Today in prediction market news, we’re following the biggest developments shaping the industry, including growing scrutiny of Polymarket’s marketing practices, reports of a new Commodity Futures Trading Commission investigation, lawmakers calling for a federal probe, and Meta CEO Mark Zuckerberg’s push to explore partnerships with Polymarket and Kalshi. We’ll also track Kalshi’s latest strategic moves, market reactions, and breaking developments across prediction markets, sports event trading, crypto, and regulated forecasting throughout the day.

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The federal government has stepped into Kalshi’s legal fight with Rhode Island, arguing the state cannot use its gambling laws to restrict federally regulated prediction market contracts. The move widens the dispute over who controls event-based financial products tied to sports and other outcomes.

The United States and the Commodity Futures Trading Commission filed a proposed complaint in the U.S. District Court for the District of Rhode Island, asking to join Kalshi’s lawsuit and stop state officials from enforcing gambling laws against federally regulated exchanges. According to the filing, Congress granted the CFTC exclusive authority over commodity futures, options and swaps traded on federally regulated exchanges, leaving no room for conflicting state regulation.

Federal regulators say Rhode Island gambling laws cannot override CFTC authority in Kalshi dispute

Rhode Island’s enforcement action, filed on May 21, 2026, targets Kalshi and QCX LLC, which operates Polymarket. According to the proposed complaint, the state alleges 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 an injunction preventing the companies from offering sports-related event contracts in Rhode Island. Kalshi previously argued 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.”

Federal regulators maintain those products are financial derivatives, not gambling. The filing says the contracts are “swaps” under the Commodity Exchange Act and are traded on CFTC-regulated designated contract markets, making them subject to the Commission’s exclusive jurisdiction. The agencies argue Rhode Island law is preempted when applied to those federally regulated products.

Unlike Kalshi’s lawsuit, which focuses on its own business, the federal government is seeking relief covering every CFTC-regulated designated contract market. The filing states 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 complaint also details the Commission’s oversight, noting it regulates thousands of self-certified event contracts, has approved exchanges including Kalshi, Polymarket, Gemini Titan and Nadex, brings enforcement actions, maintains information-sharing agreements with Major League Baseball and the National Hockey League, and is considering additional rulemaking.

Federal officials argue Rhode Island’s actions interfere with the government’s “sovereign, legally protected interest in enforcing federal law.” They also point to recent rulings, including a Third Circuit decision and injunctions issued in other states, that temporarily blocked state gambling enforcement against CFTC-regulated exchanges.

The case is part of a national conflict involving Arizona, Connecticut, Illinois, Minnesota, New York and Wisconsin, where states have challenged prediction markets. A hearing on Kalshi’s request for a preliminary injunction is scheduled for July 16, and the United States and the CFTC have asked to participate in oral argument.

Featured image: CFTC / Canva

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North Carolina is one step closer to changing several tax rules tied to its legal online sports betting market after lawmakers approved a wide-ranging revenue bill. Senate Bill 595, titled “Various Revenue Laws Changes,” has cleared the General Assembly and now awaits action from Gov. Josh Stein. While the legislation covers many tax issues, it also includes several provisions that directly affect licensed interactive sports wagering operators and some players who collect gambling winnings.

The proposed changes touch three main areas. They update how taxable sports wagering revenue is calculated, expand the information the Department of Revenue can request from operators about successful bettors, and establish a new state income tax withholding requirement for certain gambling winnings beginning next year.

Changes to sports betting taxes and reporting in North Carolina

One revision updates the definition of gross wagering revenue for licensed interactive sports wagering operators. Under the bill, that figure continues to represent the total money received from sports wagers after subtracting winnings paid to players, but before deducting expenses, fees, or taxes.

The legislation also clarifies how promotional offers are treated for tax purposes. If a bonus or promotional credit is returned to an operator as a deposit or used to place a sports wager, its cash value would be included when calculating gross wagering revenue.

Another section gives the North Carolina Secretary of Revenue broader authority to request information from operators. The secretary could make such a request no more than once during each calendar year.

If requested, operators would have to provide records for every registered player who received at least $2,000 in winnings during the previous calendar year. Required information would include a player’s name, tax identification number, address, and other identifying details.

Operators also would need to report the total amount of wagers placed, the outcomes of those wagers, the winnings paid to each player, and any additional information already in their possession that the secretary determines is necessary to evaluate compliance with state tax laws.

The bill also creates a new withholding requirement for licensed interactive sports wagering operators and advance deposit wagering licensees. Whenever federal law requires gambling winnings to be subject to withholding under an Internal Revenue Code, operators would also have to withhold North Carolina income tax.

The amount withheld would match the state’s individual income tax rate, which means operators would be responsible for filing returns, paying the withheld taxes, and reporting those amounts using the same procedures that apply to wage withholding. Money withheld would be held in trust for the Secretary of Revenue. 

In other news, it was reported that it would also introduce a 6% tax on prediction market operators, after Stein signed an executive order in May banning North Carolina state employees from using insider knowledge to bet on platforms.

If signed into law, the withholding requirement would take effect January 1, 2027, and would apply to gambling winnings paid on or after that date. The sports wagering provisions remain part of the broader revenue package now awaiting the governor’s decision.

Featured image: Canva

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Polymarket is dealing with mounting problems on several fronts after a phishing campaign stole millions of dollars from users just as the prediction market platform faces growing pressure from lawmakers, regulators and fresh criticism over its marketing strategy and public image.

On Thursday (June 25), the company disclosed that a third-party vendor supporting its frontend had been compromised, allowing attackers to inject malicious code that targeted some users. Polymarket said it quickly removed the affected dependency, contained the incident and began contacting impacted customers. The company also pledged to fully reimburse everyone who lost funds.

“We discovered a 3rd party vendor had been compromised, injecting a malicious script into our frontend for some users,” the company said in a statement shared on X. Polymarket added that the malicious dependency had been removed and affected users would receive full refunds.

Security researchers later determined the attack was a phishing operation rather than a breach of Polymarket’s underlying smart contracts. Blockchain security researcher Specter estimated the attackers stole more than $2.9 million from at least 11 wallets. PeckShieldAlert separately estimated roughly $3 million in PUSD was drained before the stolen assets were bridged from Polygon to Ethereum and swapped for approximately 1,893 ETH. Researchers also published wallet addresses tied to the theft while warning users to stay alert for similar attacks.

The cybersecurity incident arrived at a difficult moment for the company, with renewed attention falling on its business practices, moderation decisions and regulatory compliance.

Polymarket marketing campaign and phishing attack news reaches Washington

The same day Polymarket disclosed the phishing attack, Senators John Curtis and Adam Schiff sent a letter to Commodity Futures Trading Commission Chairman Michael Selig urging the agency to investigate allegations surrounding the company’s marketing practices.

Their request follows allegations contained in a lawsuit filed by the National Association of Consumer Advocates in Washington, D.C., which accuses Polymarket of using undisclosed paid influencers, simulated trading websites, deceptive promotional videos and marketing campaigns that allegedly targeted American consumers despite previous regulatory restrictions.

The complaint also alleges the company maintained an intertwined corporate structure spanning multiple entities while continuing to promote both its offshore platform and U.S. business. The claims, which were originally reported by the Wall Street Journal, remain allegations in ongoing litigation.

In their letter, the senators said recent reporting and allegations, if proven, “are deeply troubling and demand immediate scrutiny” from the CFTC.

The lawmakers also questioned whether prediction markets deserve different regulatory treatment than gambling platforms. They argued that marketing campaigns portraying prediction markets as “free money” undermine industry claims that these products primarily serve hedging and price-discovery purposes rather than gambling.

Their letter revisits Polymarket’s 2022 CFTC enforcement action, which resulted in a $1.4 million civil penalty and required the company to stop operating an unregistered event-based binary options platform in the United States. The senators also questioned whether subsequent marketing efforts continued reaching American users.

Among the questions posed to the CFTC are whether the agency is investigating the reported conduct, what advertising standards currently govern prediction markets and whether regulators have enough authority and resources to oversee products critics say increasingly resemble online gambling. The senators requested written responses by July 10.

CNBC also reported that the CFTC has opened an investigation into Polymarket, citing a source familiar with the matter, although the agency has not publicly confirmed the existence of any investigation.

Marketing missteps add to Polymarket’s growing controversies

The latest regulatory attention comes after several high-profile controversies involving Polymarket’s public-facing communications and market listings.

Earlier this year, the company faced backlash after a market titled “Artemis II explodes?” spread widely across social media. The contract briefly implied an 8% probability that the event would occur, prompting criticism from users who argued that wagering on what appeared to be a fatal space disaster crossed ethical boundaries.

Polymarket responded by explaining that the market was intended to measure the possibility of a booster-stage rupture after separation rather than any threat to the Orion crew capsule or astronauts. The company renamed the contract “Artemis II booster rupture?” before ultimately withdrawing it altogether and refunding outstanding shares after acknowledging widespread confusion about the market’s wording.

The incident reignited debates about prediction markets centered on disasters, deaths and other sensitive events. It also drew renewed attention to the company’s broader social media strategy.

We previously reported that Polymarket has increasingly pursued viral engagement on X, noting that some widely shared posts from company accounts later proved inaccurate. One example involved a sports-focused Polymarket account claiming a “no bag policy” had been introduced at a WNBA game to stop spectators from throwing sex toys onto the court. The post generated tens of millions of views before the league denied the claim.

The company’s online communications also attracted criticism in late 2025 after a now-deleted company social media post allegedly contained racist language directed at users from India, Nigeria and Turkey.

Company Chief Legal Officer Neal Kumar later apologized publicly, writing: “The post earlier this week from an unofficial Company account was unacceptable, and we take full responsibility.”

He added: “As an Indian American, looking up the history of the term sucked. I’ve always found engagement to be far more effective than rage, and believe this came from a place of misunderstanding, not hate.”

“The post earlier this week from an unofficial Company account was unacceptable, and we take full responsibility,” Kumar wrote. “As an Indian American, looking up the history of the term sucked. I’ve always found engagement to be far more effective than rage, and believe this came from a place of misunderstanding, not hate.

“Uncomfortable conversations to understand each other is a practice to live and breathe, and we had one here this week to make us stronger. We apologize for the pain and we are committed to doing better.”

Social media critics argued the apology should have come from Polymarket’s official account rather than a company executive.

ReadWrite has reached out to Polymarket for comment.

Featured image: Polymarket / Canva

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Today in prediction market news, we’re tracking the biggest developments across the industry in real time, including a federal judge’s decision to send Kalshi’s lawsuit against Michigan back to state court, new legal filings involving Kalshi and the New Mexico Tribes, and fresh momentum for federal prediction market legislation on Capitol Hill. We’ll also cover the Senate Democrats’ effort to limit the CFTC’s litigation funding, and the latest exchange fee filings from Kalshi and Polymarket. Follow our live blog throughout the day for breaking updates, market reactions, and analysis from across the prediction markets, sports event trading, crypto, and regulated forecasting industries.

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The Indiana Gaming Commission spent more than an hour Thursday hearing sharply different views on whether the state should prohibit proposition bets tied to individual college athletes. NCAA officials urged regulators to put student-athlete welfare first, while sportsbook operators argued that removing the wagers from legal markets would push bettors toward illegal platforms and reduce the industry’s ability to spot suspicious activity. In the end, the motion was tabled until its next meeting in September.

The June 25 hearing focused on a petition from the NCAA asking Indiana regulators to ban pregame player proposition bets involving college athletes. Traditional wagers on game outcomes would remain legal under the proposal, but bets linked to an individual player’s statistical performance would no longer be allowed.

“We’re not here to roll that back,” NCAA Senior Vice President of External Affairs Tim Buckley told commissioners, referring to legalized sports betting. “We’re here to explain why Indiana should join 19 other states in banning a very specific type of bet… bets on the individual performances of college athletes.”

Buckley said the NCAA continues to support regulated sports betting and regularly works alongside gaming regulators and licensed operators across the country. Still, he argued that player prop wagers create unique opportunities for harassment and manipulation even though they represent only a relatively small share of sportsbook betting activity.

College player prop bets face growing scrutiny amid Indiana concerns

NCAA officials told commissioners that individual player proposition bets have changed life for many college athletes, who increasingly receive abuse from frustrated gamblers over missed statistical milestones rather than the final score of a game.

Buckley pointed to NCAA research involving more than 556,000 student-athletes. According to the organization, nearly half of Division I men’s basketball players reported receiving abusive social media messages connected to sports betting, with many of those incidents tied to player props.

“Often times a play by a single athlete that has no bearing on the outcome of a game can change a prop bet,” Buckley said. “We know athletes are being harassed not only in person in the stands but also online by people believed to have a betting interest.”

The NCAA also submitted letters supporting its request from Butler University, Indiana University and Purdue University, as well as backing from the Big Ten Student-Athlete Advisory Group.

Clint Hangebrauck, the NCAA’s managing director of enterprise risk management, outlined the organization’s integrity efforts since sports betting expanded following the 2018 Supreme Court decision that struck down the federal ban outside Nevada. He said the NCAA has delivered in-person gambling education to more than 100,000 student-athletes, while another 25,000 have completed online training. The association also monitors more than 23,000 collegiate contests each year and screens roughly 20,000 officials.

Hangebrauck said the NCAA’s partnership with social media monitoring company Signify has uncovered thousands of abusive betting-related messages during recent March Madness tournaments.

“They talk about the student-athlete’s individual performance. ‘Why couldn’t you get me five more points or two more rebounds? You cost me $5,000 for this parlay,'” he said. “That is a pretty innocuous example. It gets a lot uglier than that where we’ve seen death threats, things that we have to report to law enforcement.”

NCAA Managing Director of Enforcement Mark Hicks argued that player props carry different integrity risks because a single athlete may be able to influence a wager without changing who wins the game.

Hicks described investigations involving athletes discussing prop bets before games, sharing information with proxy bettors and, in one case outside Indiana, intentionally underperforming after coordinating with gamblers. He also referenced a recent Indiana investigation involving wagers on teammates’ player props.

“We think having targets on the backs of student-athletes is especially concerning when you have player performance at stake,” Hicks said.

Commissioners asked whether states that already ban college player props have recorded measurable declines in athlete harassment.

“I don’t believe we have data to show that,” Buckley said.

The NCAA has pushed similar requests across the country. Earlier this year it called on state gaming commissions across the country to eliminate college player proposition bets, arguing that the wagers expose athletes to unnecessary abuse and increase integrity concerns. Not every regulator has agreed. Missouri’s gaming watchdog recently declined to move forward with a comparable request, saying existing rules already provide oversight and that broader policy questions should be addressed through the regulatory process. Meanwhile, lawmakers in North Carolina have also examined whether college player props deserve additional restrictions as concerns about athlete harassment continue to grow.

Indiana regulators continue weighing the evidence

Sportsbook representatives quickly focused on Buckley’s acknowledgment that the NCAA cannot show reduced harassment in states that already prohibit the bets.

Representing the Sports Betting Alliance, attorney Scott Ward said operators share the NCAA’s concerns but believe a ban would simply move betting activity away from regulated sportsbooks.

“We share the concerns of the NCAA with player harassment,” Ward said. “However, banning prop bets does not eliminate the harm. It simply eliminates visibility, driving bettors to unregulated markets where prop bets are already readily available.”

Ward argued that Indiana law requires the NCAA to establish “good cause” by demonstrating a credible threat to wagering integrity, rather than showing only that athletes experience harassment.

According to Ward, regulated sportsbooks generate detailed records that can be shared with gaming regulators, integrity monitoring services and law enforcement whenever suspicious activity appears.

DraftKings Vice President David Foppert said licensed sportsbooks sit at the center of that monitoring system because they collect customer identities, geolocation information, payment records, device data and every wager placed.

“Every dollar that comes onto a regulated operator’s platform is monitored, tracked and acted on,” Fabert said. “Every dollar in the illegal market goes into the darkness.”

Fanatics Senior Vice President Sarah Tait said the company has partnered with Signify and IC360 to identify customers who harass athletes online and remove them from its platform.

“There is no place for this behavior on our platform,” Tait said.

Former Florida gaming regulator Louis Trombetta, now representing FanDuel, argued that larger legal betting markets actually improve integrity because they provide stronger statistical baselines that make unusual wagering easier to detect.

Foppert echoed that position, saying suspicious betting patterns become much easier to identify when compared with high volumes of legitimate wagers.

Commissioners questioned whether that effectively meant sportsbooks were claiming that more betting leads to greater athlete safety.

Foppert replied that more betting data allows operators to give regulators and sports governing bodies better information when investigating potential manipulation.

The debate over proposition bets extends beyond college sports. The NFL has also circulated guidance to sportsbooks identifying certain novelty and highly specific proposition wagers that should not be offered because of integrity concerns, illustrating that even professional leagues recognize some betting markets can present elevated risks.

The commission ended the hearing without taking action, leaving Indiana’s current rules in place while regulators continue reviewing the NCAA’s petition.

Before the proceedings wrapped up, commissioners returned to the central legal question and asked Buckley whether player props present a credible threat to sports wagering integrity.

Buckley said they do.

He argued that college athletes are especially vulnerable because they often lack the financial resources, experience and institutional protections available to professionals.

“If someone’s only betting a hundred bucks or two hundred bucks on someone’s prop, that may not move the line in any meaningful way,” Buckley said. “But that could be the difference between a student-athlete getting into serious trouble… We should be taking those opportunities away at every possible turn.”

By the close of the hearing, everyone involved agreed that harassment directed at college athletes is unacceptable. The disagreement remained over whether banning player proposition bets would reduce that behavior or instead weaken the transparency that regulators and sportsbooks rely on to detect potential betting misconduct.

Featured image: Canva

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Fanatics Sportsbook is rolling out a new initiative with Integrity Compliance 360 (IC360) and Signify Group that aims to identify sports bettors who threaten or harass athletes, coaches and officials online, with violators potentially losing access to their betting accounts.

The companies announced the Bad Actor Program on Thursday (June 25), saying it is meant to address the growing wave of abuse directed at sports figures through social media. The system is expected to launch before the upcoming football season, pairing online monitoring with sportsbook enforcement.

Fanatics initiative links online abuse to sportsbook penalties 

IC360 said it will work alongside Signify Group’s Threat Matrix service to monitor public activity across platforms including X, Instagram, Facebook, TikTok and YouTube. Investigators will review abusive or threatening posts, replies and other public content involving athletes, teams and sports organizations. When behavior meets the program’s standards, individuals may be added to IC360’s ProhiBet Bad Actor platform.

The new system builds on IC360’s existing ProhiBet technology, which already helps sportsbooks block prohibited wagers by athletes, coaches and trainers. Under the expanded version, participating operators can suspend or permanently ban betting accounts belonging to users who direct threats or harassment at sports figures.

Signify said Threat Matrix already tracks online abuse across global sporting events and encourages athletes and officials to report abusive direct messages. Those reports are assessed, investigated and, when appropriate, referred to law enforcement.

Fanatics Sportsbook will become the first legal sportsbook to join the program. The company said customers found engaging in abusive, threatening, defamatory or harassing conduct toward athletes, coaches or officials may face account suspensions or permanent bans. Evidence can also be shared with other participating operators to identify repeat offenders.

“This groundbreaking program will hold bettors accountable for threats made against players, coaches, and officials. It falls in line with our core values at Fanatics – respect and tolerance for the athletes and coaches that play the games that we love,” said Matt King, CEO of Fanatics Betting and Gaming. “We encourage other operators to join the initiative because there is no sports betting potential loss that should embolden a sports betting customer to threaten or harass an athlete online.”

The announcement comes as research continues to highlight the scale of betting-related abuse. An NCAA study released in late 2025 found 36% of Division I men’s basketball student athletes reported sports betting-related social media abuse during the previous year, while 16% of Football Bowl Subdivision football players said they received negative or threatening messages. The NCAA has repeatedly urged regulators and operators to eliminate college player prop bets, arguing they increase risks to student athletes.

The issue was also discussed during a Senate Commerce Committee hearing in May, where IC360 Co-CEO Scott Sadin told lawmakers integrity monitoring relies on real-time cooperation among sportsbooks, leagues, regulators and law enforcement to identify suspicious betting patterns before they threaten competition.

“Threats of violence and harassment in sports at arenas and on social media are increasing at an alarming rate, undermining the integrity of the sports betting industry,” said Scott Sadin, Co-CEO of IC360. “Addressing the individuals with ProhiBet BA and Threat Matrix is crucial to protecting athletes and other stakeholders from serious, long-term harm.”

“We commend Fanatics Sportsbook for taking a leadership position on an issue that affects athletes across every sport. This is a clear message to anyone who believes threatening, harassing or abusing athletes online is simply part of being a fan: it is not,” said Jonathan Hirshler, CEO of Signify Group. 

“Over the last few years, many of our global sports clients have been calling for Betting and Gaming Operators to tackle this growing problem head on. Working together with Fanatics Sportsbook and IC360, we’re glad to be able to offer that.”

The companies said the Bad Actor Program is designed both to discourage abusive online behavior and reassure athletes and coaches that credible threats can be identified, investigated and acted upon.

Featured image: Canva

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Today in prediction market news, we’re tracking the biggest developments across the industry in real time, including reports that Meta is exploring prediction markets, new legal challenges involving the Commodity Futures Trading Commission. Follow our live blog throughout the day for breaking updates, market reactions, and analysis from across the prediction markets, sports event trading, crypto, and regulated forecasting industries.

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A proposed change to the Lumbee Tribe of North Carolina constitution has been defeated by voters, stopping plans that could have opened the door to future tribal gaming projects and a possible casino resort in Robeson County.

The result followed months of discussion inside the tribe about whether gaming should become part of a broader economic development strategy after federal recognition was secured in 2025.

Lumbee Tribal Chairman John L. Lowery announced the outcome in a social media statement after voting concluded on Tuesday (June 23).

“Tonight, a majority of the Lumbee people have spoken, and they have said no to progress and have decided to stay with the status quo or simply staying with the way things are,” Lowery wrote.

Lowery said he would accept the decision and would not bring the matter back during the final 18 months of his term.

“As a federally recognized Indian tribe, we had the opportunity, like so many of our brother and sister tribes, to exercise our sovereignty rights to the fullest and generate billions of dollars to assist our tribal members and lift this entire region,” he said. “This decision by the majority of Lumbee voters is historic and ensures we will not move forward with gaming.”

Lumbee voters reject casino path after months of debate

Earlier this year, the Tribal Council voted to place the constitutional amendment before tribal citizens after obtaining the required two-thirds approval.

Backers of the proposal said gaming revenue could create a long-term source of funding for housing, healthcare, education, infrastructure and other services. During council discussions in April, Lowery argued that the tribe needed additional revenue streams to keep pace with growing demands and spoke of dramatically expanding the tribal budget over time.

Supporters also pointed to a 241-acre property the tribe purchased in Robeson County. Tribal officials had identified the site as a potential location for the proposed Lumbee Dark Water Resort, a large project that could have included gaming, hotels, entertainment attractions, retail development, water features and convention space.

Campaign materials distributed before the election described the resort as a destination development covering more than 200 acres and capable of generating thousands of jobs across southeastern North Carolina.

“For generations, the Lumbee people have fought for recognition, opportunity, and a better future,” the campaign wrote. “The question is no longer whether we deserve opportunity. The question is whether we are willing to seize it.”

Opponents focused much of their criticism on governance and oversight issues. Some argued the amendment would place too much authority in tribal leadership, while others questioned whether enough details had been provided about how future gaming operations would be managed.

The defeat leaves uncertainty around the future use of the Robeson County property. Tribal leaders have said the land could still support other development, including a business and industrial park intended to attract employers and create jobs.

“I will honor the wishes of the majority,” Lowery said. “I will not bring this issue forward again over the remaining 18 months of my tenure.”

Featured image: LumbeesChoose.com / SOSHNY

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The NFL has turned down a request from college quarterback Brendan Sorsby for special eligibility to enter the league through a Supplemental Draft, pointing to both the circumstances of his NCAA ineligibility and the league’s decision not to hold a Supplemental Draft in 2026.

In a June 23 letter sent to Sorsby, NFL Management Council General Counsel Lawrence P. Ferazani Jr. said the league had reviewed a Petition for Special Eligibility dated June 16 and decided not to grant it.

“As announced earlier today, the League has elected not to conduct a Supplemental Draft this year,” Ferazani wrote.

According to the letter, the collective bargaining agreement gives the NFL sole authority to decide whether a Supplemental Draft will take place. The league said no draft had been scheduled for 2026 because no other player had sought entry through that process.

Ferazani also criticized the timing and content of the filing. The NFL said the petition arrived only three business days before the deadline and did not include supporting records or documentation.

“Your Petition—filed three business days before the deadline, without any supporting information or documentation, and only after abandoning your recent litigation efforts to avoid NCAA sanctions—does not provide a basis for the League to alter those plans,” the letter stated.

NFL cites gambling allegations and lack of accountability in Brendan Sorsby draft eligibility case

The NFL said Sorsby’s petition offered only three reasons for seeking Supplemental Draft eligibility: that he had been ruled ineligible by the NCAA, had exhausted options to continue competing in college football, and wanted to pursue an NFL career.

League officials said the filing did not explain the NCAA ruling or provide details about when and why it was issued. Ferazani noted that publicly available information indicated the NCAA determined in May 2026 that Sorsby was permanently ineligible because of gambling-related conduct during his college career.

The NFL acknowledged it did not have the full NCAA investigative record and said Sorsby did not submit those materials with his request. Even so, the league said available reporting suggested repeated violations of rules intended to protect competitive integrity.

Ferazani referenced reports alleging that Sorsby placed wagers involving his own team and teammates and used intermediary accounts to hide betting activity. The letter further noted reports that some conduct may have violated state law.

“Your Petition does not address these matters. Nor does it demonstrate accountability for your conduct or indicate whether, or how, you would adhere to the League’s rules and policies governing the integrity of competition,” the letter said.

The decision comes after a series of legal battles tied to the NCAA ruling. Reports have detailed Sorsby’s efforts to challenge the sanctions in court, including litigation connected to his eligibility after leaving Texas Tech. A judge later issued a ruling that cleared the way for parts of that dispute to move forward, but the fight over his NCAA status ultimately did not produce the outcome he sought.

The NFL encouraged Sorsby to continue preparing for a conventional path into the league.

“As Commissioner Goodell has emphasized, participation in the NFL is a privilege that carries with it significant responsibilities, including accountability,” Ferazani wrote. “By all accounts, you are a talented player with the potential for future success. We encourage you to focus on preparing for possible entry into the NFL through the 2027 NFL Annual Draft.”

Featured image: Cincinnati Bearcats (GoBearcats) via YouTube

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Meta shares traded near $562.20 and fell roughly 5.3% over the past five sessions as investors weighed a report that the company may be developing a standalone prediction market application.

The New York Times reported that Chief Executive Mark Zuckerberg has directed employees to build an experimental product that could eventually compete for user attention with prediction-market platforms such as Polymarket and Kalshi.

According to the news outlet, Meta has assembled a small internal team to create a smartphone app known internally as Arena. The reported project would function separately from Facebook, Instagram, WhatsApp and Messenger. Employees familiar with the effort told the newspaper that the initial version would rely on a points-based system instead of real-money wagering, though the possibility of future betting features has not been excluded.

Meta declined to comment to the newspaper and has not publicly confirmed the reported plans. Because of that, investors are largely treating Arena as an early-stage concept rather than a product nearing launch. Senator Richard Blumenthal, who has already stepped up scrutiny of how deeply betting companies are now woven into professional and college sports, wrote on X: “Meta’s business model is profiting from addiction.”

Meta explores prediction market trend while investors await details

The reported initiative reflects a familiar strategy for Zuckerberg and Meta. When new forms of online engagement begin gaining momentum, the company often looks for ways to participate in those trends through new products or platform features.

Prediction markets have emerged as one of the internet’s fastest-growing categories. Users make forecasts on events that range from elections and sports contests to economic reports and entertainment awards. As activity has increased, companies such as Polymarket and Kalshi have attracted growing interest from both consumers and the technology sector.

Meta could see benefits beyond engagement if it enters the space. Prediction-market operators can generate revenue from transaction fees and related services, offering a business model that differs from Meta’s longstanding dependence on advertising. The search for additional growth opportunities has become increasingly important as the company’s existing platforms already reach billions of users worldwide.

At the same time, regulation remains a significant consideration. The prediction-markets industry has faced closer scrutiny from regulators and lawmakers because participants may be able to profit from information that is not widely available. Concerns involving oversight, consumer protections and market integrity have become more prominent as trading volumes have expanded.

Technology companies have already encountered legal and regulatory questions tied to gambling-related activity. We reported on court cases involving Apple, Google and Meta that examine whether major technology platforms benefit from gambling-app ecosystems. Another report detailed action by the UK Gambling Commission related to illegal gambling advertisements appearing on Meta-owned platforms.

It may help explain the restrained market reaction. Meta has launched standalone applications before, with varying levels of success. The company introduced a prediction-focused service called Forecast in 2020 to crowdsource projections during the COVID-19 pandemic, but the product was discontinued in 2022.

For now, investors remain focused on Meta’s advertising business, artificial-intelligence investments and long-term growth outlook. Until the company confirms Arena or provides additional details, the reported prediction market project is likely to be viewed as an experimental effort rather than a meaningful driver of valuation.

Featured image: Anurag R Dubey via WikiCommons / CC BY-SA 4.0

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The Commodity Futures Trading Commission (CFTC) has taken Kentucky to federal court, accusing the state of overstepping its authority in a growing dispute over prediction markets and event-based contracts.

A lawsuit filed June 23 in the U.S. District Court for the Eastern District of Kentucky asks a judge to declare that state gambling laws cannot be applied to event contracts traded on exchanges regulated by the CFTC. The agency is also seeking a permanent injunction that would prevent Kentucky officials from enforcing those laws against federally supervised markets.

According to the complaint, Kentucky began state court actions on June 17 against entities tied to Kalshi, Polymarket, Robinhood, Coinbase and Webull. State officials contend those companies were offering or facilitating sports gambling without authorization and are seeking penalties, damages, restitution and restrictions on future operations unless the firms obtain Kentucky sports wagering licenses.

CFTC challenges Kentucky state measures

The CFTC argues the contracts at issue are federally regulated swaps traded on designated contract markets and therefore fall under the Commodity Exchange Act rather than state gambling statutes.

“Kentucky is the latest state attempting to shut down federally-regulated event contracts,” said Chairman Michael S. Selig in a press release. 

“Prediction markets provide Kentuckians with valuable information about the likelihood of future events and offer risk management products relied on by Kentucky businesses and individuals. As I’ve consistently pledged, the CFTC is firmly committed to maintaining its exclusive jurisdiction over prediction markets, and today’s lawsuit against Kentucky is yet another example of the Commission protecting its federal interests.”

The agency says Kentucky’s effort extends beyond litigation. It points to House Bill 757, enacted in April after lawmakers overrode Gov. Andy Beshear’s veto. The measure increased Kentucky’s legal betting age from 18 to 21 and introduced new restrictions affecting prediction market operators. The law also imposed a 14.25% excise tax that the CFTC says would make continued operation in the state economically difficult.

The complaint further challenges provisions limiting business relationships between licensed sports betting operators and companies connected to prediction markets. Regulators argue those measures were crafted to discourage federally regulated exchanges from serving Kentucky residents.

Kentucky’s actions arrived after other state-level challenges involving prediction markets. We previously reported that Kentucky lawsuits targeted companies including VGW, Kalshi and Polymarket as regulators intensified scrutiny of emerging event-contract platforms.

The federal agency maintains that Congress established a comprehensive national framework for futures, options and swaps markets and granted the CFTC exclusive jurisdiction over those products. Allowing states to impose separate gambling rules, the complaint argues, would create conflicting obligations for exchanges required to provide impartial nationwide access.

The Kentucky case is part of a general campaign by the CFTC. The agency has already launched similar legal actions against Minnesota, Illinois and Rhode Island. ReadWrite also reported on a related lawsuit against Wisconsin.

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Today in gambling news, we’re tracking two pivotal votes in North Carolina – one that paves the way for a revised tax bill that includes sports betting changes, and one that would potentially see the Lumbee Tribe construct a land-based casino in the southeastern section of the state. Beyond that, both New York and Maryland have increased involvement in the horse racing world for two very different reasons, and more is sure to come. Follow our live blog throughout the day for the latest breaking updates, voting results, reactions, analysis, and more from the gambling industry and beyond.

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Today in prediction market news, we’re tracking the biggest developments across the industry in real time, including new scrutiny surrounding Polymarket’s U.S. promotion practices, Minnesota’s legal challenge accusing the Trump administration of rapidly deregulating prediction markets, Underdog’s first CFTC rule filings following its Aristotle Exchange acquisition, Charles Schwab’s entry into the prediction markets business, and fresh federal legislation targeting the sector. Follow our live blog throughout the day for breaking updates, market reactions, and analysis from across the prediction markets, sports event trading, crypto, and regulated forecasting industries.

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New York racing regulators have started a statewide review of fire prevention and suppression systems in horse barns after a devastating blaze at Saratoga Casino Hotel’s harness track claimed the lives of 17 horses.

The fire broke out before dawn on June 16 at the Saratoga Springs facility. According to the Saratoga Springs Fire Department, crews were dispatched to a reported structure fire at about 2:31 a.m. at the harness racing complex on Nelson Avenue.

Authorities said the barn contained 18 horses. Seventeen died in the fire, while one escaped with minor injuries. The structure was destroyed.

The horses were owned by connections associated with two trainers. Robyn Mangiardi lost 11 horses, and Timothy Benson lost six.

Fire safety review underway across New York after Saratoga Casino Hotel blaze

In response to the loss, the New York State Gaming Commission said it is conducting an immediate examination of fire safety practices and equipment at barns located at all 11 racetracks across the state.

“The fire at Saratoga was a terrible tragedy, and we offer our deepest condolences to the connections of the horses that were lost. We are conducting an immediate, top-to-bottom review of fire prevention methods currently in place at barns and determining what more can be done to prevent such a tragedy from reoccurring,” said Gaming Commission Chairman Brian O’Dwyer.

Firefighters arriving at the scene found the barn heavily engulfed in flames. Officials said conditions were already advanced, forcing crews to fight the fire defensively while focusing on protecting nearby structures from ignition. Mutual aid agencies were called in to assist with water supply operations, scene support and emergency coverage elsewhere in the city.

Emergency responders, law enforcement officers, track employees and others worked to move animals from nearby barns when conditions permitted. Even with those efforts, fatalities occurred inside the affected structure.

Officials said the fire remained confined to a single barn and did not spread to neighboring buildings. Security personnel from Saratoga Casino Hotel and Saratoga Race Course helped evacuate horses from surrounding areas. Roughly 350 horses are normally housed in the backstretch section of the property.

No civilian injuries were reported. Fire officials also said there were no reported firefighter injuries at the time information was released.

“The loss suffered today is heartbreaking for our racing community,” said Sam Gerrity, Chief Executive Officer of Saratoga Casino Hotel. “Our thoughts remain with Robyn, Tim, their teams, the horse owners, and everyone affected by this tragedy. We are deeply grateful to the security personnel, first responders, and racing staff whose swift actions helped protect the horses and people in the surrounding barns.”

Industry leaders also expressed sympathy as investigators continued their work.

“This is a sobering day in our industry, a horseperson’s worst nightmare. We express our deep condolences to all impacted and thank all emergency responders and track workers for their quick response,” said Henry Westbrook Jr., President of the Saratoga Harness Horsepersons Association.

Supervisor Sarah Burger, counsel for the association, added: “This tragic loss is a reminder this can happen anywhere. My heartfelt condolences go out to all impacted. Thank you to all first responders local and state for your prompt response. We must work to learn the cause and do everything in our power to ensure this does not happen again.”

A commission panel led by Martin Mack, with Commissioners Peter Moschetti and Jerry Skurnik, will review the Saratoga incident and assess barn fire-prevention infrastructure statewide. The cause remains under investigation, and Saratoga Casino Hotel said grief counseling and a memorial service are being planned for those affected.

Featured image: Saratoga Casino via Facebook

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Australia’s media regulator has found that SBS broke gambling advertising rules when it carried a Crown Resorts commercial during live coverage of the 2025 Tour de France.

The decision, completed on March 31, 2026, focused on a 30-second Crown Sydney advertisement shown during the cycling broadcast. ACMA determined the commercial amounted to gambling advertising and was screened during a period when such promotions were not permitted.

A Crown Sydney advertisement that largely showcased restaurants, accommodation and entertainment experiences appeared to air during the time. The commercial ended, however, with the description: “Sydney’s premier casino resort.” Viewers in the Sydney market saw the advertisement during SBS coverage of the Tour de France in July 2025.

Tour de France Crown Sydney ad crossed line under live sport gambling rules

ACMA said the Tour de France met the definition of a Long Form Live Sporting Event under the applicable industry framework. Under those restrictions, gambling advertisements may only appear before play, during scheduled or unscheduled breaks, or after play between 8.30pm and 5am.

According to the regulator, the Crown advertisement containing the “casino resort” wording could not rely on an exemption available to venues that offer gambling alongside dining and entertainment. ACMA concluded the commercial drew attention to gambling in a way that directly promoted its availability.

“The mention of ‘casino’ immediately focuses the mind of the viewer on the casino (gambling) activities provided by Crown,” the ACMA said in its report.

The authority said the wording encouraged viewers to regard gambling as another activity offered at the venue. Because of that, it fell outside the exemption.

ACMA contrasted the Sydney version with two other Crown advertisements broadcast during the event. One advertisement used in other markets did not include the “casino resort” phrase, while another consisted of sponsorship references connected to SBS’s Tour de France companion program, Plat du Tour. Those advertisements were found to comply with the rules.

SBS pushed back strongly during the investigation. In a submission dated January 30, 2026, the broadcaster argued the commercial was “unambiguously focused on culinary, hospitality and accommodation experiences” and contained “no gambling imagery, language or behavioural prompts”.

“The visuals consist exclusively of dining experiences, food preparation, accommodation and entertainment amenities at Crown,” SBS told the regulator, adding that there were no depictions of gaming floors, betting interfaces, table games or gambling-related language.

The broadcaster also maintained that “casino resort” was simply an accurate description of a mixed-use venue. SBS further argued that responsible gambling messaging and assumptions about public perceptions of the Crown brand should not determine whether an advertisement qualified for the exemption.

ACMA rejected those arguments. It said a reasonable viewer would associate Crown with gambling and that describing the venue as a “casino resort” pointed to gambling services. The regulator added that alternative wording, such as “hotel resort”, could have been used if the intention was to promote accommodation and entertainment alone.

The finding concluded that SBS breached clause 3.4 of Appendix 3 of the Commercial Television Industry Code of Practice. The investigation began after ACMA monitoring of Tour de France coverage identified the advertisement.

Featured image: fanglan via WikiCommons / CC BY 2.0 / Canva

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Minnesota is telling a federal court that prediction markets carry risks ranging from gambling addiction to insider trading as officials work to preserve a new state law facing challenges from Kalshi, Polymarket and the U.S. Commodity Futures Trading Commission.

In a memorandum filed June 18, state attorneys asked the U.S. District Court for the District of Minnesota to reject requests for preliminary injunctions that would block the law before its August 1 effective date. The state maintains that the measure is a valid exercise of Minnesota’s authority to safeguard residents and protect the public interest.

“States have inherent constitutional authority to enact laws that protect the public’s health, safety, morals, and general welfare,” the state wrote in its filing.

Minnesota said lawmakers responded to concerns about the growth of prediction-market wagering and the increasing popularity of betting platforms accessible through mobile apps. The filing says legislators acted amid worries about what the state described as “surging prediction market gambling.”

Minnesota says federal law against prediction market platforms does not override gambling authority 

The latest court filing is another step in a legal fight that has drawn national attention. Earlier this year, Minnesota lawmakers advanced legislation targeting prediction market operators. The measure ultimately became part of a public safety package and would make Minnesota the first state to impose felony penalties on companies that operate, facilitate or advertise certain prediction market contracts.

Supporters of the law argued that prediction markets were functioning outside traditional gambling protections and creating opportunities for market manipulation, insider trading and excessive wagering. Companies opposing the measure have consistently argued that the contracts are financial products regulated under federal law rather than gambling activity.

The conflict intensified after Kalshi sued the state, claiming the Commodity Exchange Act preempts Minnesota’s law because Kalshi operates as a federally regulated exchange overseen by the CFTC. The CFTC later launched its own challenge, and Polymarket operator QCX LLC filed a separate case. It has since been consolidated in federal court in Minnesota.

According to the state’s memorandum, contracts tied to sports, elections, wars, legal proceedings, public emergencies and similar future events do not fall within an area of exclusive federal control. Minnesota argues that Congress never intended federal commodities laws to eliminate the longstanding authority states have exercised over gambling-related activities.

The filing also draws attention to policy concerns tied to the industry’s proliferation. Drawing on academic studies and news reports, Minnesota argues that addiction experts have warned about gambling risks, particularly among younger men, while other critics have raised concerns about insider information and self-dealing.

State attorneys referenced reports involving a servicemember allegedly placing prediction-market wagers using classified information and cited reporting that Kalshi suspended political candidates who bet on their own races. Minnesota says such examples show how these markets could create improper financial incentives and weaken trust in public institutions.

The memorandum adds that numerous countries have restricted or banned prediction markets and points to enforcement actions taken by several U.S. states. Minnesota also cited a recent filing from former CFTC Chairman Gary Gensler, including his statement: “Congress did not displace historical state police powers over sports betting through Dodd-Frank and give it to a small federal regulatory agency with no expertise in gaming regulation.”

The court has not yet ruled on the injunction requests.

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Today in prediction market news, we’re tracking the biggest developments across the industry in real time, including reports of Kalshi’s early IPO discussions, disputes over alleged fake stories and misinformation, new legislation that could reshape the sector, and other major stories impacting prediction markets, sports event trading, and regulated forecasting platforms. Follow our live blog throughout the day for breaking updates, market reactions, and analysis from across the prediction markets, crypto, and iGaming sectors.

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Kalshi is pushing back against a report that said the prediction-market platform was investigating U.S. Sen. Jim Banks and Indiana State Rep. Andrew Ireland over alleged insider trading connected to Indiana’s Secretary of State race.

Robert Denault, the company’s head of enforcement and legal counsel, said that claim is wrong and stated that Kalshi has not found evidence of suspicious activity in the market cited by the report.

“This is false. Kalshi is not investigating Sen. Banks or State Rep. Ireland. We have no evidence of suspicious trading activity in this market,” Denault wrote in a public statement.

The dispute began after a social media post from the Hoosier Enquirer said Kalshi had confirmed an investigation involving Banks and Ireland. Denault said the publication had submitted a whistleblower tip containing the allegations and received a standard acknowledgment that the information would be reviewed.

According to Denault, that routine response was later presented as proof that a formal investigation existed.

“The Hoosier Enquirer submitted a whistleblower tip to Kalshi making the claims below. We confirmed receipt and promised to look into it, as we do with all tips. They then manufactured a fake story claiming we confirmed an investigation,” Denault wrote.

He added: “This reporting is deliberately dishonest and misleading. We have sent them a cease and desist.”

After Denault’s statement, the Hoosier Enquirer posted what it said was Kalshi’s response to the whistleblower submission. In the screenshot, a message from a Kalshi compliance account states that the company had received the report and “will investigate accordingly.” The message also says Kalshi could not share updates or details on ongoing investigations and directed the publication to the company’s public disciplinary notices.

The Hoosier Enquirer cited the email as evidence that Kalshi initially indicated it would investigate the allegations, while critics of the publication argued the response appeared to be a standard acknowledgment sent when tips are received. Former Kalshi spokesperson Jacki McGavick responded publicly, writing, “That’s our standard reply to every tip. This is idiotic.”

Kalshi says safeguards and enforcement are already in place after denying Indiana probe

The disagreement comes as Kalshi has been publicly pointing to its enforcement program and insider-trading controls.

Earlier this year, the company announced new safeguards intended to automatically block political candidates from trading on markets tied to their own campaigns. Kalshi also said athletes, officials, referees, and other sports participants would be prevented from trading on markets connected to competitions in which they are involved.

The company said the changes were developed in response to growing regulatory attention and concerns about conflicts of interest in prediction markets. Kalshi has also added whistleblower reporting tools and increased monitoring of trading activity.

In February, both Kalshi and the Commodity Futures Trading Commission highlighted insider-trading enforcement actions involving a political candidate and a media insider. Kalshi said it had opened roughly 200 investigations during the previous year, with more than a dozen resulting in formal enforcement actions.

The company later identified three political candidates who were penalized for trading on markets connected to their own elections: Minnesota state senator Matt Klein, Virginia Senate candidate Mark Moran, and Texas congressional candidate Ezekiel Enriquez. Each received a five-year suspension, while financial penalties varied by case.

Those actions were tied to Kalshi Rule 5.17(z), which bars traders from participating in markets where they can influence outcomes.

Despite those enforcement efforts, Denault said the allegations involving Banks and Ireland have not resulted in a formal investigation. His statement did not address the underlying claims contained in the tip beyond saying that Kalshi has no evidence of suspicious trading and has not opened a case involving either official.

Featured image: Kalshi / Canva

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A new House proposal would block members of Congress and their immediate families from taking part in certain prediction market trades linked to government decisions, political developments, and information obtained through public service.

House Administration Committee Chairman Bryan Steil introduced the Stop Lawmakers from Predicting Act on June 18. The measure seeks to update federal ethics rules by preventing lawmakers, spouses, and dependent children from earning money through prediction market positions connected to events they may learn about through congressional work.

Steil said the goal is to eliminate concerns that elected officials could benefit from privileged information.

“The American people deserve to know their Member of Congress is not profiting off insider information. The Stop Lawmakers from Predicting Act ensures that cannot happen,” said Chairman Steil. “This legislation is critical to restoring the public’s trust in their elected officials. Lawmakers should be writing policy, not wagering on its outcome.”

Prediction market trades proposal targets concerns over insider information and political wagering

According to the bill, a “covered individual” would include any member of Congress, a lawmaker’s spouse, or a dependent child. The legislation would prohibit those individuals from entering into or offering to enter into any agreement, contract, or transaction that depends on the occurrence, nonoccurrence, or extent of the occurrence of a specific government policy, a government action, a political outcome, or any other event that comes to the attention of the covered individual as a result of congressional service. 

It would apply regardless of whether the event is directly connected to the official congressional duties of the member involved.

The House Administration Committee pointed to growing scrutiny surrounding prediction markets and the possibility that participants with access to nonpublic information could gain an advantage. Committee officials also referenced reports involving candidates who allegedly wagered on their own elections and noted that current federal law does not specifically ban lawmakers from these markets.

The proposal arrives as the prediction market industry faces broader questions about insider activity. Recent reports have showcased efforts by platforms including Kalshi and Polymarket to strengthen policies aimed at preventing insider trading and misuse of confidential information. It has fueled debate over whether additional safeguards are needed as prediction markets become more and more widespread.

Congress has also seen related legislative efforts. Earlier proposals, including the BETS Off Act, sought to limit prediction market participation by government officials and address concerns about conflicts of interest involving public servants.

If Steil’s bill becomes law, congressional ethics offices would oversee compliance and provide guidance on terms not clearly defined in the statute.

Violations would trigger financial consequences. Anyone found in breach of the restrictions would owe either $2,000 or 10% of the value of the prohibited transaction, whichever is greater. Any profits earned from the activity while covered by the law would also have to be surrendered.

The measure further states that official office accounts and campaign funds could not be used to pay those penalties. Money collected through enforcement would be directed to the U.S. Treasury’s general fund.

Former lawmakers would not escape enforcement. Ethics officials could refer unpaid penalties to the Department of Justice if a member leaves office before satisfying the requirement.

The bill would take effect 180 days after enactment and must pass both chambers of Congress before reaching the president’s desk.

Featured image: Defense Visual Information Distribution Service

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