A Florida appeals court has upheld a state law linked to Florida’s gambling overhaul and Seminole Tribe gaming compact, rejecting a challenge from Jefferson County Kennel Club and allowing regulators to move forward with revoking the company’s pari-mutuel wagering permit.

In a June 3 decision, the First District Court of Appeal upheld a lower court ruling that favored the Florida Gaming Control Commission. The judges turned away several constitutional arguments raised by Jefferson County Kennel Club, known as JCKC, over a statute that requires regulators to revoke permits held by pari-mutuel operators that did not possess an operating license during the 2020-2021 fiscal year.

Florida backs permit ruling amid Seminole gaming overhaul

JCKC maintained that the measure functioned as an unconstitutional special law because only a small number of permit holders were affected. The appellate court found otherwise, concluding that lawmakers adopted the provision as part of a statewide effort to modernize gambling regulation after Florida outlawed greyhound racing and entered into a new gaming compact with the Seminole Tribe of Florida.

Writing for the court, Chief Judge Osterhaus said the challenged language was part of the Legislature’s “wider scheme for updating Florida’s regulation of gaming to align with a constitutional amendment and the Gaming Compact.”

The panel also rejected due process challenges. According to the opinion, Florida courts have consistently viewed gambling activity as a privilege granted by the state rather than a protected property right. The judges pointed to earlier rulings and wrote that “[t]here is no constitutional right to conduct a gambling business.”

The court further determined that the revocation requirement bears a reasonable relationship to legitimate government interests. Judges said the law can streamline oversight by reducing the number of permit holders subject to regulation and allowing state resources to be directed toward active operations. In the court’s view, “enhancing administrative efficiency is a permissible legislative goal.”

Another argument centered on procedural due process. The court said the legislative process provided opportunities for public participation and notice. Judges also noted that JCKC received notice of the proposed revocation and had avenues to contest the action through administrative and judicial proceedings.

The court was likewise unpersuaded by claims that the statute interfered with contractual obligations. Although JCKC had pursued a possible transaction involving the permit and obtained a letter of intent from a potential buyer, the judges found no binding agreement existed.

The ruling arrives as litigation tied to Florida’s gaming compact continues to draw national attention. In 2024, the U.S. Supreme Court declined to hear a challenge targeting the Seminole Tribe of Florida’s online sports betting compact after lower courts upheld the arrangement. Before that, the U.S. Department of Justice argued that the dispute did not belong before the nation’s highest court, supporting the position that previous rulings should remain in place.

“For these reasons, the judgment of the trial court is AFFIRMED,” the court stated.

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A bipartisan group of lawmakers wants the federal government to take a much closer look at gambling addiction as online sports betting continues to spread across the United States.

Reps. Dan Goldman of New York and Blake Moore of Utah have introduced the Gambling Disorder Health Study Act, a proposal that would launch a comprehensive federal review of gambling disorder, including its causes, progression and long-term impacts. Researchers would also examine prevention efforts, treatment options and intervention strategies over multiple years.

The legislation comes as legal sports betting has proliferated since the Supreme Court’s 2018 Murphy v. NCAA decision. Supporters of the bill say the number of jurisdictions with legal sports betting has climbed from a single operational state in 2017 to 39 states, plus Washington, D.C., and Puerto Rico by 2025. During that period, annual wagering volume grew from $4.7 billion to roughly $220 billion across sportsbooks and prediction markets.

Under the proposal, up to 10% of federal excise tax revenue generated from state-authorized wagers would be directed toward the study for as many as three fiscal years. The Department of Health and Human Services would also be required to submit annual reports and policy recommendations to Congress.

Federal study to address concerns over gambling addiction

Backers of the measure argue that the growth of mobile betting has outpaced research into its public health consequences. They point to estimates showing that 27% of Americans have an online sportsbook account, with participation particularly high among younger men.

Young men are the demographic most vulnerable to gambling-related harm in the United States, according to a recent report. Lawmakers supporting the study say more than half of men between 18 and 49 have an online sportsbook account, while one-third have used event-based prediction markets for sports wagers.

“Gambling addiction is a growing public health crisis, especially for young men, and the federal government needs to start treating it as such,” said Rep. Goldman in a press release. “This bipartisan legislation is a commonsense first step to help us understand the full implications of the apps and sites that have made gambling readily accessible 24/7; to identify those most at risk of addiction; and to develop strategies to intervene and treat them, just as we do with other forms of addiction. Congress must take a more active role in fighting gambling addiction and pass this bill.”

Moore said the expansion of betting products has created new policy challenges.

“We are in a new age of gambling addiction as sports betting and prediction markets have proliferated into every aspect of life,” Moore said. “Lawmakers and all Americans need to take a deeper look into the causes and effects of gambling addiction so we can best craft real solutions. This bill will go a long way in helping us address this crisis.”

The proposal arrives alongside other efforts to address gambling-related harm. New York recently launched a decade-long study focused on addiction trends and support gaps, while the bipartisan POINTS Act has sought to expand funding for treatment and recovery programs.

The Kennedy Forum, the Foundation on Drug Policy Solutions, the New York Council on Problem Gambling and several other organizations have endorsed the bill.

“As online gambling surges, permeating the lives of Americans, we are increasingly concerned about how this experiment will unfold for those who will inevitably develop dependencies that can hurt families, weaken relationships, harm finances, and destroy mental health,” Finke said. “The Kennedy Forum supports this bill so we can better understand the scope and scale of the issue and help curb the emerging wave of addictions for profit that rely on shame, isolation, and silence to proliferate in our culture.”

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Former Rep. George Santos is disputing allegations that he improperly benefited from prediction-market trading as federal authorities reportedly examine activity connected to his account on Kalshi.

In a June 3 post on X, Santos said he learned through media reports that the Department of Justice could be looking into the matter. He said his attorneys had already contacted federal officials for clarification and that he would cooperate with any requests for information.

“The bases of the accusation is preposterous and I look forward to supplying any information asked of me to any agency that inquires,” Santos wrote.

Reports from NPR, the Associated Press and other outlets say investigators are reviewing trades tied to a market on whether Santos would attend President Donald Trump’s State of the Union address. Kalshi reportedly detected suspicious activity, froze the account in question and referred the matter to the DOJ and the Commodity Futures Trading Commission.

The latest controversy comes months after Santos received executive clemency regarding a fraud case from President Donald Trump. A Justice Department clemency document dated October 17, 2025, shows Trump commuted Santos’ sentence in United States v. Devolder Santos, ordering that it be reduced to time served with “no further fines, restitution, probation, supervised release, or other conditions.” 

The grant applied specifically to the federal offenses covered by the case and was issued under the president’s constitutional clemency authority.

George Santos probe comes amid scrutiny on prediction market trades

Authorities are reportedly examining whether Santos traded using knowledge about his own attendance plans before that information became public. Kalshi’s rules prohibit participants from trading on outcomes they can directly influence, making the case part of a broader debate over insider information in prediction markets.

The attention on Santos comes as the industry faces increasing pressure from regulators, lawmakers and market operators. Earlier this year, Polymarket strengthened its rules across both its decentralized platform and regulated U.S. exchange. The company explicitly barred trading on improperly obtained confidential information, illegal tips and contracts tied to events a trader can influence.

“Markets thrive on clarity,” said Neal Kumar, Chief Legal Officer of Polymarket. “These rule enhancements make our expectations abundantly clear for every participant across both platforms and highlight the compliance infrastructure we have already built. As Polymarket continues to scale, we will build on our foundation with clear communication to Polymarket’s users to ensure our markets do what they do best — surface truth.”

Santos has long spoken favorably about prediction markets. During a March episode of his YouTube show, he argued that the sector would play an increasingly important role in politics and public discussion. At one point, he stated, “It is not a crime to do prediction market.”

The industry has recently faced several high-profile controversies. Polymarket reportedly ended a paid promotional relationship with Santos as scrutiny intensified. Separately, prosecutors charged U.S. Army Special Forces soldier Gannon Ken Van Dyke with using classified information connected to an operation involving Venezuelan leader Nicolás Maduro to place profitable prediction-market wagers. Van Dyke has pleaded not guilty. 

Last week, federal regulators stated that 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.

Santos continues to deny wrongdoing while federal authorities have not publicly detailed the scope of any investigation or announced charges.

ReadWrite has reached out to Kalshi and Polymarket for comment.

Featured image: U.S. House Office of Photography via WikiCommons

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“The first thing to understand is that geolocation controls are risk management controls, not absolute security controls.”

Trevor Horwitz, founder and CISO of TrustNet, neatly sums up the challenge currently facing prediction market platforms such as Polymarket and Kalshi.

Regulators around the world have been stepping up scrutiny of event-based trading platforms, as prediction market operators have been put under the spotlight to see whether they’re doing enough to stop people from circumventing geographic restrictions.

Supporters argue they’re valuable tools that let people put their money behind predictions about everything from elections and economic data to sporting events and global affairs. Critics see things differently, saying the concept is essentially gambling packaged up in a more sophisticated form.

Until recently, that debate was mostly academic. Now, regulators and courts around the world are being forced to weigh in.

“The reality is that it is not realistic for any globally accessible online platform to guarantee that users from prohibited jurisdictions will never gain access.” – Trevor Horwitz, TrustNet CISO and founder

Recent actions in Spain and India show that pressure on the industry is building fast and the question of what prediction markets really are is becoming harder to avoid.

In Spain, the Ministry of Social Rights, Consumer Affairs and Agenda 2030 opened sanction proceedings against Polymarket and Kalshi, alleging that both platforms were operating without the necessary administrative authorization. At the same time, Spain’s gambling regulator, the Directorate General for the Regulation of Gambling (DGOJ), ordered internet service providers to block access to the platforms while the investigation is ongoing.

Spanish authorities argue that prediction markets amount to gambling because users stake money on uncertain future outcomes. Regulators have also raised concerns that unlicensed operators may not provide the identity verification systems, age checks, self-exclusion tools and consumer protections required under Spanish gambling laws.

India has taken a similarly firm stance.

According to reporting by ThePrint, India’s Ministry of Electronics and Information Technology has already issued a blocking order against Polymarket and has been preparing similar action against Kalshi after both platforms continued accepting Indian users despite regulatory restrictions. Indian authorities view prediction markets as incompatible with the country’s online gaming framework, which prohibits real-money online gaming activities.

The same debate is increasingly surfacing in the United States.

In Nevada, the pressure has already reached the courts. In April, Carson City District Court Judge Jason Woodbury granted a preliminary injunction against Kalshi, ordering the company to put geofencing and geolocation measures in place to stop Nevada residents from accessing activities that could violate the state’s gaming laws. The court gave Kalshi until May to roll out those controls and asked the company to explain any delays if it needed more time.

Woodbury also made it clear that, in his view, the sports-related contracts offered on the platform were effectively no different from traditional sports betting under Nevada law.

Taken together, regulators are increasingly asking whether these platforms can actually keep restricted users out.

Why geolocation on prediction markets is harder than it sounds

That may sound straightforward, but experts say it’s anything but.

“What regulators want now is evidence of layered and reasonable controls instead of a perfect solution,” said Julian Gage, a data privacy expert who previously worked on identity verification and geographic access restrictions at Coinbase and Robinhood.

“To prove someone is where they claim to be, you end up collecting liveness scans, device fingerprints and precise location, which can be argued to be against GDPR and other US/global privacy requirements. This means compliance teams will have to balance collecting more data to satisfy access rules and less to satisfy privacy law.” – Julian Gage, data privacy expert

Polymarket says it uses a combination of geolocation, identity verification and other compliance measures to enforce geographic restrictions, including blocking some VPN-associated IP addresses and requiring additional verification from certain users.

The platform is restricted in 33 countries and several other jurisdictions due to regulatory requirements and international sanctions. Although users may attempt to evade those restrictions through VPNs and other tools, no reliable public estimates exist for how many successfully circumvent geographic controls, and platforms generally do not disclose geolocation enforcement metrics.

That’s why many platforms no longer rely on simple IP address checks alone.

Instead, they use a mix of different data points to get a more reliable picture of where a user is actually located. That can include GPS data, device information, browser settings, language preferences, payment details and identity verification records.

The idea is if all of those signals point to the same location, platforms can be more confident that a user is where they claim to be. If the signals don’t match up, it can be a sign that additional checks are needed.

“If someone’s IP says they’re in New Jersey but their device timezone is set to Manila and their language settings are Filipino, that’s a meaningful contradiction,” Husnain Bajwa, vice president of product for risk solutions at SEON, told ReadWrite. “No single signal is definitive on its own and the value comes from checking whether all of them tell the same story.”

According to Dr. David Utzke, CEO and CTO of MyKey Technologies, many operators are now moving beyond traditional geolocation methods altogether. Rather than relying primarily on IP addresses, platforms increasingly use GPS data, Wi-Fi triangulation, cellular network information, device integrity checks and identity verification systems to verify a user’s location.

For regulators, geolocation alone is no longer enough. The focus is increasingly shifting toward proving that a user’s physical location matches their verified identity.

“The ultimate gatekeeper,” Utzke said, is linking location controls directly to a user’s legally verified identity. In some cases, platforms are no longer checking location only when a user signs up. Instead, location may be assessed continuously, including when a trade is placed or a transaction is executed.

The ongoing cat-and-mouse game

Even sophisticated systems face significant limitations.

VPN detection tools have become much better at identifying traffic from major commercial providers. But residential proxy networks remain far harder to detect because they route traffic through legitimate household internet connections. To a platform, those users can look almost identical to ordinary customers.

“A journalist using a VPN for security looks identical to a gambler trying to access a restricted market,” Bajwa said, creating a challenge for both operators and regulators. 

Linda Goldstein, partner at CM Law, said regulators generally view geoblocking and website restrictions as useful enforcement tools, despite their limitations.

“Users in restricted jurisdictions have reported that they can still access international prediction markets through inexpensive VPN services,” Goldstein noted, adding that platforms have responded by strengthening identity verification and monitoring systems.

Commercial VPNs, residential proxy networks, smart DNS services and hardware-spoofing tools continue to create new ways for users to disguise their true location. As platforms improve detection methods, new workarounds quickly emerge.

Geoblocking isn’t just a compliance issue

The impact of regional restrictions extends beyond regulatory headaches. Prediction markets depend on participation. The more people trading, the more liquid and potentially accurate those markets become.

That’s why geoblocking is said to have become more than a technical compliance challenge. It also has implications for the future growth of the industry.

Ryan Kirkley, co-founder and CEO of Global Settlement Network, said restrictions can limit both participation and the diversity of opinions reflected in market prices.

“They’re a bigger issue than many people realize because these markets depend heavily on participation,” Kirkley said. “If large parts of the world can’t access them, you end up with a smaller and potentially less representative pool of opinions driving prices.”

At the same time, he argues that long-term growth will ultimately depend on regulatory clarity rather than simply expanding access.

“If an industry can only scale by operating ahead of regulation, that’s usually a sign that regulators haven’t been convinced of its value yet,” he said. “Long-term sustainable growth will come from clearer rules rather than simply expanding access.”

Not everyone is convinced geolocation blocking on prediction markets work

While most experts describe geolocation compliance as a complex technological challenge, some industry figures argue that the problem is less about technology and more about incentives.

“The geo-blocks are easy to circumvent because the exchanges want them to be. If they genuinely wanted to keep restricted users out, the technology exists to do it. They don’t do it because the leakage benefits them.” – Adam Bjorn, Plannatech CEO

Adam Bjorn, CEO of Plannatech and operator of Prime Sportsbook, believes many restrictions are easier to bypass than regulators would like to admit.

“Not much,” Bjorn said when asked about the impact of geoblocking on the industry’s future growth. “The geo-blocks are easy to circumvent because the exchanges want them to be. If they genuinely wanted to keep restricted users out, the technology exists to do it.”

Bjorn argued that enforcement often falls short because meaningful restrictions would require tighter controls around payments, identity verification and account custody.

“Until someone forces real enforcement at the platform level — payment rails, KYC, custodial controls — geoblocking is theater more than barrier,” he said.

There is one point of general agreement between the experts: keeping restricted users off online platforms is often much harder in practice than it sounds on paper. 

Gambling, finance or something in between?

At the same time, regulators remain divided on a more fundamental question: what exactly are prediction markets?

Some jurisdictions classify them as gambling because participants risk money on uncertain outcomes. Others, particularly in parts of the United States, increasingly view them as regulated financial products.

Stephen Piepgrass, partner leader of regulatory investigations, strategy and enforcement at Troutman Pepper Locke, stated that federally regulated platforms such as Kalshi must comply with know-your-customer and anti-money laundering requirements that do not apply to many offshore prediction markets.

The disagreement over classification is one reason regulators are approaching the industry so differently around the world. While some authorities focus on gambling laws, others are examining prediction markets through the lens of financial regulation, derivatives trading and consumer protection.

The future of compliance

Industry observers expect compliance requirements to become even more demanding in the years ahead.

Regulators increasingly want continuous verification rather than a one-time location check during registration. In other words, platforms may need to prove not only where users are when they sign up, but where they are throughout the life of an account.

Utzke believes that trend will accelerate. He draws attention to tools such as behavioral monitoring, searchable IP audit trails, multi-source geolocation systems and continuous identity verification as examples of the safeguards regulators increasingly expect platforms to have in place.

But stronger verification comes with its own trade-offs. The more location and identity data a platform collects, the easier it may be to demonstrate compliance. At the same time, gathering and storing that information creates additional responsibilities around data security, privacy and user protection.

Prediction markets have attracted growing attention because of their potential as forecasting tools. Yet as the industry spreads, regulators are increasingly treating these platforms less like novel technology products and more like businesses operating in highly regulated environments, with the compliance expectations that come with them.

As Kirkley put it, “Long-term sustainable growth will come from clearer rules rather than simply expanding access.”

Even then, experts agree that no amount of technology will create perfect enforcement.

Horwitz adds: “The more practical objective is to implement a layered, risk-based control environment that makes circumvention difficult, increases the likelihood of detection, and provides defensible evidence that reasonable measures were taken to comply with applicable regulatory requirements.”

However, Bajwa reminds us that “regulators understand that determined actors will find a way in. What they don’t accept is operators who check a box at registration and call it done.”

ReadWrite has reached out to Polymarket and Kalshi for comment.

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A proposal that would require online sports betting companies in New York to send detailed monthly account statements to customers has now cleared both chambers of the state Legislature.

Assemblymember Rebecca Kassay introduced Assembly Bill A10329 on February 20, 2026. After its introduction, the measure was sent to the Assembly Committee on Racing and Wagering for review before moving through the legislative process.

If the bill becomes law, every authorized mobile sports bettor in New York would receive a monthly summary of account activity. Operators would have to deliver the reports electronically through push notifications, and the information would remain available through each bettor’s account.

New York bill calls for sports betting information in monthly statements

The legislation spells out a range of information that sportsbooks would need to provide. The statements would have to show how much money a customer deposited during the reporting period, the total amount wagered, and the overall value of winnings and losses.

The reports also would be required to display a bettor’s net gain or net loss for the month. Lawmakers say the disclosures are intended to give customers a clearer picture of their gambling activity and financial results.

Beyond financial totals, operators would need to disclose the total number of wagers placed during the reporting period. The statements also would have to include the amount of time a user spent logged into the mobile wagering platform.

Any promotional credits, bonus funds, or free bets used during the month would need to be listed separately in an itemized accounting. The bill also adds requirements aimed at increasing awareness of responsible gaming resources.

Monthly statements would be required to contain a “prominent and clear disclosure of responsible gaming resources,” including information about the state’s voluntary self-exclusion program and problem gambling assistance services, according to the legislation.

Another section of the legislation would require operators to make a bettor’s lifetime wagering history accessible. Customers would be able to review long-term account activity in addition to receiving monthly reports.

Sportsbooks would have no more than 15 days after the end of each calendar month to provide the required statements. The New York State Gaming Commission would be responsible for creating regulations covering formatting standards, readability requirements, and any additional disclosures needed to ensure the reports are easy to understand.

The measure would become part of an existing section of state law that already requires mobile sports wagering operators to maintain responsible gaming information and submit annual problem gambling plans.

The Assembly approved the bill on March 24 by a 143-0 vote, with seven abstentions. The Senate passed the legislation on June 2 after substituting Senate Bill S09415. Legislative records show the measure was then returned to the Assembly the same day.

With approval from both chambers now secured, the bill is expected to be sent to Gov. Kathy Hochul for consideration. If signed, New York would become the first state to require licensed online sports betting operators to provide monthly account activity statements. The law would take effect on the first day of January following enactment.

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Qualified buyers have until June 26 to submit bids for Hawthorne Race Course as the historic Illinois racetrack seeks a buyer or investor during its ongoing Chapter 11 bankruptcy proceedings.

Hilco Global is running the sale through its real estate division alongside Province LLC. The offering covers both the operating business and the real estate tied to the property.

Located in Stickney, about 10 miles southwest of downtown Chicago, Hawthorne has been part of Illinois racing since 1891. The site covers roughly 108 acres and includes around 1.12 million square feet of structures. Among them are a grandstand, clubhouse, barns, residential facilities and support buildings with capacity for more than 2,100 horses.

Hawthorne sale effort advances toward June deadline

The marketing effort is being presented as a dual-track opportunity. Potential buyers can pursue Hawthorne as an active racing and gaming operation or consider redeveloping the land for industrial uses.

The track holds several Illinois licenses and entitlements, including rights connected to a possible casino development with up to 2,000 gaming positions, a master sports wagering license, the state’s only harness racing organizational license and an off-track betting network operating 10 locations. Hawthorne also continues to offer Thoroughbred and harness racing, simulcast betting, pari-mutuel wagering and food and beverage services.

At the same time, Hilco and Province say the property’s heavy industrial zoning, large footprint and transportation access could attract logistics, manufacturing and distribution developers. The site sits along Cicero Avenue and is close to Interstates 55, 290 and 294, Midway Airport and major rail intermodal facilities.

“The Chapter 11 process creates a unique opportunity for qualified buyers to acquire an iconic regional asset through a court-supervised transaction structure designed to maximize value and provide execution certainty,” said Adam Rosen, partner at Province LLC. “Hawthorne combines a long-standing operating platform with valuable gaming entitlements and substantial real estate optionality, creating multiple paths for future investment and redevelopment.”

The sale arrives as the bankruptcy case continues to generate disputes beyond the marketing process. Earlier this year, Judge Timothy A. Barnes denied Hawthorne’s request for an emergency hearing connected to a motion seeking additional time to file required financial disclosures, ruling the matter did not qualify for emergency treatment.

More recently, Hawthorne and the official committee of unsecured creditors sought authority to investigate Illinois Department of Agriculture Director Jerry Costello II and others over decisions involving Thoroughbred Fund distributions. Court filings alleged Hawthorne’s share of those funds declined after the bankruptcy filing, though the allegations have not been adjudicated. On May 27, Barnes authorized discovery efforts related to those claims.

“Whether as an ongoing race course and casino or as an industrial redevelopment, few properties in the Chicagoland market combine Hawthorne’s name recognition, scale, location and future potential,” said Madura. 

“With exceptional multi-modal logistics connectivity and strong surrounding market fundamentals, Hawthorne represents a truly rare opportunity to reimagine a landmark asset for its next chapter. Regardless of its future use, this sale is a once-in-a-generation chance to shape one of the region’s most distinctive properties.”

Any transaction remains subject to approval from the U.S. Bankruptcy Court for the Northern District of Illinois.

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Nevada gaming regulators have secured another courtroom win in their campaign against prediction-market platforms, with a state judge granting a preliminary injunction against Polymarket US.

The Nevada Gaming Control Board announced that Judge Woodbury of the First Judicial District Court approved the agency’s request for a preliminary injunction against QCX LLC, which does business as Polymarket US, on May 29. The board disclosed the ruling in a June 1 enforcement update and said a written order is expected later.

The latest decision follows several months of legal battles between Nevada regulators and the prediction-market operator. Earlier this year, the board obtained a temporary restraining order against Polymarket after arguing that the company was offering event-based contracts in Nevada without the licenses required under state gaming law.

“We are very pleased with Judge Woodbury’s ruling and will continue to vigorously enforce Nevada law to safeguard gaming in our state,” stated Nevada Gaming Control Board Chairman Mike Dreitzer.

Nevada legal challenges continue against Polymarket as injunction granted

Nevada officials view sports-related event contracts and certain other prediction-market products as wagering activity. Under the state’s regulatory framework, businesses offering those products must first obtain the appropriate gaming licenses.

The board said it has expanded enforcement efforts beyond Polymarket and has moved against several operators it believes were conducting business unlawfully in the state. Regulators noted that previous preliminary injunctions already prohibit Kalshi and Coinbase from offering or facilitating sports, election, and entertainment event contracts in Nevada.

According to the board, Kalshi’s activities violate multiple sections of Nevada law, including NRS 463.160, NRS 463.350, NRS 465.086, and NRS 465.092.

Polymarket has attempted to challenge Nevada’s actions in court. The company previously sought relief through federal litigation, arguing that federal law governing prediction markets and commodities regulation should limit Nevada’s authority over its operations. However, a federal appeals court determined that jurisdictional issues prevented the company from obtaining the immediate relief it sought.

The operator also asked Nevada’s appellate court to pause enforcement measures while litigation continued. This was rejected, allowing state regulators to move forward with their case and maintain restrictions on the platform during the proceedings.

In its latest update, the Gaming Control Board said it has now succeeded in blocking all known unlicensed prediction-market operators that had been active in Nevada.

The agency also pointed to Nevada’s long-established public policy on gaming regulation. Lawmakers have repeatedly identified the gaming industry as a vital part of the state’s economy and have required extensive licensing and oversight to protect public health, safety, morals, good order, and the general welfare of residents.

With the preliminary injunction against Polymarket now in place and earlier court orders affecting other platforms remaining active, the board said it will continue pursuing companies it believes are operating outside Nevada’s gaming laws while working to protect the state’s regulated gaming industry.

Featured image: Canva / Polymarket

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A sweeping law enforcement operation unfolded across Galveston County on Monday (June 1) as investigators moved to break apart what they say was a long-running illegal gambling network centered in La Marque and surrounding communities.

Members of the Galveston County Organized Crime Task Force began serving 21 search warrants at about 9:30 a.m. on June 1. According to the Galveston County Sheriff’s Office, the coordinated action stemmed from an investigation into suspected organized criminal activity and money laundering connected to illegal game rooms.

Galveston authorities target illegal gambling rooms and financial records

Investigators focused on several game room businesses, related properties in Fort Bend County and a number of financial institutions believed to be tied to the operation’s finances.

Seven warrants were carried out at game rooms in and around La Marque. Those locations included Gold Chest, Pig Pen, TJ’s, Rusty’s, Purple Building and Double Diamond, along with the 24/7 game room in Alvin.

Authorities also searched two properties in Sugar Land. The sheriff’s office said one location was a residence linked to the owner and operator of the Gold Chest game room. Investigators believe the second property, a warehouse, was being used to store and distribute illegal gambling machines.

Another 12 warrants targeted financial institutions as detectives examined the money trail behind the alleged enterprise.

The operation comes as Galveston County agencies continue wider efforts to crack down on illegal gambling. Earlier investigations in the region led to raids on multiple commercial and residential properties suspected of supporting unlawful gaming businesses. During one January operation in Galveston, officers executed search and arrest warrants at five businesses and four homes, seizing gambling machines, cash and electronic records connected to an alleged criminal network.

At the time, Galveston police warned about the impact of such operations. “Illegal gambling operations are often a magnet for secondary crimes, including money laundering and narcotics distribution,” reads the official statement from Galveston Police Department. “Today’s action demonstrates our commitment to maintaining the safety and integrity of our neighborhoods by dismantling these unauthorized operations.”

More recently, a major gambling investigation in neighboring Hitchcock resulted in 33 arrests, the seizure of 749 gambling machines and more than $417,000 in cash, according to authorities. The probe also led to the arrest of Hitchcock Mayor Christopher Armacost on a felony charge of engaging in organized criminal activity. Details of that investigation were reported by ReadWrite.

As Monday’s searches continued, members of the sheriff’s office Major Crimes Unit and Crime Scene Unit remained at several locations gathering evidence. No immediate information about arrests, criminal charges or items seized was released.

Officials said the investigation remains active and additional details will be provided once they become available. Multiple agencies assisted in the operation, including sheriff’s offices from Harris, Fort Bend and Brazoria counties, along with police departments and prosecutors from across the region.

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Illinois lawmakers have signed off on a budget measure that would create what appears to be the first state tax aimed specifically at sports event contracts traded through prediction markets. The provision was included in the wider revenue package contained in Senate Bill 3019, which cleared both chambers on June 1.

Under the legislation, “any wagers offered under this Act shall be subject to incur a transaction tax equal to 1.75% of each exchange wager.” The bill also establishes a higher rate for operators with significant activity. After a licensee reaches five million exchange wagers during a fiscal year, the transaction tax imposed under this subsection shall increase to 3.5% of each exchange wager.

Rather than taxing operator revenue, the proposal is built around transaction volume. Revenue generated by the tax would flow into the Sports Wagering Fund before ultimately being transferred to the state’s General Revenue Fund. The legislation states that the tax “shall be deposited monthly into the Sports Wagering Fund” and outlines the transfer process for certified amounts.

Analysis circulated by Fairplaygov indicates that the measure would apply to sports-based event contracts, while non-sports prediction markets would not be subject to the same tax structure.

Illinois puts prediction markets in the spotlight with new tax

The move lands in the middle of an ongoing fight over who should regulate prediction market products tied to sporting events. Companies operating those markets have consistently argued that their offerings fall under federal oversight through the Commodity Futures Trading Commission rather than state gaming authorities.

Fairplaygov has suggested the Illinois measure could invite another round of legal challenges from the industry. The organization noted that the CFTC has already taken legal action involving Illinois Governor J.B. Pritzker, Attorney General Kwame Raoul, and the Illinois Gaming Board as disputes over prediction market activity continue.

The new exchange-wager language is only one section of a much larger bill. According to the legislative summary, SB 3019 “amends the Illinois Gambling Act” and “amends the Sports Wagering Act,” including revisions involving “the privilege taxes imposed under the Act.”

The package also includes a 10% tax on targeted advertising services, a Digital Asset Tax Act that would impose a 0.2% levy on certain digital asset transactions, and new fees tied to large social media platforms based on Illinois user totals.The prediction market provision arrives as Illinois continues to explore new gambling-related revenue streams. We previously highlighted criticism surrounding other betting tax proposals in the state, including per-bet tax measures that opponents argued could reduce wagering activity and place added pressure on operators and consumers.

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Barry Diller’s People Incorporated has made a move to take MGM Resorts International private, putting forward a cash offer of $48.30 a share for the stock it does not already own.

The proposal, revealed Monday (June 1), values MGM at about $18 billion including debt. If completed, it would hand People control of one of the world’s biggest gaming and hospitality operators. The bid is non-binding and will be reviewed by MGM’s board.

People Incorporated, formerly known as IAC, already holds roughly 26.1% of MGM’s outstanding shares. Under the proposal, it would purchase the remaining shares and turn MGM into a privately held subsidiary. The company said it expects to own slightly more than 50.1% of MGM’s equity after closing, while some investors could keep minority stakes.

According to People, the offer stands 10.6% above MGM’s May 29 closing price and 24.1% above its 30-day volume-weighted average share price. At the time of writing, MGM Resort’s stock was up 15.8%.

The bid reflects Diller’s growing focus on MGM after years spent building media, internet and travel businesses. He has served on MGM’s board and steadily expanded his investment in the company since buying shares during the pandemic downturn.

MGM has become a major asset for People because of its mix of casino resorts and expanding digital operations. The company owns prominent Las Vegas Strip properties, operates regional casinos across the United States, has interests in Macau and Japan, and co-owns online betting platform BetMGM.

“We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real world assets that AI cannot easily replicate or disintermediate and exceptional digital growth opportunities. That conviction has only strengthened over time,” Diller said in a letter to MGM’s Board of Directors.

MGM board begins review of People Incorporated deal

MGM confirmed it received the proposal on June 1 and said directors will evaluate it with financial and legal advisers. The company stressed that shareholders do not need to take any action at this point.

“The Company’s Board of Directors, in consultation with its financial and legal advisors, will carefully review and consider the proposal to determine the course of action that it believes is in the best interests of the Company and all of its shareholders,” MGM said.

The offer arrives during a period of major consolidation across the gaming industry. Just days earlier, Fertitta Entertainment announced a $17.6 billion agreement to acquire Caesars Entertainment, combining casino resorts, digital gaming operations and hospitality assets under one umbrella. This would create a portfolio spanning 60 gaming properties nationwide.

MGM’s recent financial results also showcased why the company remains attractive to investors. For the fourth quarter of 2025, MGM reported revenue of $4.6 billion, up 6% year over year, while net income jumped 87% to $294 million. Growth was helped by strong results in China and expanding digital operations, although investors continued to watch softer performance on the Las Vegas Strip.

People said taking MGM private could allow management to pursue long-term plans away from public market pressures. Discussions remain preliminary, and neither company has indicated that a final deal is assured.

Featured image: Christopher Peterson via WikiCommons / CC BY 3.0 / The U.S. National Archives / S. Clyde

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A Burbank blood-testing laboratory owner who used Medicare reimbursement money to support a gambling habit, pay personal expenses and evade millions in taxes has been sentenced to more than four years in federal prison.

Armen Muradyan, 60, from California, was ordered to serve 51 months behind bars by U.S. District Judge John A. Kronstadt. The court also directed him to pay $15.16 million in restitution.

Muradyan pleaded guilty in August 2025 to conspiracy to commit health care fraud, wire fraud and tax evasion. Federal prosecutors said his conduct involved a long-running effort to conceal his role in a laboratory business, obtain Medicare payments and hide income from tax authorities.

Court hears how Burbank laboratory owner devised scheme to fund gambling habit

According to court records, Muradyan owned and operated Genex Laboratories Inc., a blood-testing laboratory in Burbank. After Medicare barred him from submitting claims, prosecutors said he arranged for a longtime friend identified as “L.S.” in court documents to appear as the company’s owner.

Authorities said the move allowed Medicare reimbursement payments to keep flowing while masking Muradyan’s involvement. Court records show that Medicare deposited more than $23 million into bank accounts opened in L.S.’s name but controlled by Muradyan.

Prosecutors said Muradyan agreed to pay L.S. $2,000 each month in exchange for serving as the laboratory’s owner on paper. He allegedly told his friend that Medicare enrollment paperwork had to be filed under L.S.’s name because Muradyan was prohibited from filing claims himself.

Although L.S. was listed as the owner, investigators said he did not actually run the company. Instead, he reportedly came to the Burbank office to collect monthly payments and occasionally signed documents at Muradyan’s direction while Muradyan remained in charge of the business.

Federal prosecutors said Muradyan spent proceeds from the fraud scheme on personal obligations, including mortgage payments, gambling and other expenses.

The government also said the arrangement supported a tax evasion scheme that lasted from 2015 through 2023. During that period, Muradyan instructed L.S. to report Genex financial activity on personal tax returns using summaries that falsely suggested the company earned little profit or operated at a loss.

This was then provided to L.S.’s tax preparer, who prepared returns using the information supplied by Muradyan, according to prosecutors.

Authorities also said Muradyan filed personal tax returns that omitted Genex financial activity and reported average annual income of about $40,000 despite receiving and spending millions generated by the laboratory. He also failed to file tax returns from 2021 through 2023.

Prosecutors said he concealed roughly $23.9 million in taxable income, resulting in more than $11.2 million in unpaid federal taxes. Court records further state that California suffered about $2.7 million in tax losses.

The case also included a fraudulent Economic Injury Disaster Loan application submitted in July 2020 on behalf of an entity called GenMed. Prosecutors said Muradyan falsely claimed the business had employees and generated $800,000 in revenue during 2019. The Small Business Administration approved a $99,900 loan, and authorities said the money was later spent on personal expenses not allowed under the program.

IRS Criminal Investigation, the FBI and the Department of Health and Human Services Office of Inspector General investigated the case. Prosecutors from the U.S. Attorney’s Office and the Department of Justice handled the prosecution.

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Two people were arrested after police and regulators carried out a raid at a suspected illegal gambling venue in central Manchester, according to authorities.

The action followed reports that a property on Chester Road had been hosting gambling activity without the licenses required under UK law. Officers from Greater Manchester Police’s City of Manchester team joined staff from the Gambling Commission and Manchester City Council’s licensing department for the operation on May 28.

A 33-year-old man and a 66-year-old woman were detained on suspicion of offences under the Gambling Act 2005 and the Licensing Act 2003. Police said both remained in custody for questioning as of Thursday evening.

When investigators entered the premises, they discovered gambling tables, chips, account books and records. Officers also recovered alcohol, cash, mobile phones and other materials they believe could be relevant to the case.

Financial investigators join Manchester gambling raid inquiry

What began as a gambling investigation has expanded into a wider probe. Greater Manchester Police said specialists from its Financial Crime Unit and money laundering team are now assisting with ongoing inquiries.

Authorities have not disclosed how large the suspected operation was or how long it may have been running. No charges had been announced when police released details of the raid.

PC Nial Vivian said the operation targeted businesses operating outside legal requirements.

“It is important that all businesses adhere to the laws put in place, and which is why we took action in the city centre yesterday,” Vivian said in a statement.

He also warned that unlawful gambling venues can be linked to broader criminal activity.

“Illegal gambling can cause many issues – from disputes about cash to money laundering – and it is important that we shut them down whenever we come across them,” Vivian said. “We have worked closely with our partners in both the Gambling Commission and Manchester City Council.”

The Gambling Commission described the Manchester case as part of a wider national effort to tackle unlicensed gambling.

Sue Young, the commission’s executive director of operations, added: “Tackling all forms of illegal gambling is a focus for the Commission so we were keen to work in partnership with Greater Manchester Police and Manchester City Council on this operation.”

The raid comes months after a separate enforcement action in Birmingham showcased similar concerns. In July 2025, police officers from Operation Fearless and the Serious Organised Crime and Exploitation unit raided premises in Ladywell Walk, where they uncovered an underground poker and gambling operation.

The investigation resulted in four arrests. Two men were arrested on suspicion of money laundering, while two others were held over immigration offences. Officers also seized gaming machines believed to be connected to suspected money laundering and fraud, along with large amounts of cash, drugs and weapons.

Authorities said the Manchester investigation remains active, with further inquiries continuing.

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Kalshi is preparing to bring crypto perpetual futures to U.S. traders, making it the first company set to offer the product under Commodity Futures Trading Commission oversight. The move comes as federal regulators put in place a domestic framework for a category of crypto derivatives that has historically been concentrated on offshore platforms.

The New York-based exchange said investors in the United States will soon be able to trade crypto perpetual futures through its platform. That announcement follows a May 29 CFTC order approving Kalshi’s bitcoin-linked perpetual futures contract, along with a policy statement explaining how similar products will be supervised going forward.

Perpetual futures, often called perpetual contracts or “perps,” differ from traditional futures because they do not expire. Instead of relying on a settlement date, they use a recurring funding-rate mechanism intended to keep contract prices aligned with the underlying asset’s spot market.

Kalshi introduces new framework for crypto perpetual futures

According to the CFTC, perpetual contracts have become one of the most heavily traded forms of crypto derivatives worldwide. Regulatory uncertainty in the United States, however, pushed much of that activity to offshore venues rather than federally regulated exchanges.

For Kalshi, the launch is said to signal an expansion beyond the event contracts that made the company a leading name in prediction markets. The company has increasingly positioned itself as a wider derivatives exchange rather than a platform focused only on forecasting events.

Federal regulators said they spent roughly the past year building what they consider a workable domestic structure for perpetual contracts. This included a public comment process and consideration of recommendations from the President’s Working Group on Digital Asset Markets, which urged greater clarity around innovative financial products.

The agency added that perpetual contracts function differently from traditional futures. Rather than converging at expiration, they depend on funding payments between long and short traders. When a contract trades above the spot market, long positions pay shorts. If it trades below spot, the payment flow reverses.

The CFTC said that design raises “novel and complex questions” involving market structure, customer protection, operational resilience and exchange compliance obligations. Regulators noted that perpetual contracts require reliable reference pricing at every funding interval for as long as the contract remains active.

The approval arrives as Kalshi continues to test regulatory boundaries in other areas. The company has been involved in disputes over prediction markets, including cases in which the CFTC has defended federal oversight against state gambling-related challenges. Kalshi has also pursued additional event-based products, including a filing tied to contracts involving college athletes.

While approving Kalshi’s bitcoin-linked contract, regulators said perpetual contracts connected to other asset classes will generally require separate review. Agricultural commodities, precious metals, equities and narrow-based stock indexes could each present different regulatory concerns.

“This marks Kalshi’s evolution from prediction market leader to next-gen derivatives exchange,” Chief Executive Tarek Mansour said in announcing the launch.

Regulators said clear rules are essential if emerging financial products are to develop inside regulated U.S. markets instead of migrating overseas.

Featured image: Kalshi via press release

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The owners of Hawthorne Race Course and the official committee representing unsecured creditors are asking a bankruptcy judge to authorize an investigation into Illinois Department of Agriculture Director Jerry Costello II over decisions involving horse racing funds.

A motion filed May 20 in the Chapter 11 cases of Hawthorne Race Course and related entities seeks permission to examine Costello, the Illinois Department of Agriculture, Fairmount Park Casino & Racing, and lobbyist John P. Costello, who is Jerry Costello’s brother.

Questions over allocation of Hawthorne racing funds

According to the filing, Hawthorne traditionally received between 55% and 60% of distributions from the Illinois Thoroughbred Breeders Fund because it staged substantially more races than Fairmount Park. The debtors say that changed after the bankruptcy cases began in February.

“Following the Petition Date, this allocation pattern shifted. Despite no material operational changes, Fairmount Park received disproportionately large allocations while the Debtors’ share was significantly reduced. Approximately $300,000 remains undistributed. The Movants have identified troubling connections.”

According to the motion, “this allocation pattern shifted” and “Fairmount Park received disproportionately large allocations while the Debtors’ share was significantly reduced.”

The filing places Jerry Costello at the center of the dispute. “Jerry Costello serves as Director of the Illinois Department of Agriculture, which administers the Thoroughbred Fund, and chairs the advisory board recommending distributions,” the filing states.

Hawthorne and the creditors’ committee argue the funding changes happened even though there were “no material changes in the relative operations of the two Illinois racetracks.” They also contend that roughly $300,000 remains undistributed and say most of that money should go to Hawthorne based on past practices.

The motion further highlights ties it considers concerning between state officials and Fairmount Park. It notes that John P. Costello was recently retained as a registered Illinois lobbyist for the Illinois HBPA, the horsemen’s association at Fairmount Park. He rejected the accusations in comments to the Chicago Tribune, calling them false and “defamatory.” He told the newspaper the allegations would be addressed in court.

The debtors and committee allege that adverse funding decisions “were made at the direction of Jerry Costello through the IDOA and the Thoroughbred Board, and were influenced by the lobbying efforts of John Costello.”

They also challenge actions taken by the Department of Agriculture after the bankruptcy filing. According to the motion, the agency sought financial records from Hawthorne and later informed the track that it was reducing a Thoroughbred Fund grant by $316,895 and terminating a grant agreement. The filing describes those actions as occurring “without basis and in violation of the automatic stay.”

The request comes as Hawthorne continues through Chapter 11 proceedings in Chicago. Earlier in the case, U.S. Bankruptcy Judge Timothy A. Barnes denied the company’s request for an emergency hearing tied to a motion seeking additional time to file financial disclosures. In a March order, Barnes ruled that the request failed to qualify for emergency treatment and directed the matter to proceed on the court’s normal schedule.

The parties seeking the latest investigation say they need documents and testimony to determine “the extent of the Rule 2004 Parties’ efforts to diminish the funds allocated to the Debtors” and to investigate communications surrounding Thoroughbred Fund distributions. They further state that they “have reason to believe that the Rule 2004 Parties are engaged in coordinated efforts to adversely impact the Debtors’ operations, divert funds to which the Debtors are entitled, and interfere with the ongoing administration of these estates.”

They are seeking authority to issue subpoenas and conduct examinations under Bankruptcy Rule 2004. The allegations were made in court filings and have not been adjudicated by the bankruptcy court.

On May 27, Barnes granted Hawthorne Race Course and the unsecured creditors’ committee permission to pursue discovery related to their allegations. The order allows the parties to issue subpoenas and seek depositions from Jerry Costello, John Costello, and officials connected to Fairmount Park Casino & Racing.

Featured image: Canva

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Florida authorities say two suspected illegal gambling businesses in Sarasota County were shut down during a coordinated operation that resulted in dozens of gaming machines being confiscated along with more than $62,000 in cash.

The May 27 action brought together the Florida Gaming Control Commission and the Sarasota County Sheriff’s Office. Search warrants were served at Bingo Palace on South Tamiami Trail in Venice and at another gambling location on Clark Road in Sarasota as part of Operation Early Morning.

Investigators reported finding 69 unauthorized slot machines between the two sites. According to officials, 39 machines were removed from the Venice business and 30 were taken from the Sarasota location. Deputies also recovered $62,376 in cash connected to the machines. The case remains under investigation.

The Sarasota County operation is the latest step in a statewide campaign targeting gambling businesses that operate outside Florida’s legal and regulated framework. Recent enforcement actions in neighboring Manatee County and elsewhere have reflected growing concern among authorities about the spread of unlicensed gaming establishments.

Sarasota illegal machines raid part of Florida enforcement effort

State officials say the Sarasota raids fit into a larger pattern of enforcement activity that has intensified over the past year. The Florida Gaming Control Commission has repeatedly announced investigations aimed at illegal casinos, adult arcades, and unauthorized slot machine operations. In earlier actions, authorities reported seizing hundreds of machines, including a crackdown that resulted in the confiscation of 623 illegal gambling devices across multiple locations.

Officials argue that these businesses bypass regulatory oversight and can create conditions that attract additional criminal activity.

“Illegal gambling operations are not harmless businesses. They operate outside the law, avoid oversight, create opportunities for crime, and take money from Florida communities,” said Florida Gaming Control Commission Chair Julie Brown. “This operation reflects our continued commitment to working with law enforcement partners to protect Floridians and enforce the law wherever illegal gambling activity is found.”

The enforcement push is expected to gain additional resources. Lawmakers recently approved two new enforcement units for the Florida Gaming Control Commission, with one assigned to Sarasota County to bolster efforts across southwest Florida.

“The Legislature’s support for additional enforcement officers is timely and important,” said FGCC Director of Gaming Enforcement L. Carl Herold. “Illegal casinos are spreading into communities across Florida, and they require a focused, coordinated law enforcement response. The new Sarasota County-based enforcement unit will help us respond more quickly, build stronger local partnerships, and keep the pressure on illegal gambling operators who believe they can profit by ignoring Florida law.”

Local authorities say cooperation between agencies will remain a key part of future investigations.

“We are proud to work alongside Florida’s Division of Gaming Enforcement and their effort to address illegal gaming operations and adult arcades,” Hoffman said. “These businesses often attract additional criminal activity and have no place in our community. Through strong partnerships and proactive enforcement efforts, we remain committed to protecting our residents, and ensuring Sarasota County remains a safe place to live, work, and visit.”

The gaming commission said it will continue partnering with federal, state, and local agencies to investigate unlawful gambling operations and support criminal cases throughout Florida.

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The United States and the Commodity Futures Trading Commission (CFTC) have asked a federal judge to block Rhode Island from enforcing state law against federally regulated event contracts, deepening a growing legal battle over the regulation of prediction markets.

In a motion for a preliminary injunction filed Friday (May 29) in the U.S. District Court for the District of Rhode Island and reviewed by ReadWrite, the federal agencies argued that the contracts at issue fall under the Commodity Exchange Act and are subject to the Commission’s exclusive authority. The request was filed in litigation brought by Kalshi, a CFTC-regulated exchange that offers event-based contracts tied to outcomes such as sports events, elections, weather, and economic indicators.

According to the filing, the event contracts Rhode Island seeks to prohibit are “swaps” under the Commodity Exchange Act. The agencies said transactions involving swaps traded on CFTC-registered Designated Contract Markets are committed by statute to the Commission’s “exclusive jurisdiction.” They further argued that “Rhode Island law is therefore preempted as applied to event contracts traded on DCMs.”

The motion was submitted by the United States and the CFTC as proposed plaintiff-intervenors in Kalshi’s lawsuit against Rhode Island Division of State Lottery Director Mark Furcolo, Attorney General Peter F. Neronha, and Department of Business Regulation Gaming and Athletics Administrator Christina Tobiasz.

The CFTC expands Kalshi challenge against Rhode Island via injunction

The federal agencies have not yet been formally admitted to the case, but they asked the court to consider their injunction request alongside briefing already underway on Kalshi’s own request for preliminary relief.

The filing states that the agencies acted now because of the accelerated schedule already in place, explaining that doing so would provide the court “an opportunity to consider it (and allow other parties to respond) in the course of the existing briefing schedule, rather than creating additional delays.”

While the federal government’s request closely tracks Kalshi’s position, it seeks relief. Kalshi’s lawsuit focuses on its own contracts, while the United States and the CFTC want a ruling that would prevent Rhode Island from enforcing state law against event contracts traded on any federally regulated designated contract market.

The filing states that the proposed intervenors seek “an injunction prohibiting enforcement of state law as to event contracts traded on all DCMs, not simply event contracts traded on Kalshi.”

The dispute began after Kalshi sued Rhode Island officials, arguing that threatened gambling enforcement improperly interfered with a federal regulatory framework. In its complaint, Kalshi alleged that “Rhode Island’s stated intent to prohibit Kalshi from operating intrudes upon the federal framework that Congress established for regulating the trading of derivatives on federally designated exchanges.”

Rhode Island later filed its own lawsuit against Kalshi and Polymarket, claiming the companies were offering what amounted to unlicensed sports wagering. Federal regulators have since characterized the conflict as a jurisdictional dispute between state gaming authorities and the federal derivatives regime.

The CFTC recently warned that state challenges represent “an onslaught of lawsuits seeking to limit Americans’ access to event contracts and undermine the CFTC’s sole regulatory jurisdiction over prediction markets.”

The United States and the CFTC also requested oral argument. A hearing on Kalshi’s preliminary injunction request is scheduled for July 16, and the agencies said they “would welcome the opportunity to participate in that hearing.”

Featured image: CFTC / Canva

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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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