Alberta is moving closer to the launch of its regulated online gambling market after provincial regulators approved 28 operators to enter the province ahead of the July 13 opening date.

An updated list released by the Alberta Gaming, Liquor & Cannabis Commission includes several of the biggest sportsbook brands active across North America. BallyBet, BetMGM, BetRivers, Caesars Sportsbook, DraftKings, FanDuel, PointsBet Canada, and theScore Bet all appeared on the regulator’s latest roster.

Albertans will still have access to PlayAlberta, the government-run betting platform that currently operates in the province. Regulators also expect additional operators to join after launch, as Alberta continues efforts to shift gray-market gambling activity into the legal system.

A market designed to compete quickly

The commission’s update also identified 22 approved Critical Gaming Service Providers as of May 1. That group includes major industry suppliers such as IGT and Light and Wonder, which provide technology and gaming infrastructure for sportsbook and casino operators.

Alberta’s government has been preparing for market expansion for months as officials look to create a framework similar to Ontario’s system. In comparison, Ontario opened its regulated online betting market in April 2022 and now hosts more than 30 licensed sportsbooks and casino brands.

Provincial officials believe a competitive market could generate roughly CAD $100 million in annual tax revenue while giving consumers more regulated options.

Operators begin building customer databases

Some companies have already started collecting customer registrations before launch day, including BetRivers, Caesars Sportsbook, DraftKings and theScore Bet.

The timing also lines up with a busy summer sports calendar. Alberta’s launch will arrive during the closing stretch of the World Cup, with the tournament final scheduled for July 19 at MetLife Stadium in New York. The market also opens before Week 7 of the CFL season, including Calgary’s July 18 game against the Montreal Alouettes.

Google policy changes could boost competition

Google’s updated advertising policy could further accelerate competition. Following changes announced earlier this week, licensed gambling operators are now permitted to run Google ads in Alberta.

Still, not everyone supports the province’s expansion plans. First Nations casino operators previously raised concerns that a broader online gambling market could pull revenue away from community casinos that help fund local programs and services. Critics have also warned that the province must balance revenue goals with stronger responsible gambling protections as online betting access expands rapidly across Canada.

Featured image: By AceYYC – Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=90688658

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A federal judge in Arizona has temporarily blocked state officials from pursuing gambling enforcement against Kalshi, handing the prediction market company another important court victory as legal fights over event-based trading continue spreading nationwide.

In a 17-page order released Tuesday, U.S. District Judge Michael Liburdi said federal commodities law likely takes priority over Arizona gambling rules when contracts are traded through exchanges overseen by the Commodity Futures Trading Commission.

The Court concludes that federal law preempts state gambling laws insofar as they seek to regulate derivatives exchanged on markets regulated by the CFTC,” Liburdi wrote.

The ruling granted a preliminary injunction requested by the United States and the CFTC after Arizona regulators accused Kalshi of offering illegal sports and event wagering. State officials had previously sent the company a cease-and-desist order demanding it “cease gambling operations in Arizona” while also warning that criminal penalties could follow.

Kalshi runs a federally regulated designated contract market where users trade contracts tied to election results, sporting events, and other real-world outcomes. The company has consistently argued that those products qualify as federally supervised financial derivatives rather than gambling activity controlled by individual states.

Judge says federal law likely controls event contracts

Liburdi said the Commodity Exchange Act gives the CFTC “exclusive jurisdiction” over swaps and other qualifying derivatives listed on federally regulated exchanges. He also determined Kalshi’s contracts likely meet the legal definition of swaps under federal law.

Arizona officials argued contracts tied to sports outcomes should not receive the same treatment because they rely on game results instead of economic indicators. The judge rejected that position, writing that Congress intentionally used broad statutory language and that sports results still qualify as “events” or “occurrences” under federal commodities rules.

The order also said these contracts can carry financial consequences because businesses and investors may use them to hedge against risks tied to real-world developments.

Liburdi pointed to Congress expanding derivatives oversight through the 2010 Dodd-Frank Act, saying lawmakers repeatedly strengthened centralized federal regulation. “Congress has consistently chosen centralized federal regulation of these derivatives,” the judge wrote.

National prediction markets fight continues expanding

The Arizona dispute is only one part of a larger national battle over prediction markets. Recent court decisions have produced conflicting outcomes as states challenge Kalshi’s operations. A federal appeals court in the Third Circuit recently sided with the company, while courts in other jurisdictions have allowed state gambling claims to move forward.

Separate lawsuits involving tribal gaming interests, including litigation connected to Wisconsin’s Ho-Chunk Nation, have added more pressure around whether sports-related prediction contracts improperly bypass state gaming agreements.

Supreme Court showdown remains possible

Other ongoing disputes involving the CFTC could eventually reach the Supreme Court as federal regulators and states continue fighting over jurisdiction.

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Lawmakers in Washington are preparing to take a deeper look at the booming sports betting business, zeroing in on how it could be reshaping competition and trust in games across the country.

Sen. Marsha Blackburn, who leads the Senate Commerce Subcommittee on Consumer Protection, Technology, and Data Privacy, has scheduled a May 20 hearing to dig into the issue. The session will explore how legalized betting, now widespread, is influencing both pro leagues and college athletics.

Rapid expansion of legalized sports betting

Since the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018, states have moved quickly to legalize wagering. What used to be tightly controlled has turned into a $165 billion industry spanning 39 states and Washington, D.C., with betting now just a tap away on mobile apps and newer prediction-style platforms.

Growing concerns over integrity and oversight

That rapid shift is raising alarms. Reports of suspicious activity, including possible manipulation of player performance and misuse of inside information, have surfaced across many prominent sports leagues, including the NBA, MLB, UFC, MLS, and the NCAA. Regulators and researchers are also pointing to growing public concern, with recent surveys showing many Americans believe betting expansion is outpacing safeguards.

Examining risks to fair play

The hearing, titled “No Sure Bets: Protecting Sports Integrity in America,” will bring in voices from across the ecosystem. Scheduled witnesses include Bill Miller of the American Gaming Association, Mary Beth Thomas of the Tennessee Sports Wagering Council, Scott Sadin of Integrity Compliance 360, and former congressman Patrick McHenry, now tied to the Coalition for Prediction Markets. Another witness could still be added.

Blackburn framed the discussion as a necessary response to warning signs.

Fair play is the foundation of American sports, but recent match-fixing scandals in professional sports have put a spotlight on the risks facing the integrity of competition,” she said.

“As traditional online betting platforms and new entrants like prediction markets continue to intersect with sports, we need a clear understanding of how these platforms operate and what they mean for the integrity of the game. This hearing will examine how we strengthen oversight, protect the credibility of competition, and address the growing exposure of young people and children to betting platforms.”

International warnings and rising domestic scrutiny

Concerns are not limited to the U.S. Overseas regulators have issued similar warnings, including in Europe, where officials have cautioned athletes against betting on their own competitions. Back home, scrutiny is increasing as well. New York regulators are revisiting the role of player prop bets, and college sports leaders continue to wrestle with how gambling is affecting student-athletes, some of whom report harassment tied to betting outcomes.

Sen. Ted Cruz, who chairs the full Commerce Committee, said the core issue is whether fans can still trust what they’re watching. “Fans shouldn’t have to wonder if their favorite player missed a buzzer-beater or dropped a touchdown pass because of a secret bet,” he said. “Unfortunately, recent episodes have planted that seed of doubt and raised questions about whether changes are necessary to integrity in sports. I look forward to a productive conversation about the state of sports betting in the United States.”

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A $12.8 million Arizona Lottery prize is at risk of slipping away as a court fight ramps up over who actually owns the winning ticket.

Circle K seeks to pause looming lottery deadline

Circle K has gone to court asking a judge to freeze the clock before a May 23 deadline that would otherwise wipe out the winnings under lottery rules. The company is not asking for an immediate ruling on ownership. Instead, it wants time to sort out a lawsuit that now involves the store, a clerk, and the Arizona Lottery.

Disputed ticket traced back to Scottsdale store

The ticket in question came from a November drawing of “The Pick” and was sold at a Circle K near Bell Road and 56th Street in Scottsdale. According to court filings, a customer asked for $85 in tickets but only paid $60, leaving 25 tickets behind at the counter. One of those tickets later hit all six numbers, triggering the $12.8 million win.

Circle K’s lawsuit argues that those leftover tickets were never legally purchased and therefore remained the store’s property under Arizona Lottery policy.

Ownership dispute raises questions about conduct

What happened the next morning has become the center of the legal fight. Court records say store manager Robert Gawlitza discovered the unclaimed tickets, then clocked out, changed clothes, and returned to the store to buy them for $10.

That sequence is now under scrutiny, with questions about whether he acted as a private customer or used knowledge gained on the job. The lawsuit suggests the timing could point to insider awareness that a winning ticket had been sold at that location.

Legal experts weigh in on insider knowledge claims

Attorney Josh Kolsrud, who is not involved in the case, said those details may carry significant weight. “Who goes out to their car and changes their clothing to come in to purchase tickets unless you have a plan?” Kolsrud said. He added that what the manager knew in that moment could ultimately decide the case.

If there’s any evidence that he was aware of what was going on, and used that knowledge, that insider knowledge, to buy that ticket, Circle K wins this case,” Kolsrud said.

Court asked to halt enforcement of claim deadline

Circle K is also asking the court to block the Arizona Lottery from enforcing the 180-day claim deadline while the dispute plays out. Without that pause, the ticket could expire before a judge determines ownership.

“It’s basically Circle K telling the lottery to push the brakes and not do anything until Judge Kramer decides the issues in the case,” Kolsrud said.

High-stakes outcome hinges on upcoming hearing

The signed ticket is currently locked in a safe at Circle K’s corporate office as the case moves forward. A hearing on the request for a temporary restraining order is scheduled for May 15.

The final decision holds multiple implications, both for jackpot ownership and, even more rarely for the lottery, an insider trading angle due to the day-after ticket purchase. If no legal action is taken before May 23, the multimillion-dollar prize could become worthless, leaving the high-stakes dispute with nothing to claim.

Featured image: MaiaWierer, CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0, via Wikimedia Commons

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Federal officials have entered the final review phase for a proposed casino in Kenosha, Wisconsin, following the close of public comments on its environmental study.

At this stage, the Bureau of Indian Affairs and the U.S. Department of the Interior are reviewing the full administrative record for the draft environmental assessment. What they decide next will determine whether the project clears the federal hurdle. If it does, the proposal will land on Gov. Tony Evers’ desk for another review and the ultimate call.

Under the plan, the Menominee Indian Tribe of Wisconsin would own the casino and its related operations. Hard Rock International is slated to build and run the development, which would sit on roughly 60 acres just west of Interstate 94.

What the federal review phase means for the Kenosha casino project

With public comments now closed, federal agencies are evaluating whether the project meets all regulatory requirements. Their decision will determine if the proposal advances to the state level, where final approval would rest with the governor.

Project details and economic impact

Developers envision a sizable entertainment destination centered on a casino floor featuring 1,500 slot machines, more than 50 table games and a sportsbook. The complex would also include a 150-room Hard Rock Hotel, a Hard Rock Cafe, seven more restaurants, a Hard Rock Live venue, three bars and a retail shop.

Backers continue to emphasize the project’s economic upside. Plans estimate about 1,000 construction jobs over an 18-month buildout, generating a combined payroll of $104 million. Once open, the casino and hotel are expected to employ more than 1,000 people, with average yearly pay projected at $54,000.

Environmental assessment findings and regulatory outlook

The draft environmental assessment previously concluded the development could proceed under federal law without causing significant environmental harm. That finding has helped draw support from state and local leaders, many of whom submitted comments urging federal regulators to give the green light.

Support from Wisconsin lawmakers and local officials

A bipartisan group of Wisconsin lawmakers also weighed in, including senators Robert Wirch, D-Pleasant Prairie, and Van Wanggaard, R-Racine, along with representatives Elijah Behnke, R-Oconto, Ben DeSmidt, D-Kenosha, Tip McGuire, D-Kenosha, and Jeff Mursau, R-Crivitz. In their letter, they pointed to ongoing cooperation between the Menominee Tribe and state officials.

Kenosha County Executive Samantha Kerkman pushed for the process to move ahead without requiring additional environmental review.

The county supports the Menominee Tribe’s Kenosha Gaming Project, which will bring employment and economic development to the county, and urges the BIA to move the project forward by making the requisite findings and sending it to the governor for his concurrence,” Kerkman wrote.

She also pointed to years of consistent backing. “The county has long supported a planned Menominee casino in Kenosha,” she said. “The proposal continues to have broad support. A countywide referendum in 2004 showed 56% in favor of a Menominee casino, and polling from 2022 and 2025 has continued to show strong support with 60% in favor.”

Kenosha Mayor David Bogdala said the proposal aligns with the city’s development vision. “The city anticipates the project will have a positive impact on the city’s social structure and community character,” Bogdala wrote, adding it would expand entertainment options while aligning with existing land uses.

Tribal leadership perspective on project readiness

Menominee Indian Tribe Chairman Joey Awonohopay said the backing reflects the project’s readiness to proceed. “The strong support expressed by state and local elected leaders reinforces what the environmental assessment clearly demonstrates: that this project has been thoroughly vetted and is ready to move forward, and any efforts calling for more ‘detailed’ environmental review are just an attempt to delay a project that will benefit the region and the Tribe,” he said.

“We appreciate the leadership shown by our partners at the local and state levels and their confidence that the assessment provides a complete and responsible record for decision-making,” he said.

What happens next in the approval process

The next step depends on the outcome of the federal review. If approved, the proposal will move to Gov. Tony Evers, whose decision will ultimately determine whether the Kenosha casino project moves forward.

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Chicago’s long-running casino project hit a visible turning point Thursday, as Bally’s raised the final steel beam on its permanent riverfront complex, bringing the structure up to full height after years of delays.

From delays to progress: a project years in the making

The moment unfolded at the former Freedom Center printing site, a 30-acre property in River West now being reshaped into a $1.7 billion entertainment destination along the Chicago River. Bally’s Chairman Soo Kim acknowledged the uneven path to reach this stage, telling those gathered, “We had some fits and starts. We’re going to be done early next year. We’re excited to finish it all up.” A mix of current and former city leaders attended, including Mayor Brandon Johnson and former Mayor Lori Lightfoot, alongside hundreds of construction workers standing among cranes and active machinery.

What the $1.7 billion development will include

With the topping-off complete, the project’s core structures now stand fully upright. That includes a 34-story hotel tower and the main casino building. Plans call for a 500-room hotel, a 3,000-seat theater, an exhibition hall, 10 restaurants, and 4,000 gaming positions, making it the largest casino in Illinois.

Opening timeline pushed to 2027

Chicago picked Bally’s in 2022 after a competitive bid, originally targeting an early 2026 opening. That timeline slipped as the project ran into multiple issues. Demolition was paused after debris spilled into the river, and regulators later halted work due to an unauthorized waste hauler. Engineers also forced a redesign when foundation plans raised concerns about nearby water infrastructure, prompting the relocation of the hotel tower. Bally’s now says the permanent site should open in the first quarter of 2027, aligning with a revised state deadline that allows operations at the temporary Medinah Temple casino through September of that year.

Bally’s growth strategy and financial momentum

The Chicago development comes as Bally’s reports stronger financial performance tied to expansion efforts. The company recently posted a jump in quarterly revenue, driven in part by growth across its casino portfolio and ongoing investments in major projects like Chicago. That broader momentum has helped position the riverfront development as a centerpiece of its long-term strategy.

Economic stakes for Chicago

For Chicago, the financial expectations remain high. The temporary casino generated $15.9 million in local taxes last year, falling short of projections. Officials are counting on the permanent complex to bring in more than $100 million annually.

“The casino, the hotel, entertainment venue and restaurants are anticipated to generate more than $100 million in new revenue every year,” Johnson said. “The revenue will support our police and fire pensions and our ongoing efforts to build a more equitable, safe and affordable Chicago where every community has the opportunity to thrive.”

Rising casino competition across Illinois

Competition across Illinois has intensified, with new and expanded casinos opening statewide. Kim said Bally’s is aiming to draw visitors well beyond the region.

I think this is a game changer,” Kim said. “The city wanted a facility that would actually compete… for the 50 million-plus tourists that come to Chicago. There’s nothing like this in the Chicagoland area.”

A long-term legacy for the city

As the signed beam topped with an American flag was lifted into place, Lightfoot reflected on the project’s long-term impact. “This is so important to the financial future of our city, which is why I personally fought so hard to make this happen,” Lightfoot said. “It’s not like birthing a child, but it’s pretty damn close. This is a lasting legacy for the city.”

Featured image: Max Bender/Unsplash

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The U.S. Senate has moved quickly to prohibit its own members from trading on prediction markets, citing growing concern over insider advantages and ethical gray areas tied to the fast-expanding platforms. In a unanimous April 30 vote, lawmakers approved a rule barring senators, staff, and Senate officers from participating, with immediate effect.

Rising scrutiny over prediction market access

Pressure had been building as watchdogs and policymakers raised concerns that access to sensitive or nonpublic information could provide an unfair edge in markets where users trade on real-world outcomes such as elections and geopolitical events. Even indirect insights into policy or global developments could translate into profitable positions.

Bipartisan push gains momentum

Sen. Bernie Moreno led the bipartisan effort, arguing the measure is necessary to maintain public trust. Lawmakers across party lines have increasingly warned about the risks of combining public service with speculative financial activity in fast-moving markets.

Broader regulatory efforts take shape

The Senate’s move aligns with a wider push in Washington to tighten rules around financial activity by public officials. Concerns over congressional stock trading have persisted for years, and prediction markets are emerging as a new focal point. A bipartisan House proposal is already being developed to extend similar restrictions.

States and industry respond to pressure

Beyond Congress, Kathy Hochul has backed restrictions aimed at preventing state employees from engaging in insider-style trading on prediction platforms.

Meanwhile, companies like Kalshi and Polymarket say they already prohibit insider trading and have implemented safeguards to limit conflicts of interest.

Regulatory uncertainty continues

Regulators, including the Commodity Futures Trading Commission, are still determining how to classify and oversee prediction markets, which blur the line between financial exchanges and gambling products. As the sector grows, the Senate’s action marks a clear signal that lawmakers are prepared to impose stricter boundaries between public duties and private financial activity.

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New York is kicking off a broad, decade-long study to better understand how people across the state gamble and where support systems may be falling short. Governor Kathy Hochul says the effort is meant to bring clearer insight into addiction risks and how services can respond.

Statewide study aims to track gambling behavior over time

The project will reach adults 18 and older in every region, using surveys, interviews, and focus groups to paint a detailed picture of gambling habits, awareness, and addiction rates. The New York State Office of Addiction Services and Supports will run the study, and officials say the findings will directly shape prevention and treatment programs in the years ahead.

New York State remains committed to helping those impacted by problem gambling, which can affect anyone, regardless of age or where they live,” Governor Hochul said. “We look forward to gaining valuable insight into the gambling behaviors of New Yorkers as part of this effort, as we continue to work to raise awareness of this issue. This effort will help ensure we’re using real data to guide smart, targeted investments that protect New Yorkers and strengthen access to care.”

Researchers plan to follow trends over time, looking closely at how gambling affects different communities and where gaps in outreach or care may exist. Broader research has already shown that gambling can carry significant financial and psychological risks, particularly among high-frequency users.

Expansion of legal gambling drives urgency for research

State leaders point to the rapid growth of legal gambling, including mobile sports betting, as a key reason for launching such an extensive study now. As options expand, they say, so does the need to identify risks early and make sure services keep up.

“As gambling opportunities continue to expand in New York State, we need to be proactive and determine where additional services may be needed to help those affected by gambling addiction,” said Office of Addiction Services and Supports Commissioner Dr. Chinazo Cunningham. “The results of this effort will help to inform future plans and initiatives, ensuring that New Yorkers remain protected from gambling harms, and that those impacted are able to access the services they need.”

OASAS to use findings to shape treatment and prevention

The research will also help guide planning across prevention, treatment, harm reduction, and recovery programs. OASAS already oversees inpatient and outpatient care, recovery centers, and peer support networks. Regional Problem Gambling Resource Centers provide local help, while partnerships offer financial counseling for people dealing with gambling-related debt.

Existing support systems and public awareness efforts

Public awareness has been another focus, including the state’s “Take a Pause” campaign, which encourages residents to reflect on their gambling habits and seek help when needed.

Research also highlights that certain groups, such as younger adults and students, may face elevated risks, reinforcing the need for targeted education and early intervention.

Stronger regulations and safeguards under consideration

At the policy level, oversight is also tightening. In her 2026 State of the State address, Hochul directed regulators to strengthen protections for young people and examine new tools to flag risky behavior.

That includes proposals already under discussion to curb underage betting and limit how platforms use artificial intelligence in gambling environments, as previously reported in New York’s push to curb youth online gambling.

“As we’ve seen gambling opportunities increase, so has our responsibility to ensure that those facing gambling harms have prompt access to help,” said Gaming Commission Chair Brian O’Dwyer. “This survey will help direct resources where they are needed most and help guide future gaming policymaking to ensure that New York State always prioritizes responsible gambling practices.”

Long-term study reflects growing concern over gambling impact

Lawmakers say the long-term study reflects a growing recognition that as gambling becomes more common, understanding its impact is essential. Other research has shown that gambling-related harms can affect a wide range of demographics, including older adults, underscoring the importance of long-term data collection and targeted support strategies.

Featured image: Canva

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New York City’s gambling landscape shifted in a major way this week as a long-running slots venue in Queens officially transformed into the city’s first full casino with live table games.

The expanded Resorts World New York City, located near Aqueduct Racetrack and John F. Kennedy International Airport, opened Tuesday with a ceremonial dice roll and a newly built gaming floor featuring more than 200 live-dealer tables. Blackjack, craps, baccarat and roulette are now available alongside more than 2,500 slot machines already operating at the site.

The opening marks the first time traditional table games have been offered within New York City limits, a milestone for a market that had previously required gamblers to travel upstate or to neighboring states for that experience.

The Queens facility has operated for more than a decade as a “racino,” offering only slot-style video lottery terminals. Its transition to a full-scale casino follows the awarding of new downstate gaming licenses, positioning Resorts World as the first of three approved projects to begin operations. Other planned casino developments in Queens and the Bronx remain years away.

A bigger vision taking shape

Company officials say the launch is just the first phase of a much larger plan. The operator, Genting Americas East, has outlined a $5.5 billion expansion that would turn the site into a full resort destination. Plans include a hotel, additional gaming space, restaurants, a 7,000-seat entertainment venue and more than a dozen acres of public green space.

With our planned $5.5 billion expansion, this is only the beginning of something much bigger for Resorts World and for New York,” said Robert DeSalvio, president of Genting Americas East, according to the Associated Press.

NYC’s casino competition begins to take shape

The opening ceremony drew local officials and public figures, including rapper Nas, who joined executives in rolling the first dice to mark the launch.

The project arrives as New York pushes to expand legalized gambling in the downstate region. State regulators approved three casino licenses in late 2025, aiming to generate tax revenue and economic activity while bringing casino-style gaming closer to the city’s population.

For now, Resorts World has a significant head start. Competing proposals, including an $8.1 billion casino complex near Citi Field and a $4 billion development in the Bronx, are still in earlier stages and are not expected to open for several years.

Queens casino takes early lead in downstate rollout

That timing gives the Queens casino a unique window as the only full-service gaming venue in the nation’s largest city. Company leaders say more table games and slot machines will be added later this year as operations ramp up.

The debut marks a turning point for New York City, where full-scale casino gambling has long been debated but is now becoming a reality.

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A U.S. Army Special Forces soldier has pleaded not guilty to federal charges accusing him of using classified knowledge to profit on a prediction market, a case that is drawing fresh scrutiny to how insider information can be exploited in emerging betting platforms.

Gannon Ken Van Dyke, 38, entered his plea Tuesday in Manhattan federal court. Prosecutors say he used nonpublic details tied to a U.S. mission targeting Venezuelan leader Nicolás Maduro to guide bets on Polymarket, an online platform where users wager on real-world outcomes.

According to the charges, Van Dyke turned roughly $33,000 in wagers into more than $400,000 by betting on developments linked to Maduro’s removal from power. Investigators say his role in planning the operation gave him access to sensitive timelines and likely outcomes before they became public.

Case centers on classified information and betting

Federal prosecutors have brought multiple counts, including theft of government information, commodities fraud, wire fraud and unlawful financial transactions. They say the case will lean on a wide range of evidence, from cryptocurrency exchange records to social media activity and materials obtained through search warrants and subpoenas.

Authorities contend the bets were placed shortly before key developments in a covert operation carried out between late 2025 and early 2026, which ultimately led to Maduro’s capture. Van Dyke has been released on $250,000 bail with travel restrictions tied to his work and residence. A pretrial conference is set for June.

First major insider trading case in prediction markets

The case stands out because it is the first criminal prosecution centered on insider trading in prediction markets filed by the DOJ, marking a significant expansion of how U.S. authorities apply fraud and commodities laws.

These platforms, including Polymarket, allow users to trade on the likelihood of events, functioning in ways that can resemble financial markets but with looser historical oversight.

Platforms and regulators step up oversight

Polymarket itself prohibits trading based on nonpublic, market-moving information and says it monitors for suspicious activity. In this case, officials say the platform flagged the betting patterns and alerted authorities, highlighting growing industry efforts to police misuse.

At the same time, regulators are beginning to respond more aggressively. Legal experts say the case underscores that prediction markets are not exempt from insider trading rules and that existing laws can be applied to the misuse of confidential information in these environments.

Growing concerns about insider trading risks

Experts say insider trading in prediction markets works similarly to traditional financial markets: someone with advance knowledge of an event can place bets before the information becomes public, locking in profits once the outcome shifts market prices. The rapid growth and often pseudonymous nature of these platforms have made enforcement more challenging, raising concerns about potential loopholes and market integrity.

Van Dyke has not commented publicly beyond his plea. As the case moves forward, it is expected to test how existing fraud and securities-style laws apply to this fast-growing corner of online wagering.

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Federal regulators have taken Wisconsin to court, turning up the heat in a widening fight over who gets to police the fast-growing world of prediction markets.

The Commodity Futures Trading Commission filed its lawsuit just days after Wisconsin launched its own civil cases against five companies: Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase. State officials accuse those platforms of running what amount to illegal sports betting operations, describing the alleged conduct as felony violations under Wisconsin law. All five companies operate in areas the Commodity Futures Trading Commission says fall squarely within its jurisdiction.

Federal regulator pushes back on state authority

At the heart of the dispute are prediction markets, where people trade contracts tied to the outcome of real-world events. Congress handed the CFTC authority over many types of derivatives decades ago, and the agency says that mandate includes certain event-based contracts when platforms are registered as designated contract markets.

States like Wisconsin are taking a different approach. By treating these platforms as gambling operations, state regulators are trying to bring them under local law, setting up a direct collision with federal oversight.

States cannot circumvent the clear directive of Congress,” said Michael S. Selig. “Our message to Wisconsin is the same as to New York, Arizona, and others: if you interfere with the operation of federal law in regulating financial markets, we will sue you.”

Legal battle expands across multiple states

The Wisconsin case didn’t emerge in isolation. The CFTC recently filed a similar lawsuit against New York after that state pursued its own crackdown on prediction market platforms. The agency has also targeted Arizona, Connecticut and Illinois, while weighing in on related disputes through filings in higher courts, including the U.S. Court of Appeals for the Ninth Circuit and Massachusetts’ top court.

In some instances, the federal government is coordinating more broadly. The Department of Justice has joined the CFTC in backing arguments that federal law preempts state gambling statutes when it comes to regulated financial products. Those arguments could ultimately land before the U.S. Supreme Court as the number of cases grows.

What comes next for prediction markets

A recent ruling in Arizona shows how high the stakes have become. In a case brought by the CFTC, a federal judge issued a temporary restraining order that blocked a state criminal prosecution against a company overseen by the agency. The decision marked an early, but significant, victory for the federal position.

What happens in Wisconsin could shape the next phase of the fight. As prediction markets expand into new categories and attract more users, courts may have to draw clearer lines between financial regulation and gambling law. For now, the CFTC appears ready to press forward aggressively, signaling that this legal clash is far from over.

Featured image: Sasun Bughdaryan/Unsplash

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A financial reform advocacy group is urging courts to keep oversight of gambling-style online markets at the state level, arguing that a federal commodities regulator lacks both the authority and capacity to manage them.

Better Markets made its case in an amicus brief supporting Massachusetts in a growing legal dispute over prediction markets, platforms where users trade contracts based on real-world outcomes.

Prediction markets framed as gambling

According to Better Markets, these platforms operate more like gambling than traditional financial instruments and should therefore fall under state jurisdiction rather than the Commodity Futures Trading Commission (CFTC).

Dennis Kelleher, Co-founder, President, and CEO of Better Markets, sharply criticized the federal agency’s involvement, pointing to alleged misconduct on some platforms. Kelleher cited rising reports of insider trading and other abuses on platforms such as Kalshi, arguing that the CFTC is not equipped to effectively police such activity.

He described the agency as under-resourced and ill-suited to regulate what he characterized as “unregulated online casinos” attempting to bypass state gambling laws.

Massachusetts intensifies legal action

The debate comes as Massachusetts escalates its scrutiny of prediction market operators. State regulators have already secured an injunction limiting aspects of Kalshi’s operations and imposed a 30-day deadline for the company to implement geofencing to block in-state users.

Meanwhile, the Massachusetts Gaming Commission has warned that certain event-based contracts may violate state gambling laws, prompting further legal challenges, including a lawsuit from Polymarket seeking to block those restrictions.

Broader legal battle expands nationwide

The Massachusetts case is part of a wider national clash between state regulators and federal authorities. The CFTC has filed lawsuits and legal actions across multiple states to defend its claim of exclusive jurisdiction over prediction markets, setting up a conflict that could reshape how these platforms are regulated in the U.S.

Legal experts increasingly believe the issue could escalate to the highest level, with the Supreme Court potentially stepping in to resolve whether prediction markets fall under financial regulation or gambling law.

Ongoing clash between state and federal authority

Better Markets argues that Congress never intended for the CFTC to oversee gambling or act as a nationwide authority on event-based betting markets. The group also raised broader concerns about lightly regulated prediction markets, including risks of corruption, insider trading, and increased problem gambling.

At the center of the dispute are platforms like Kalshi, which operate under federal commodities law but face mounting resistance from state officials who view them as unlicensed gambling operators.

Courts to decide future of prediction markets

Better Markets maintains that states are better positioned to regulate gambling within their borders and is calling on the CFTC to refocus on its core mission of overseeing derivatives markets. The case highlights a widening national debate over whether prediction markets should be treated as financial instruments or traditional gambling, an issue now increasingly being decided in the courts.

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Alberta is moving ahead with plans to expand online gambling, a shift that is already raising concern among some First Nations leaders who rely heavily on revenue from brick-and-mortar casinos.

The province is aiming to launch its new iGaming system on July 13 after passing the iGaming Alberta Act, which establishes a framework allowing private companies to operate under provincial regulation. Officials say the goal is to bring structure to a market where a significant share of betting already takes place through offshore or unregulated platforms.

The expansion comes as global gambling operators prepare to enter the province. Companies such as DraftKings are already positioning themselves for Alberta’s opening market, viewing it as part of a broader North American push into newly regulated jurisdictions.

Concerns from First Nations over casino revenue

Despite the economic ambitions behind the plan, the proposal is drawing criticism from Indigenous leaders who warn it could undermine land-based casino revenues that support essential community programs. One First Nations chief told CBC News the province has not gone far enough to protect communities that depend on casino income.

If this goes ahead the way it is, it’s going to have a devastating impact on our communities,” the chief said.

Casinos on First Nations land play a central role in funding local services, employment, and economic development. Leaders fear that easier access to online gambling could reduce foot traffic at physical venues, cutting into a key source of revenue.

Province points to regulated growth and competition

Provincial officials argue the shift is necessary to modernize gambling regulation and capture activity already happening outside the legal system. Alberta is seeking to follow a model similar to Ontario, where multiple private operators compete under provincial oversight rather than a single government-run platform.

The broader policy shift is part of a wider strategy to expand regulated gambling markets across Canada. Alberta’s approach is also being watched as part of a growing national trend toward opening online gambling to private operators.

“This is part of economic reconciliation,” Service Alberta Minister Dale Nally said in an interview with CBC News.

“We’re not trying to take anything away from First Nations. We’re trying to grow the pie,” he added.

Under the proposed model, about 2 percent of online gambling revenue would be directed to First Nations groups, alongside funding for responsible gambling programs.

Shift mirrors broader North American policy changes

Alberta’s move also reflects broader policy changes across North America, where several jurisdictions are expanding or restructuring regulated betting markets.

For example, Wisconsin recently advanced legislation allowing expanded mobile sports betting tied to tribal gaming agreements, highlighting how governments are increasingly negotiating gambling frameworks that include Indigenous participation.

Uncertainty ahead of launch

Forecasts suggest Alberta’s online gambling market could grow rapidly once launched, potentially generating hundreds of millions of dollars annually.

Still, for First Nations leaders, the central concern remains how revenue will be divided and whether the growth of online gambling will come at the expense of existing casino operations that currently sustain many communities.

Discussions between the province and Indigenous groups are expected to continue as the July launch date approaches.

Featured image: Chris Robert/Unsplash

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A New Jersey man has gone to court with a wide-ranging class action that takes aim at a major online gaming site and several well-known entertainers, accusing them of running what he describes as an illegal gambling operation with ties to music streaming manipulation.

The case, filed in Monmouth County Superior Court, focuses on Sweepsteaks Ltd., the company behind Stake.us. The plaintiff, Jason Nufio, argues the site presents itself as a “social casino” while actually operating like a real-money gambling platform that New Jersey users are not supposed to access.

This consumer class action seeks to stop Stake.us—an illegal online gambling platform…from continuing to prey upon consumers,” the complaint states.

Nufio says he ended up spending money after seeing promotions featuring big names like Drake, Adin Ross, and DJ Akademiks. The lawsuit also names Kick Streaming Pty Ltd., describing it as a key channel used to showcase the platform.

“Gold Coins” system at the center of the dispute

At the center of the dispute is how the site handles money. Users buy virtual “Gold Coins,” which come with “Stake Cash” that can be redeemed for real-world value. The complaint claims that the setup is meant to sidestep gambling restrictions while still letting users wager and cash out.

“Thus, the use of Gold Coins is a blatant proxy for the use of real money—a fig leaf to superficially avoid the appearance of illegal gambling,” the filing states.

Allegations of manipulated outcomes are challenged

According to the lawsuit, livestreams played a major role in attracting users. It claims Drake and Adin Ross streamed themselves gambling with funds quietly supplied by the company, giving viewers the impression they were risking their own money.

This deceptive arrangement concealed the fact that Drake and Ross faced no genuine financial risk,” the complaint says, “while ordinary consumers…stood to lose real money.”

The filing goes further, alleging that outcomes were manipulated in some cases. “Stake has outright rigged its own games in favor of Drake and Ross,” it alleges.

Including information from Bloomberg Businessweek in the lawsuit is a notable wrinkle, as separate reporting highlighted by PokerScout has pushed back on claims that high-profile wins on the platform prove rigging, arguing that streaks can be explained without manipulation.

Music streaming manipulation and alleged financial networks

The lawsuit also branches into music, claiming gambling proceeds were funneled through an internal tipping system to finance bot networks that inflate streaming numbers. At the center of that accusation, the filing states: “Drake—acting directly and through…co-conspirators—has deployed automated bots and streaming farms to artificially inflate play counts of his music.”

It describes the tipping system as opaque and difficult to track, calling it “an unlimited and wholly unregulated money transmitter” that “appears to exist outside the oversight of any financial regulator.”

Broader legal scrutiny and related cases

The claims arrive as similar scrutiny grows elsewhere. A separate lawsuit filed in New York has raised concerns about underage access to gambling-style platforms, naming both Stake and Coinbase in allegations that minors were able to participate.

Plaintiff’s claims and legal relief sought

Nufio says he would have stayed away entirely if he had known what he now alleges. “Had Plaintiff known…he would not have signed up for an account or spent money on the platform,” the complaint states.

The suit seeks damages, restitution, injunctive relief, and enhanced penalties under New Jersey racketeering law. It also challenges the platform’s arbitration clause and class action waiver. None of the defendants has responded to the allegations in court so far.

Featured image: Wesley Tingey/Unsplash

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Wisconsin has filed a civil complaint in Dane County Circuit Court accusing Kalshi, Robinhood, and Coinbase, along with affiliated subsidiaries, of operating what it describes as illegal sports betting through prediction markets and event contracts under state law.

The complaint opens by reaffirming the state’s gambling restrictions, stating: “Sports betting has long been illegal in Wisconsin, with exceptions only for certain Native American tribal gaming operations.”

It further alleges coordinated conduct among the companies: “Yet three companies—Kalshi, Robinhood, and Coinbase—are working together to facilitate illegal sports betting throughout the state.”

State alleges disguised sports wagering through “event contracts”

Wisconsin argues the platforms are effectively enabling sports wagering while rebranding it as financial trading. The complaint states: “Through their so-called ‘prediction markets,’ Kalshi, Robinhood, and Coinbase profit from Wisconsin residents placing bets on the outcome of sporting events, just like how ordinary casino sportsbooks profit from the bets people make there.”

The filing contends that the underlying structure mirrors traditional gambling products despite its financial-market framing.

College basketball betting used as key example

As part of its argument, Wisconsin cites specific examples from college athletics betting activity. The complaint notes:

For instance, Wisconsinites could use these companies’ services to place all kinds of bets on the recent NCAA college basketball tournament, including who would win the Final Four matchup between the University of Michigan and the University of Arizona, which team would cover the point spread, and even which team would first score ten points.”

The state argues these offerings demonstrate that the platforms are functionally indistinguishable from sportsbook-style wagering.

Allegation of “casino-style” mechanics behind trading language

The complaint also focuses on how the platforms generate revenue, stating: “And for every bet made, these companies collect a fee akin to a casino’s rake at a poker table.”

Wisconsin argues that this fee structure reinforces its claim that the companies are operating gambling services rather than neutral financial marketplaces.

The filing further claims the companies use financial terminology to mask gambling mechanics. It states: “Kalshi, Robinhood, and Coinbase use a fig leaf to disguise the casino-style sports betting they facilitate in Wisconsin.”

“They relabel their sports bets as ‘event contracts,’ meaning contracts traded between buyers and sellers at agreed-upon prices that mimic the odds of a sports-related outcome.”

Pricing structure tied to implied probabilities

Wisconsin also details how contract pricing reflects real-time probability estimates.

“As of April 3, 2026, traders could buy contracts taking the position that the University of Michigan would win its Final Four matchup with the University of Arizona for around $0.53, which reflected a roughly 53% projected chance of Michigan winning.”

It adds that payouts function in binary fashion: winning positions pay $1 per contract, while losing positions expire worthless, mirroring traditional betting outcomes.

Broader legal pressure on prediction markets

Separately, prediction market operators are facing increasing regulatory scrutiny across multiple jurisdictions. In New York, regulators and prosecutors have pursued actions involving Coinbase and Gemini over compliance and consumer protection concerns tied to trading products.

Kalshi is also engaged in ongoing litigation, including an injunction request in Montana seeking to block state-level restrictions on its contracts, while an Arizona court is handling procedural disputes in a separate challenge involving the classification of event contracts.

Wisconsin seeks injunction and legal classification

Wisconsin is asking the court to halt the companies from offering sports-related event contracts within the state, declare the activity unlawful under gambling statutes, and classify it as a public nuisance requiring immediate relief.

Featured image: Kenneth C. Zirkel, CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0, via Wikimedia Commons

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Federal prosecutors in Manhattan have accused a U.S. Army soldier of turning secret military knowledge into a lucrative betting scheme, saying he pocketed more than $400,000 by wagering on a classified operation.

According to court filings, Van Dyke was stationed at Fort Bragg and had access to classified planning materials related to the operation, which aimed to capture Maduro. He had signed agreements explicitly barring him from disclosing or using that information.

Bets on Maduro’s capture

Prosecutors say he created a Polymarket account in late December 2025 and placed around 13 bets. Each wager backed outcomes tied to U.S. military involvement in Venezuela and Maduro’s removal from power. In total, authorities say he staked about $33,000, consistently betting “YES” on those scenarios.

Events unfolded quickly. In the early hours of Jan. 3, 2026, U.S. special forces captured Maduro in Caracas. Once the operation became public, the prediction markets resolved in Van Dyke’s favor, bringing him roughly $409,881, according to prosecutors.

Prosecutors: “Clear Insider Trading”

Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain,” Clayton said, calling the alleged conduct a direct breach of federal trust and national security obligations.

Prosecutors argue that Van Dyke’s actions meet the definition of insider trading in substance, if not in traditional market form, because they relied on nonpublic military intelligence to generate profit. They say the trades were not based on analysis or speculation, but on advance knowledge of a real-world classified operation’s timing and outcome.

Alleged attempts to conceal funds

According to court filings, Van Dyke allegedly took steps to obscure the source and movement of his winnings shortly after the operation became public. Prosecutors say he transferred funds through cryptocurrency channels designed to mask transaction history, including routing assets through a foreign-based digital wallet service before moving them into a brokerage account.

Authorities also allege he attempted to delete or deactivate his Polymarket account and modified related crypto account details in an effort to disrupt the financial trail.

Blanche underscored the government’s position on misuse of classified access, stating that service members are entrusted with sensitive intelligence solely to execute missions, not to derive personal financial benefit from it.

Growing Scrutiny of Prediction Markets

The case arrives amid increasing scrutiny of prediction markets and event-based trading platforms. Regulators and lawmakers have raised concerns about insider access to politically or militarily sensitive information being used for profit.

In a separate case, political candidates have also faced penalties tied to trading on election-related contracts, underscoring broader concerns about market integrity.

FBI, DOJ response and potential sentencing

“Today’s announcement makes clear no one is above the law,” Patel said, adding that the FBI would act to protect national security and classified information.

If convicted, Van Dyke faces up to 20 years in prison on the wire fraud count, along with additional penalties on related charges. Prosecutors say sentencing would ultimately be determined by a judge.

Featured image: Wesley Tingey/Unsplash

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Caesars Entertainment is now facing a proposed federal class action that says the casino and hotel company failed to protect customer information during a second cyber incident, coming after its widely reported 2023 breach.

The case was filed in Nevada on behalf of plaintiff Mark Huddleston, a Texas resident who says he has belonged to Caesars Rewards since 2007 and has regularly gambled with Caesars both online and in person. He says Caesars gathered personal information through those transactions and loyalty program activity over many years.

Huddleston is seeking to hold Caesars responsible for injuries allegedly caused by “Caesars’s inadequate data security,” which the complaint says resulted in private information being exposed to unauthorized third parties. The filing refers to the incident as the “Data Breach.”

According to the lawsuit, reviewed by ReadWrite, Caesars had already experienced a data breach in September 2023. It alleges that despite that earlier event, the company “failed to implement the requisite security measures, and failed to prevent another Data Breach from occurring in early 2026.”

The complaint says customer data was again taken by cybercriminals, leaving proposed class members exposed to “an elevated and significant risk of fraud and identity theft.”

Caesars alleged data breach puts privacy promises under scrutiny

The suit says information affected in the 2026 incident included at least customer contact details and dates of birth. It adds that based on what was exposed in 2023, “it can be expected that even more sensitive information, including Social Security numbers and driver’s license numbers were also stolen in 2026.”

The complaint also points to Caesars’ privacy policy, which states: “We maintain physical, electronic and organizational safeguards that reasonably and appropriately protect against the loss, misuse and alteration of the information under our control.”

Huddleston argues those promises were misleading. The lawsuit says Caesars “did not ‘maintain physical, electronic and organizational safeguards that reasonably and appropriately protect against the loss, misuse and alteration of the information under our control.’”

It further claims customers still face long-term consequences because their information may remain in circulation. The filing says class members now face “a present and continuing risk of fraud and identity theft for years to come.”

The proposed nationwide class would include “All persons in the United States whose Private Information was compromised in the Caesars’s Data Breach discovered in March, 2026.”

Claims in the case include negligence, breach of implied contract, unjust enrichment, negligence per se, and alleged violations of the Nevada Consumer Fraud Act. The suit seeks damages, credit monitoring, identity theft protection services, and court-ordered security improvements.The Caesars case arrives as other gambling operators face similar scrutiny. ReadWrite recently reported the litigation tied to alleged Wynn Resorts data breaches, including a separate federal class action. We also found that German gambling company Merkur was hit by a major cyberattack.

ReadWrite has reached out to Caesars Entertainment for comment.

Featured image: Bernard Spragg via Flickr / CC0 1.0

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Sportradar pushed back hard Wednesday after a short-selling firm accused the company of having meaningful links to unlawful betting sites.

“A short report issued today contains factual inaccuracies about the company, and we unequivocally challenge these assertions,” a Sportradar spokesperson told ReadWrite.

The company said the report misread both its operations and the wider betting market.

The spokesperson added: “The report demonstrates a fundamental misunderstanding of our business and the industry and was authored by a short seller trying to erode shareholder value and profit from stock disruption.”

Callisto Research published the report and disclosed that it held a short position in Sportradar shares. It says Sportradar’s image as a sports integrity specialist conflicts with allegations that some websites using its tools or feeds operate unlawfully.

Callisto said it found “over 270 individual platforms” that it says use Sportradar products or services while operating illegally in regulated or prohibited markets. It also alleged that some lacked licences and that certain regulators had started reviews.

ReadWrite has not independently verified those allegations.

Sportradar compliance questions and short seller market reaction to alleged illegal betting

Sportradar answered by pointing to its controls, licensing checks and public disclosures.

“Sportradar works exclusively with licensed operators, follows strict global compliance, and due diligence standards, and we stand by our independently audited financial statements, risk disclosures, and information provided to investors and regulators,” the spokesperson said.

The company also stressed its internal standards.

The company added: “We conduct our business with the highest ethical standards consistent with company policies, laws and regulations.”

The Callisto document focuses on examples where Sportradar widgets, virtual sports products, backend tools or branding allegedly appeared on sites aimed at places where gambling is limited or banned. Separate appendices released with research materials from Muddy Waters Research describe technical methods used to identify what the authors said were customer integrations. These included reviews of client IDs, widget loaders and licensing endpoints.

Even so, code snippets, branding elements, old references or third-party integrations on external websites do not automatically prove a current commercial relationship. They also do not by themselves establish knowledge, misconduct or a regulatory breach by Sportradar.

Short-seller reports are written by investors who benefit if a company’s share price drops. That does not mean every claim lacks merit, but it does mean the research comes from an interested party. Such reports commonly include disclaimers stating they are not investment advice. At the time of writing, Sportradar stock was down 23% ahead of reporting its first quarter results on May 6.

Sportradar sells sports data, integrity monitoring and betting technology to leagues, bookmakers and media groups around the world. Because the company has long promoted anti-match-fixing work and regulatory compliance, any prolonged scrutiny of those claims could draw investor attention even while management firmly rejects the accusations.

As of publication, no regulator had publicly announced enforcement action against Sportradar tied to the specific allegations in the report.

Featured image: Sportradar

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New York Gov. Kathy Hochul has signed an executive order blocking state workers from using confidential government information to make money on prediction markets, calling the practice a threat to public trust.

The order was signed on Wednesday (April 22) in Albany and took effect immediately. It applies to covered state officers and employees. They are barred from using “any nonpublic information obtained in the course of their official duties” to seek gains or avoid losses through trades on prediction market platforms. They also cannot help other people profit by passing along inside information.

Violations can bring dismissal, other discipline, and possible referrals to law enforcement or ethics agencies.

“Getting rich by betting on inside information is corruption, plain and simple,” Hochul said in the state’s announcement. “Our actions will ensure that public servants work for the people they represent, not their own personal enrichment.”

Prediction markets let users buy and sell contracts based on whether future events happen. The governor’s office said those events can include “outcomes of military activity, election results, or the severity of natural disasters,” along with “obscure and manipulable events” such as “the attire of public officials at appearances” or “the volume of social media posts made by an individual.”

How the Hochul insider trading order reaches prediction markets

The executive order says ethics rules need to keep pace with newer trading platforms. It states that “the maintenance of public trust is founded on the principle that public servants are charged with using their positions to benefit the public good,” and that officials should not use access to government information “for personal financial gain.”

It also says the “recent proliferation of prediction markets” has raised the risk that people with privileged knowledge may try to profit by “trading on insider information.”

Each public authority in New York is directed to adopt matching policies for officers and employees who serve at the pleasure of the appointing authority. The order defines a prediction market as an exchange-traded platform or service not licensed or permitted by the New York State Gaming Commission, where participants trade contracts tied to future events including elections, sports, economic indicators, or the actions and speech of individuals.

The move lands as prediction markets face heavier scrutiny across the country. We previously reported the controversy around a Polymarket contract tied to Venezuelan leader Nicolás Maduro, where questions were raised about settlement decisions and whether insiders could benefit from opaque processes.

In a video statement posted on X, Hochul pointed to what she called “really suspicious bets with huge payoffs” including the Polymarket contract tied to Venezuelan leader Nicolás Maduro, markets on the timing and location of military actions in Iran, and even bets on the length of White House press briefings. She said insider trading in stocks has long been illegal, but argued similar conduct on prediction markets can happen with “zero consequences.”

She also drew a contrast with Washington, saying, “some in Washington think this is fair, but here in New York, we say no.”

The state has also been aggressive in policing other financial platforms. State regulators have pursued major crypto companies including Coinbase and Gemini in separate legal actions centered on compliance, disclosures, and consumer protections.

At the same time, state Sen. Joseph Addabbo Jr. has pushed legislation that would create a regulated path for prediction markets in New York, arguing oversight is better than leaving the activity offshore or unlicensed.

Hochul’s office said the order comes amid “increasing public scrutiny over the role of prediction markets and the need for further regulations of this emerging industry.” It also said New York is taking steps against platforms that engage in “unlicensed and unlawful gambling operations.”

Featured image: Marc A. Hermann / MTA / CC BY 2.0 / Canva

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Prediction-market exchange Kalshi has publicly identified three political candidates it says violated rules that bar traders from betting on contests they can influence. Their names appeared in formal enforcement notices after the company first announced the cases without identifying anyone.

Kalshi earlier published a company update titled “Enforcement update: Kalshi continues crackdown on political insider trading,” saying three investigations had been completed. The company wrote: “Today, we’re releasing notices related to three enforcement investigations.” It added that “All three cases concern political insider trading and were flagged because of our newly released safeguards to block political candidates from trading on their own elections.”

It described the punishments but did not name the people involved. Public disciplinary records linked to the update identified them as Matt Klein, Mark Moran, and Ezekiel Enriquez. 

Who are the alleged election candidates penalized by Kalshi?

Prediction markets appear to be pushing deeper into the worlds of politics and sport, raising urgent questions about whether they can truly guard against insider advantage. Critics warn that when candidates, campaign operatives, donors, or others with privileged access are allowed to trade on election-linked contracts, the integrity of those markets is immediately called into question.

Kalshi, for its part, says it is tightening the net. The company has stated stronger restrictions on politicians and athletes, increased automated surveillance, and improved reviews designed to identify conflicts before they can distort the market, following another two insider trading cases.

The company said the three matters showed how internal controls can identify improper activity. In its update, Kalshi said the cases demonstrated how “developing proactive engineering solutions can help identify illicit trading activity.”

Kalshi has also argued that prediction markets can function as information tools rather than gambling products. However, it depends heavily on confidence that insiders cannot profit from private knowledge or direct control over outcomes.

The three candidate cases

In the first matter, a settlement notice said Klein had “announced himself as a candidate for public office and was added as a market option for a contract on [election].” The notice continued: “As a candidate, Klein qualified as a direct decision maker for the contract and had direct influence on the outcome of the Underlying event.”

Kalshi said Klein then traded “in violation of Rule 5.17(z),” which prohibits users from trading on markets where they are a decision-maker or have influence over the outcome.

Under the settlement, Kalshi suspended Klein from direct or indirect access to the platform for five years and imposed a $539.85 financial penalty.

Klein is a Democratic Minnesota state senator and reported he admitted making a $50 wager. In a statement on X, Klein wrote: “In October 2025 I heard from friends that there was a prediction market site with wagers on my primary race. I had never wagered on a predictions market previously. I was curious about how it worked. I set up an account and bet $50 of my own funds that I would win the primary. 

!I was informed in March of 2026 that this was a violation of the platform rules. In compliance with their request, I paid a penalty and agreed to be suspended from the platform. That was the only wager I have ever made on a predictions market. This was a mistake, and I apologize.”

The second case involved Mark Moran. Kalshi alleged that “in November 2025, Moran was listed as a strike for the market ‘Who will run for public office this year?’” and that he “placed ten orders in this market on November 13 and 14, 2025.”

The notice said Moran later announced his candidacy for the Democratic primary for U.S. Senate in Virginia and was then added to another market, “Virginia Democratic Senate nominee?”

Kalshi further found that “on January 27, 2026, Moran placed two trades in this market and then promoted the market generally on social media.”

According to the company, Moran admitted the issue during a call. The notice states: “Moran acknowledged that these trades were improper and in violation of the Kalshi exchange rules.” It also said he later “repeatedly refused to resolve this matter via settlement and stopped responding to further correspondence.”

Kalshi imposed a five-year suspension and “a penalty of $6,229.30, plus disgorgement of any profits that resulted from the trading connected to this action.”

On X, Moran posted a video saying he intentionally placed a $100 wager to draw attention to the platform, and seemed to be less apologetic.

The third matter involved Ezekiel Enriquez. Kalshi said Enriquez “announced himself as a candidate for public office and was added as a market option for a contract on the Texas Republican primary election for Texas’s 21st Congressional District.”

The notice continued: “As a candidate, Enriquez qualified as a direct decision maker for the contract and had direct influence on the outcome of the Underlying event.”

Kalshi said the settlement established that Enriquez “purchased less than $100 worth of contracts related to his own candidacy, in violation of Rule 5.17(z).”

He received a five-year suspension and a $784.20 fine.

Increasing pressure on safeguards

All three actions cite the same rule. Kalshi Rule 5.17(z) states: “If a Trader is a decision maker, either directly or indirectly, or has any influence, directly or indirectly, no matter the scale and importance of the influence, on the outcome of the Underlying (event) of any Contract, that Trader is prohibited from attempting to enter into any trade, either directly or indirectly, on the market in such Contracts.”

Regulators and market skeptics have long questioned whether exchanges can detect conflicted traders quickly enough.

Featured image: Zeke4Texas on Instagram / Mark Moran via X / Dr. Matt Klein via X / Kalshi

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