a mix of contributed equity, assumed Caesars debt and newly committed financing backed by a consortium of 10 banks.

The deal still requires shareholder approval and multiple regulatory clearances. Caesars shares would stop trading on Nasdaq once the acquisition is finalized. The agreement also contains a go-shop period running through July 11, allowing Caesars and its advisers to solicit and negotiate competing bids from other interested parties.

Caesars has faced mounting pressure in recent quarters as weaker Las Vegas visitation weighed on casino and hotel revenue. The company’s third-quarter results previously reflected softer demand on the Strip and continued challenges competing against larger online betting rivals such as FanDuel and DraftKings.

Industry consolidation has remained a major trend across gaming and sports entertainment. Separate reports this year also drawn attention to growing financial strain on several operators, including discussions surrounding potential franchise relocations and ownership restructuring elsewhere in the broader gaming and sports business landscape.

Featured image: Photo by Jon Sullivan on Pixnio / Fertitta Entertainment

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Kalshi and Arizona gaming regulators want the Ninth Circuit to slow down an appeal that could help define how far federal commodities law reaches into state gambling enforcement. In a joint filing submitted May 27, both sides asked the court to pause briefing while several related appeals already pending before the same circuit are decided.

The request follows oral arguments heard in April involving Kalshi, Robinhood Derivatives and North American Derivatives Exchange. These focus on whether the Commodity Exchange Act gives the Commodity Futures Trading Commission exclusive authority over event contracts offered through federally regulated exchanges.

The parties told the court that any pending appeals “could bear on the questions at issue in this appeal” and argued that waiting for decisions would help produce briefs “that will be most useful to the Court.”

Under the current schedule, Kalshi’s opening brief is due June 8. The proposed pause would keep briefing on hold until 30 days after rulings arrive in KalshiEX, LLC v. Assad, North American Derivatives Exchange, Inc. v. Nevada, and Robinhood Derivatives, LLC v. Dreitzer.

Federal and state conflict intensifies as Kalshi and Arizona regulators’ case is heard in the Ninth Circuit

On May 21, 2025, the Arizona Department of Gaming sent Kalshi a cease-and-desist letter. Regulators claimed the company was illegally offering “event wagering” without “licensure and compliance with Arizona statutes and regulations.”

Kalshi responded by filing suit in federal court on March 12, 2026, against Arizona gaming director Jackie Johnson and Attorney General Kristin Mayes. The company argued that federal law preempts Arizona from regulating contracts traded on federally approved Designated Contract Markets.

Days later, Kalshi sought emergency relief through a temporary restraining order and preliminary injunction. Arizona then filed a criminal information against the company in state court the same day.

The legal fight widened further when the Commodity Futures Trading Commission and the United States filed their own federal lawsuit on April 2. Federal lawyers asked the court to block Arizona from enforcing “state laws pertaining to gambling or wagering” against “CFTC-Designated” exchanges such as Kalshi.

A federal judge later denied Kalshi’s separate request for a preliminary injunction, ruling that the Anti-Injunction Act prevented the court from stopping the ongoing state prosecution. Still, the judge also concluded that federal involvement “forecloses Younger abstention.”

Weeks later, the same court granted a preliminary injunction requested by the federal government. The judge determined federal authorities were likely to succeed on their preemption argument and blocked Arizona’s criminal case from moving forward while litigation continues.

Arizona now has until July 6, 2026 to appeal that ruling.

In the latest filing, both sides argued that pausing the current appeal would promote efficiency while avoiding overlapping arguments. They also indicated that if Arizona challenges the federal injunction, they may ask the Ninth Circuit to coordinate both appeals together.

Featured image: Kalshi / Canva

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The Commodity Futures Trading Commission (CFTC) and Gemini Trust Company are now jointly asking a federal court to unwind key parts of a 2025 consent order tied to a yearslong enforcement fight over Bitcoin futures products.

A filing submitted Wednesday (May 27) in the Southern District of New York represents a striking reversal for the agency. The CFTC now says the original case against Gemini never should have moved forward under current enforcement standards for digital asset matters.

“Following President Donald J. Trump’s Executive Order,” the filing states, “multiple U.S. agencies implemented a host of changes, including modifying enforcement approaches and standards for cases involving digital assets.”

The agency said it later completed “a comprehensive review of the evidence and charging decision” and concluded “that the Complaint would not have been filed under the agency’s current standards.” The filing also says enforcement staff “resorted to inappropriate tactics in order to bring this case.”

Internal disagreements surface in the CFTC as it defends Gemini Bitcoin futures

The original lawsuit arrived in 2022 and focused on statements tied to the approval process for Bitcoin futures products launched with the Cboe Futures Exchange in 2017. Regulators questioned Gemini’s comments about prefunding practices, market-maker rebates, self-trading controls and auction trading volume.

Now, the agency says major weaknesses existed throughout the case. According to the filing, the investigation relied heavily on a whistleblower account “known to be lacking in credibility.” The CFTC also acknowledged “serious questions about the strength of the evidence against Gemini.”

Internal messages cited in the motion show deep skepticism among enforcement lawyers before the complaint was approved. One former attorney wrote, “I do not have much confidence in this matter,” while another reportedly called it “a sh***y factual case.”

The filing further claims Gemini itself was defrauded by institutional customers and a former executive through rebate arrangements that allegedly cost the company more than $7.5 million.

The reversal lands during a regulatory shift for crypto businesses. Gemini has faced multiple legal and compliance battles in New York alongside other exchanges including Coinbase, while regulators have simultaneously softened some positions involving prediction markets and digital-asset reporting obligations.

Gemini also continues pursuing expansion through Gemini Titan, a federally compliant prediction-markets platform that has faced regulatory delays and internal corporate turbulence. The latest court filing claims enforcement lawyers improperly delayed a separate Gemini Titan application as leverage during settlement negotiations.

The companies settled the case shortly before trial in late 2024. Gemini paid a $5 million civil penalty under a consent order entered in January 2025.

Now both sides want remaining restrictions removed, including injunctive provisions and limits on Gemini’s future public statements about the dispute.

“Continuing enforcement of the Consent Order’s prospective provisions serves neither the CFTC’s mission nor the public interest,” the filing states.

Featured Image: via Gemini on X

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Federal regulators say a Google software engineer secretly used internal company information to place highly successful bets on Polymarket contracts tied to Google’s annual Year in Search rankings.

The Commodity Futures Trading Commission (CFTC) said Wednesday (May 27) that it filed a civil complaint in federal court in Manhattan against Michele Spagnuolo, a Swiss resident who worked at Google during the period covered in the case. According to the agency, Spagnuolo allegedly accessed confidential search ranking information before Google publicly released its 2025 Year in Search list and then used that information to trade prediction-market contracts.

The complaint says Spagnuolo “acquired sensitive nonpublic information concerning the results of Google’s official Year in Search list for 2025” through his work at Google. Regulators said he was obligated to keep that information confidential and avoid using it for personal gain.

Investigators claim he traded on at least 23 contracts connected to Google search trends between October and December 2025. The contracts reportedly included markets such as “#1 Searched Person on Google this year” and “Top 5 Most Searched People on Google 2025.”

The CFTC alleges that Spagnuolo operated under the Polymarket username “AlphaRaccoon” and consistently bought “Yes” or “No” shares with unusual accuracy. Regulators estimate the trades produced “approximately $1.2 million in profits through his trading.”

Growing scrutiny around insider trading on prediction markets

Prediction-market platforms have continued to spread into politics, sports, entertainment, and cultural events, drawing increasing attention from regulators worried about insider information and market manipulation.

Platforms like Polymarket and Kalshi allow users to buy and sell contracts based on future outcomes. Traders can wager on elections, economic reports, sports milestones, celebrity rankings, and trending search terms. Supporters argue these markets improve forecasting and public information gathering, while critics warn they create opportunities for people with privileged access to confidential data.

Industry discussions around insider trading in prediction markets have intensified over the past year. Analysts and legal experts have questioned whether existing financial-market rules fully cover betting tied to nontraditional information sources, especially when the underlying contracts involve political developments, entertainment trends, or internal company metrics.

Recent reporting on the sector has drawn concerns about how platforms detect suspicious trading activity and whether compliance systems can identify traders acting on confidential information before public disclosures occur. Some critics have argued that prediction-market operators have moved faster than regulators in introducing new event categories and higher-volume trading products.

Kalshi, another major prediction-market platform operating in the United States, recently tightened some of its rules around insider trading risks involving politicians and athletes. The company introduced updated restrictions after criticism from regulators and ethics experts who warned that individuals with direct access to nonpublic information could potentially exploit event contracts for financial gain. The platform subsequently said it had launched about 200 investigations over the past year.

Questions about insider information have also surfaced in international prediction markets. One recent controversy involved unusual trading activity tied to Venezuelan political developments and contracts related to Nicolás Maduro. Market observers pointed to large cash-outs and sharp market swings that fueled speculation about whether some traders possessed information unavailable to the broader public.

Regulators have increasingly signaled that prediction markets will face scrutiny similar to more traditional financial products when authorities believe confidential information may have influenced trading outcomes.

CFTC puts pressure on Polymarket as Google employee investigated

The CFTC said its lawsuit seeks restitution, disgorgement of profits, civil monetary penalties, trading bans, registration bans, and a permanent injunction preventing future violations of the Commodity Exchange Act and agency rules.

“As I have said repeatedly, the Commission will not tolerate fraud, manipulation, or insider trading, regardless of the technology or platform that is used,” said Chairman Michael S. Selig. “Today’s action further underscores our commitment to rooting out insider trading and promoting market integrity in prediction markets.”

Director of Enforcement David I. Miller said workers with access to confidential business information cannot legally use that information for personal financial benefit.

“Employees who are entrusted with confidential business information cannot misappropriate that information for personal financial gain,” Miller said. “As this and other enforcement actions show, the Division is a cop on the beat in policing the illegal use of inside information in the prediction markets and other markets within the CFTC’s jurisdiction. We will continue to take action to protect markets from insider trading and other forms of fraud, abuse, and manipulation.”

The complaint states that Spagnuolo worked as a software engineer at Google during what regulators described as the “Relevant Period.” Investigators allege his position gave him early access to internal search ranking data before the company publicly published its annual Year in Search results.

The civil action was filed in the U.S. District Court for the Southern District of New York.

Federal prosecutors in Manhattan also announced Wednesday that a related criminal complaint against Spagnuolo had been unsealed in the same court. According to the CFTC, the criminal allegations involve conduct similar to the claims described in the civil case.

Featured image: Canva

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A former Department of Justice contractor who admitted stealing and reselling thousands of government-issued cell phones was sentenced Tuesday to a little more than a year in federal prison after prosecutors said he blew much of the money on gambling.

Javan King, 42, of Laurel, Maryland, worked as an information technology contractor in the DOJ’s Civil Rights Division. Investigators said he used that position to order phones the department did not actually need, then quietly sold them to phone resellers for cash. Prosecutors estimated the scheme cost the government more than $1.3 million and generated roughly the same amount in personal payments to King.

Justice Department contractor luxury spending and gambling fueled phone fraud

According to prosecutors, the operation ran from 2021 through 2025 and expanded after the COVID-19 pandemic disrupted normal oversight inside the department. Court filings said the departure of another employee left King with “full control of the device management process.”

Investigators said King regularly submitted fake requests for government phones, claiming they were intended for incoming attorneys, political appointees, or newly hired employees. In one example highlighted by prosecutors, King requested 164 new iPhone 15 lines in June 2025, including 15 labeled only as “extra.”

The Justice Department approved 163 of those phones through AT&T, and the devices were shipped by FedEx to King at DOJ offices in Washington, according to charging documents. Prosecutors said he then sold at least 162 of them to a Tennessee reseller for $170 each.

Court records show King ultimately sold about 4,700 phones to at least nine different reselling companies. One buyer alone purchased more than 3,200 devices and paid King over $950,000 through PayPal accounts connected to the scheme.

Investigators also discovered that King used a personal Yahoo email account to arrange sales and shipments. By the time federal agents searched the account, many of the messages had already been deleted, though prosecutors later recovered copies from one of the resellers.

When one reseller questioned how he obtained such a large number of phones, King tried to explain it away. “I guess that my issue is, I purchase unclaimed storage units that haven’t been paid as my profession,” King wrote in the message cited by prosecutors.

The fraud unraveled in August 2025 after a woman in Kentucky contacted the Justice Department because an iPhone she purchased online was still tied to the agency.

During a January 2026 meeting with prosecutors, King admitted what he had done and acknowledged that he had spent nearly all of the money, “most of it on gambling, specifically at MGM casinos and FanDuel,” according to the government’s sentencing memo. Prosecutors also said he used the proceeds for vacations, private school tuition, and a $92,000 Range Rover purchased shortly before he lost his job.

“King’s theft of thousands of government phones was a brazen betrayal of the public trust that drained taxpayers of more than a million dollars,” U.S. Attorney Pirro said in a statement. “He then squandered the stolen money on gambling, luxury vacations, and a high-end vehicle. He will now be required to repay the very funds he siphoned from the American taxpayer and serve a prison sentence for his crimes.”

King pleaded guilty February 10 to one count of mail fraud before the U.S. District Judge Jia M. Cobb. Prosecutors pushed for a two-year prison sentence, arguing he had transformed the DOJ phone procurement system into “a personal slush fund generator.”

Cobb sentenced him to 12 months and one day in prison, followed by two years of supervised release. King was also ordered to repay $1,319,172.85. Court filings show he has attended Gamblers Anonymous meetings while on pretrial release and told investigators he has been trying to quit gambling.

Featured image: U.S. Federal Bureau of Investigation via WikiCommons / CC BY-SA 4.0

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DraftKings is moving further into federally supervised prediction markets after Railbird Exchange submitted its first group of event contract certifications to the Commodity Futures Trading Commission.

The filings appeared in the CFTC’s Designated Contract Market products database under the name “REX.” They include six binary option templates connected to sports results and player performances: GAMEWIN, GAMESPREAD, GAMEPROPERTY, ENTITYSTAT, ENTITYOUTPERFORM, and ENTITYACHIEVEMENT. Regulators classified the submissions under “Event” and “Binary Option” products after the certifications were filed May 22.

It appears to be the strongest signal so far that DraftKings plans to build a much larger sports-focused prediction market business through Railbird Exchange, the federally licensed exchange operator the company bought last year.

News of the filing first surfaced on X through PredictionMarketPulse, which called the submission Railbird’s “first product certifications with the CFTC.”

DraftKings and Railbird sports contracts move closer to mainstream trading

Several of the newly certified templates closely resemble standard sportsbook wagers, although they would operate inside a federally regulated derivatives structure instead of a state gaming framework.

GAMEWIN and GAMESPREAD appear comparable to moneyline and point-spread betting. ENTITYSTAT and ENTITYOUTPERFORM seem designed for player performance markets, while ENTITYACHIEVEMENT could support contracts tied to records, awards, or statistical milestones.

The products fall under the Commodity Exchange Act and CFTC oversight rather than traditional state sports betting rules, which has increasingly attracted attention as prediction markets carve out an alternative route into sports-related trading across the country.

DraftKings first outlined its plans when it acquired Railbird Exchange in 2025. The deal gave the company direct access to a federally regulated designated contract market license. Around that time, DraftKings announced plans for “DraftKings Predictions,” a separate platform centered on event contracts involving finance, entertainment, culture, and potentially sports.

Since then, the company has continued expanding the initiative. Earlier this year, DraftKings launched DraftKings Predictions across 38 states, including California, Texas, Florida, and Georgia, where conventional online sportsbooks remain unavailable. Rather than routing activity through state gaming agencies, the platform processes customer orders through federally regulated exchanges.

DraftKings also entered a partnership with Crypto.com’s derivatives exchange to increase the range of event contracts available on the platform.

The newest Railbird certifications suggest the company now wants to substantially increase its sports-related offerings as competition intensifies across the prediction market sector.

Companies including Kalshi, CME Group, and Crypto.com have all pushed deeper into sports event contracts during the past year. At the same time, regulators continue debating where prediction markets stop and sports wagering begins.

State gaming regulators have started applying additional pressure as federally regulated markets expand. Nevada authorities recently stepped up enforcement efforts tied to prediction market products, while Bank of America analysts warned regulatory uncertainty could become a growing concern for gaming operators entering the space.

Even so, DraftKings appears committed to the strategy. Although the newly certified templates do not create live markets immediately, self-certification remains a requirement before launching products under CFTC supervision.

Featured Image: Via DraftKings Inc LinkedIn post

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Trump just posted what may be the most aggressively pro-prediction-market presidential rant in modern American history — a sentence that somehow exists now.

In a sprawling Truth Social post, President Donald Trump threw his full support behind prediction markets, declared America the “Crypto Capital of the World,” praised his handpicked CFTC chair, attacked blue-state regulators, and effectively told the gambling-law crowd to get lost.

“It is critically important that the CFTC’s exclusive authority over Prediction Markets is maintained, and that they will thrive,” Trump wrote Monday, framing the industry not as online betting with extra spreadsheets, but as a patriotic financial innovation project.

And just in case anyone missed the message, Trump added that prediction markets are a “new form of Financial Market” that other countries are “after,” because apparently the global race for dominance now includes both artificial intelligence and betting on whether Taylor Swift will attend the Super Bowl.

The post marks Trump’s clearest endorsement yet of the prediction market industry’s favorite legal argument that these platforms are financial exchanges, not sportsbooks in fintech cosplay, and therefore belong under the jurisdiction of the Commodity Futures Trading Commission — not state gambling regulators.

This comes as states across the country have increasingly started looking at prediction markets and asking the uncomfortable question everyone eventually asks after seeing people trade contracts on election outcomes and NBA finals odds: “Wait, isn’t this just gambling with Bloomberg terminals?”

The industry insists the answer is no.

Prediction market firms like Kalshi and Polymarket argue their event contracts function more like federally regulated derivatives than casino wagers. Critics, meanwhile, look at markets predicting presidential elections, inflation numbers, and sports outcomes and conclude society has somehow invented Robinhood for vibes.

Trump, unsurprisingly, is firmly in the first camp.

Enter the CFTC avengers

Trump also reserved special praise for CFTC Chairman Michael Selig, calling him “respected by all” and saying he is “doing a great job.”

In crypto and prediction-market circles, Selig has become something of a folk hero — the rare regulator who doesn’t immediately react to new financial technology the way suburban dads react to TikTok.

His leadership has coincided with a noticeably friendlier federal posture toward prediction markets and digital assets, despite the legal fight over these platforms escalating quickly.

Minnesota recently emerged as one of the first major battlegrounds after state officials attempted to crack down on prediction market activity through gambling enforcement measures. The federal government responded by suing to block the effort, turning what might once have been a niche regulatory dispute into a constitutional cage match over federal preemption.

In plain English: states say “this looks like betting,” while prediction companies say “actually this is sophisticated financial forecasting,” which is a very elegant way of saying people are wagering on the future with charts open.

Trump versus the anti-prediction markets coalition

Naturally, Trump’s post quickly escalated from policy statement to political flamethrower.

“We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules!” Trump wrote, with the sort of capitalization strategy usually reserved for Facebook comments under local-news articles.

New York Attorney General Letitia James has aggressively pursued crypto firms, while governors like Walz and Pritzker have become symbols of state-level regulatory pushback against newer forms of online financial speculation.

To prediction-market supporters, these officials represent an old regulatory worldview trying to shove internet-native financial products into gambling frameworks written when “online betting” meant office March Madness pools.

To critics, however, prediction markets increasingly resemble sportsbooks wearing Patagonia vests.

Prediction markets live in a weird legal uncanny valley between finance and gambling. Users buy and sell contracts tied to future events such as elections, inflation reports, sports outcomes, geopolitical developments. Prices then fluctuate based on probability estimates. Supporters argue these markets improve forecasting and price discovery. However, critics argue they improve the experience of losing money while pretending to be Nate Silver.

The crypto connection gets louder

Trump’s post also suggests that prediction markets are rapidly becoming part of the broader MAGA-tech-finance universe.

Trump explicitly tied the industry to crypto competitiveness, writing that America must remain dominant as “the Crypto (Bitcoin, etc.) Capital of the World.”

Prediction markets increasingly run on crypto infrastructure, stablecoins, and blockchain payment rails. Polymarket, in particular, became one of the defining speculative platforms of the 2024 election cycle, where political junkies, degenerate traders, and extremely online economists all gathered to collectively reinvent election-night anxiety in financial form.

The political connections run deeper, too.

Donald Trump Jr. has ties to both Polymarket and Kalshi, while Trump Media has reportedly explored prediction-market-related ventures tied to Crypto.com. Meanwhile, former Kalshi board member Brian Quintenz had been floated for major regulatory roles.

At this point, the line between fintech startup ecosystem and political coalition is becoming increasingly blurry.

The bigger fight

Underneath the insults, crypto references, and all-caps theatrics is a genuinely consequential legal battle.

If courts ultimately side with the prediction market industry, the CFTC could emerge as the dominant regulator for a category of event-based trading. If states win, prediction markets may face a fragmented patchwork of gambling laws that could dramatically limit growth.

And it appears that the White House no longer sees prediction markets as a weird internet side project populated by poker players and election obsessives. It sees them as finance.

Or at least finance adjacent enough to become part of America’s ongoing culture war over crypto, regulation, innovation, and who gets to profit from humanity’s increasingly unstoppable urge to bet on literally everything.

Featured image: Donald Trump via RawPixel

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Connecticut’s two federally recognized tribes are asking a federal judge to let them join the government’s legal fight over sports prediction markets, arguing the outcome could reshape gambling oversight and threaten a major stream of tribal income.

The Mohegan Tribe and the Mashantucket Pequot Tribal Nation filed a motion Tuesday (May 26) in the U.S. District Court seeking permission to intervene as defendants in a lawsuit brought earlier this year by the U.S. Department of Justice and the Commodity Futures Trading Commission against Connecticut regulators and state officials.

Federal agencies sued Connecticut in April after state regulators ordered companies including Kalshi, Crypto.com and Robinhood Derivatives to stop offering sports-event contracts in the state. Connecticut officials argued the products function as unauthorized sports betting under state gaming laws.

The tribes told the court those contracts closely resemble traditional wagers already governed through tribal gaming agreements and Connecticut regulations.

“The Tribes’ right to regulate and operate gaming is not incidental; it is the product of federal law, sovereign government-to-government agreements, state law, and decades of investment designed to promote tribal self-sufficiency and strong tribal governments,” the tribes wrote in their memorandum supporting intervention.

Connecticut tribes battle against prediction markets

States are disputing whether prediction market companies can legally offer contracts tied to sporting outcomes under federal commodities law while avoiding state gambling rules.

The tribes argued that firms such as Kalshi and Crypto.com are presenting wagers that are “indistinguishable” from sportsbook betting already operating legally in Connecticut. Their filing included examples comparing bets available through tribal sportsbook apps with contracts offered on prediction market platforms.

“Prediction markets are currently offering wagers in Connecticut that amount to traditional sports betting in all material respects,” the tribes wrote.

Connecticut’s sports betting system was established through agreements reached in 2021 that granted the tribes rights connected to online casino gaming and statewide online sports wagering. According to court filings, bettors have placed more than $7.4 billion in wagers since legal sports betting launched in the state, producing roughly $773 million in operator revenue.

The filing said sports betting revenue reached $265.9 million during 2025 alone and helps fund tribal services including healthcare, education, housing and public safety programs.

Governor Ned Lamont and state lawmakers have also moved to tighten restrictions around prediction markets. Earlier this year, Connecticut advanced legislation aimed at clarifying that sports-event contracts fall under the state’s gaming laws rather than commodities regulations.

The legal battle has drawn national attention as several states challenge prediction market operators while the CFTC and Justice Department argue federal law governs the contracts. Connecticut officials support the tribes’ request to join the case, while federal agencies oppose it.

The tribes submitted a proposed response rejecting many federal claims and disputing the argument that sports-event contracts qualify as swaps under commodities law.

Featured image: The Mashantucket Pequot Tribal Nation via X / Mohegan Tribe via site

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Federal inspectors say sports gambling materials were sitting out in the open across several housing units at USP Canaan, according to a newly released watchdog report examining conditions inside the federal penitentiary in Pennsylvania.

Investigators from the Justice Department’s Office of the Inspector General arrived for an unannounced inspection in June 2025 and said they repeatedly encountered betting-related flyers and other gambling materials in inmate common areas.

“We observed gambling flyers under televisions, on tables, and on top of a correctional officer control panel,” the report said. One flyer was “partially covering a Prison Rape Elimination Act reporting poster.”

Inspectors said the activity appeared widespread rather than isolated to one section of the prison. “We observed sports gambling flyers posted throughout the common areas in all five housing units we visited,” the report stated. Investigators also found “a gambling table mat with playing cards,” including “markings for a dealer and for bet placements.”

Concerns over visible gambling contraband activity in USP Canaan

The report described the materials as openly displayed and easy to spot during the walkthrough. “At least one of the flyers was laminated,” inspectors wrote, while others “appeared to be typewritten and photocopied from the same electronic file.” The watchdog added that the flyers “were widespread and unconcealed,” raising concerns about “potential employee awareness and acceptance of inmate gambling.”

Federal Bureau of Prisons rules ban gambling and gambling-related materials inside institutions. The report pointed to agency policies listing “preparing or conducting a gambling pool” and “possession of gambling paraphernalia” as moderate-severity violations that can bring disciplinary penalties, including segregation or loss of good-conduct credits.

Inspectors connected the gambling findings to larger concerns about prison security and contraband enforcement at USP Canaan. According to the report, prison staff recovered 166 weapons between December 2024 and June 2025. During the inspection itself, investigators also found what appeared to be homemade tattoo needles.

Prison leaders acknowledged the dangers tied to organized inmate gambling during interviews with inspectors. According to the report, institution leadership “agreed that inmate gambling can create dangerous conditions in the institution.”

After the inspection, officials said they introduced a housing-unit incentive initiative designed to improve cleanliness and remove unauthorized materials from shared areas. Prison staff later told inspectors they planned weekly inspections and would reward inmates assigned to the cleanest housing unit with commissary incentives.

The prison also issued a notice warning inmates that “sports statistics, gambling information, solicitations, and other advertisements” were prohibited in housing-unit common areas unless approved.

Still, inspectors said documents provided by the prison only showed sanitation rankings for September and October 2025 and “did not demonstrate continuation of the program after October 2025.”

The inspector general ultimately issued nine recommendations, including instructions for the Bureau of Prisons to keep strengthening “contraband detection and removal efforts” at USP Canaan.

Featured image: OIG, June 2025 (Monitor Screen and Brand Logo Obscured)

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More Ontarians are sticking with legal online gambling websites, according to a new Ipsos survey commissioned by the Alcohol and Gaming Commission of Ontario and iGaming Ontario.

The study found that 91.1% of people in Ontario who gamble online now use regulated gaming platforms licensed in the province. This is a jump of 7.4 percentage points from the previous year. Meanwhile, the share of players using only unregulated gambling websites dropped to 8.9%, compared with 16.3% a year earlier.

The findings arrive four years after Ontario launched its competitive online gaming market in April 2022. Before the province created the regulated system, officials estimated that roughly 70% of online gambling activity happened on offshore or unlicensed sites.

Ontario’s market requires operators to meet standards tied to responsible gambling, information security, game integrity, and player protections. Regulators have repeatedly warned that unregulated platforms may expose players to fraud, money laundering risks, and weak consumer safeguards.

“This increase in Ontarians choosing regulated igaming sites proves that we’ve taken the right approach to responsibly expanding the online gaming market,” said Stan Cho, Ontario’s Minister of Tourism, Culture and Gaming. “By prioritizing player protections and embedding responsible gaming tools into the market, our government is committed to providing a safer experience for players across the province.”

Ontario regulators continue tightening oversight despite pushing regulated gambling market

Officials say the province is continuing to build out consumer protection tools as the market grows. Ontario has been developing a centralized self-exclusion system that would allow players to block themselves across multiple gambling operators through a single process instead of opting out site by site.

At the same time, several court rulings have reinforced Ontario’s authority over online gambling activity connected to the province. Recent decisions involving Loto-Québec and offshore operators examined how gambling services offered across provincial and international borders should be regulated. Another Ontario Court of Appeal ruling found that online gambling businesses serving customers outside Canada could still face legal scrutiny in Ontario.

“It’s encouraging to see more and more Ontarians choosing regulated sites when they gamble online,” said Karin Schnarr, chief executive officer and registrar at the AGCO. “This continued shift reflects the strength of Ontario’s model and its focus on protecting players. The AGCO remains committed to addressing the residual illegal market and ensuring regulated operators meet Ontario’s strong regulatory standards.”

The latest numbers also show improvement from earlier surveys. An Ipsos report released in 2024 found that 86.4% of Ontarians who gambled online had used regulated sites, while a 2025 study showed that figure had slipped to 83.7%.

Ontario’s online gaming sector has expanded quickly since legalization, with dozens of licensed operators now active across the province. Regulators still acknowledge that some players continue using both legal and unregulated platforms.

Featured image: Canva

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Federal prosecutors say a Sacramento man collected more than $500,000 through a bogus cannabis investment operation that targeted people he met while socializing at casinos, bars and restaurants across California.

A federal grand jury indicted 49-year-old Keinyatey Deboros Chambers on 10 wire fraud counts tied to the alleged scheme. Court records show Chambers was expected to appear in court Friday for his first hearing in the case, according to the U.S. Attorney’s Office for the Eastern District of California.

Investigators believe the operation stretched from December 2017 through March 2026. Prosecutors said Chambers told potential investors he worked in the cannabis business and promised unusually large profits within a matter of days or weeks if they invested money with his company.

Authorities said those claims were false. Investigators allege Chambers had no legitimate role in California’s cannabis industry and never invested the money the way he promised victims he would.

Investigators probe wider gambling-related crimes amid Sacramento casino cannabis fraud case

According to prosecutors, the money instead went toward personal spending, casino gambling and payments to associates connected to him. Authorities also said Chambers repeatedly pressured victims to invest additional money and encouraged them to recruit friends or relatives into the operation.

The investigation centered on people Chambers allegedly approached during casual encounters at gambling venues and nightlife spots throughout the state. Federal authorities said he used those settings to build trust before persuading victims to hand over money.

California Attorney General Rob Bonta said the case reflects continuing efforts to crack down on financial scams targeting residents.

“The California Department of Justice is committed to safeguarding the public and ensuring a fair, transparent marketplace for everyone,” said Attorney General Bonta in a press release. “To uphold this promise, our team works tirelessly to investigate, expose, and dismantle the complex financial crimes and fraudulent schemes that threaten our communities. Those who exploit trust of innocent people to enrich themselves will face the full consequences of the law.”

The FBI and the California Department of Justice’s Bureau of Gambling Control handled the investigation. Assistant U.S. Attorney Jessica Delaney is leading the prosecution.

The federal case arrives as Sacramento-area authorities continue pursuing other gambling-related crimes. Investigators recently announced the dismantling of an illegal gambling network in the region, while another Sacramento gambling case resulted in a defendant receiving a 301-years-to-life prison sentence after a violent robbery conviction.

Federal officials urged anyone who believes they lost money through Chambers’ alleged operation, or anyone with information tied to the investigation, to contact the nearest FBI office.

If convicted on the wire fraud charges, Chambers could face up to 20 years in prison and a $250,000 fine for each count. Prosecutors noted the charges remain allegations, and Chambers is presumed innocent unless proven guilty beyond a reasonable doubt.

Featured image: Canva

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Malta’s opposition Nationalist Party says it would block any attempt to introduce a European Union-wide online gambling tax, arguing the measure would hurt Malta’s economy and weaken regulated operators across Europe.

Speaking during a European Parliament plenary debate on future EU “own resources,” Nationalist MEP David Casa described the proposal as deeply damaging for member states with large regulated gaming sectors.

“There have been many strange ideas when it comes to own-resources, but this is the worst one so far,” Casa said during his address.

The proposed levy is part of wider EU discussions about creating new funding streams for the bloc’s budget. Parliamentary discussions cited during the debate suggested an online gaming tax could generate between €2 billion ($2.3 billion) and €4 billion ($4.7 billion) annually.

Casa argued the measure would punish licensed European operators while giving illegal and offshore platforms an advantage.

“A tax that will prejudice licensed EU companies, putting them at a competitive disadvantage,” he said. He added that the proposal would end up “pushing them to third countries and consumers to the grey market” where operators “do not pay tax, and who do not offer even the most basic consumer safeguards.”

Concerns shared over Malta’s gaming framework amid European Union gambling tax proposal

European regulators have been increasing cooperation against illegal online gambling networks operating across borders. Regulatory authorities from several European countries recently strengthened joint enforcement efforts aimed at black-market operators, warning that unlicensed platforms create consumer risks and avoid tax obligations.

Casa said Malta’s licensed gaming industry already works under strict supervision and compliance requirements.

“This sector contributes to over 10% of Maltese GDP,” he said. “Respects robust standards and consumer protection and creates high quality employment.”

He also warned Malta remains uniquely exposed to any disruption affecting the sector.

“There is no other member state as exposed as Malta,” Casa said. “We would suffer most from misguided policies that would push business away from the EU.”

The issue also arrives while Malta continues facing scrutiny over Bill 55, legislation designed to shield Maltese gaming companies from certain foreign court judgments. Malta’s Gaming Authority has repeatedly defended Article 56A, arguing the framework protects the country’s regulatory autonomy while remaining consistent with national law.

At the same time, the authority recently confirmed plans to remove the EU’s Online Dispute Resolution platform from local procedures after changes at European level made the system obsolete.

Casa stressed that any new EU own-resources mechanism would still require unanimous backing from member states.

“Let us not waste time, own resources require unanimity,” he said.

He then warned that a future Nationalist government would immediately block the proposal.

“I cannot speak for the present government, particularly since this proposal is socialist led,” Casa said. “But let me be clear, a PN government would veto this proposal. Without hesitation.”

“We will not let anyone dictate to us what is in our sole competence,” Casa said. “Malta will decide on this matter. And we certainly will not be told what to do by any socialist.”

Featured image: David Casa via Facebook

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Michigan gambling regulators are expanding a free program that blocks betting websites and apps after residents quickly claimed most of the first round of licenses.

The Michigan Gaming Control Board said Thursday (May 21) it bought 100 additional Gamban licenses after more than 80 of the original 100 were claimed during the program’s first two weeks. The software is available at no cost to Michigan residents and works across Android, iOS, Windows and macOS devices.

Each license can be used on unlimited household devices, giving users the ability to block gambling platforms across phones, tablets and computers with a single account.

“The response from Michigan residents in the first two weeks of this program exceeded our expectations and speaks to a genuine need in our communities,” said MGCB Executive Director Henry Williams. “We acted quickly to secure an additional 100 licenses so that no resident seeking this kind of support is turned away. Michigan is committed to ensuring that the expansion of legal gaming comes with the strongest possible safeguards for the people we serve.”

State regulators first announced the Gamban partnership in April. Residents can request licenses lasting from one to five years without enrolling in a formal self-exclusion program.

Demand drives expanded Gamban responsible gaming efforts in Michigan

Gamban said its software blocks access to online casinos, sports betting sites, poker rooms, slot platforms, social casinos and cryptocurrency gambling services. The company also says the software restricts access to offshore and unregulated operators that target U.S. consumers.

The expansion comes as Michigan regulators continue balancing the rapid growth of legal online gaming with broader consumer protection efforts. State officials have recently increased enforcement activity against offshore gambling operators accused of offering illegal betting services to Michigan residents.

Earlier this year, the Michigan Gaming Control Board sent cease-and-desist letters to 12 offshore gambling websites, warning the operators to stop accepting wagers from people inside the state. Regulators said those platforms lacked proper licensing and consumer safeguards required under Michigan law.

According to the National Council on Problem Gambling, roughly 2% of Americans meet the criteria for gambling addiction. Michigan officials say programs such as Gamban provide another layer of support for people trying to reduce or eliminate gambling access altogether.

“The strong response to this program tells us that residents want accessible, device-level support — and we intend to keep delivering it,” Williams added. “These additional licenses mean more Michigan residents can take back control, free of charge.”

Residents can obtain the software through the Michigan Gaming Control Board’s responsible gaming resources page by creating a Gamban account and installing the program on their devices. Gamban also offers live technical support to help users complete installation.

The Gamban partnership operates alongside other state responsible gaming programs, including Michigan’s online self-exclusion system, the Disassociated Persons List for Detroit casinos and the “Don’t Regret the Bet” public awareness campaign.

Featured image: Michigan Gaming Control Board

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The Ho-Chunk Nation is reworking its federal lawsuit against prediction market company Kalshi, shifting the case away from a general attack on sports wagering and toward a more focused dispute over tribal gaming law and advertising claims.

In a filing submitted May 22 in the U.S. District Court for the Western District of Wisconsin and seen by ReadWrite, the tribe asked a judge for permission to amend its complaint after part of the original case was dismissed earlier this month. The revised complaint centers on the Indian Gaming Regulatory Act, or IGRA, which the tribe says provides clear legal authority showing Kalshi falsely promotes nationwide legal sports betting.

The case has become one of several major legal fights surrounding prediction markets and sports-related event contracts. Kalshi has argued its products are regulated under federal commodities law through the Commodity Futures Trading Commission, while tribes and state regulators contend the offerings closely resemble sports gambling.

Ho-Chunk Nation re-focuses legal dispute against Kalshi to tribal gaming law

Earlier this month, the court dismissed the Ho-Chunk Nation’s original Lanham Act claim, ruling the tribe had not identified sufficiently definitive legal guidance proving Kalshi’s statements about legality were false. The judge noted courts around the country have issued conflicting decisions involving prediction markets and state gambling restrictions.

The tribe now argues IGRA resolves that uncertainty. According to the proposed amended complaint, class III gaming, including sports betting, is only lawful on tribal lands when it is authorized by tribal ordinance, conducted in a state permitting that activity, and governed through a tribal-state compact.

The filing says Kalshi already unsuccessfully challenged that interpretation during earlier proceedings. The tribe pointed to prior court rulings rejecting Kalshi’s arguments that IGRA does not apply to its conduct, that federal commodities law independently authorizes its activity, and that the Commodity Exchange Act overrides tribal gaming authority.

The Ho-Chunk Nation also claims Kalshi’s marketing language creates confusion because the company advertises “Sports Betting” and “Sports Gaming” while separately describing itself as a derivatives exchange handling event contracts.

According to the filing, Kalshi presents itself as “a New York-based DCM” operating “events contracts” through market makers that “bolster liquidity.” The tribe argues consumers might respond differently if those services were marketed strictly with financial trading terminology instead of sports betting language.

The revised complaint alleges Kalshi’s advertising “misrepresents the nature of Kalshi’s platform and offerings in violation of the Lanham Act.”

The Wisconsin lawsuit is unfolding alongside related actions in Arizona and other states, where regulators, tribal gaming operators, and federal agencies are increasingly clashing over prediction market oversight. The CFTC has separately pursued legal action tied to state-level efforts targeting event contracts, while Kalshi continues seeking dismissal of tribal claims challenging its business model.

Kalshi also recently asked the Wisconsin court to pause its deadline to answer the complaint while the judge considers the amendment request.

Featured image: Kalshi / Ho-Chunk Nation

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Brazilian police arrested Brabet betting platform owner Alberth Cesar Janjon last week as investigators widened a sprawling probe into suspected illegal gambling operations operating across several states.

Officers with the Civil Police carried out the arrest on May 21 at an apartment in the Nova Campinas neighborhood. Authorities said the operation also resulted in the seizure of cell phones, credit cards, luxury handbags, more than 10 watches, and two high-end vehicles tied to the investigation.

Police believe the case is connected to a broader network of online gambling websites that allegedly used influencers and bloggers to attract users with promises of easy profits and guaranteed winnings. According to investigators, the operation may have reached users in São Paulo, Minas Gerais, Mato Grosso, Santa Catarina, Ceará, and Bahia.

Authorities have concentrated much of the investigation on platforms associated with “Jogo do Tigrinho” and other online games of chance that gained massive visibility through social media promotion.

Janjon’s lawyers pushed back against the arrest and said there was no justification for keeping him detained before trial.

The defense informs that this is a case originating from the interior of Ceará, investigating alleged payments made to influencers for the promotion of platforms known as ‘Jogo do Tigrinho’ and other games of chance,” the statement said.

“The defense argues that pretrial detention is entirely inappropriate and disproportionate. The suspect is a businessman, has a fixed address, a known legitimate business activity, and has provided proof of the origin and acquisition of the seized assets.”

Investigation expands across multiple states

Investigators said the enforcement operation also led to the arrest of another man identified as the suspected leader of the criminal organization. Police detained him at Guarulhos International Airport while authorities say he was attempting to leave the country.

Detective Sandro Jonasson, who works with the Narcotics Investigation Division in Campinas, said investigators initially became interested in the group because of the lavish lifestyle displayed by several people connected to the operation.

“This individual flaunted an extremely high standard of living, without an established income, without a credible financial background,” Jonasson said.

Authorities examine influencer involvement

Authorities are now examining the involvement of digital influencers and bloggers who advertised the gambling websites online. Investigators are trying to determine whether those promoters received fixed payments, commissions, or other compensation in exchange for steering followers toward the betting platforms.

Police have not released the total number of suspects who may eventually face charges. Investigators said the inquiry remains active as authorities continue identifying additional participants and tracing the full extent of the alleged gambling network.

Brazil intensifies crackdown on online betting schemes

The case is the latest in a growing crackdown across Brazil targeting online betting schemes that authorities say rely heavily on social media personalities and aggressive digital marketing campaigns to attract users to unregulated gambling platforms.

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