Connecticut State Police arrested 100 people Friday after officers descended on a rural Tolland property that investigators say hosted a large-scale cockfighting and illegal gambling operation.

Troopers arrived at 55 Mountain Spring Road around 1:29 p.m. to carry out a search and seizure warrant tied to what police described as a long-running investigation. In a media release, the agency said detectives had been examining reports of “illegal gambling and cockfighting events being hosted inside this residence,” according to a state police media release.

By the end of the operation, investigators reported recovering roughly $90,000 in cash from the property. The Connecticut Department of Agriculture also located 273 birds at the site. State police said all 273 birds were euthanized “due [to] their deteriorated conditions.”

The operation drew a major law enforcement response to the otherwise quiet and wooded neighborhood Friday afternoon. Police alerts and social media posts indicated Mountain Spring Road was temporarily shut down between Tolland Stage Road and Elizabeth Lane while officers secured the area and processed evidence.

Charges filed against homeowners in Tolland amid gambling and cockfight probe

Among those arrested were the property owners, Elvin Miranda, 59, and Lisa Miranda, 66. According to police, both were taken into custody at the scene before being transported to Troop C for processing.

Authorities charged the pair with cruelty to animals, professional gambling, operating a gambling premise and risk of injury to a minor. Police said each later posted a $250,000 cash or surety bond before being released. They are expected to appear June 18 in Rockville Superior Court.

Dozens of other people arrested during the raid came from Connecticut and several neighboring states, according to records released by state police. Bond amounts for those defendants ranged from $10,000 to $500,000. Court dates are scheduled throughout June in Rockville Superior Court.

State police said the investigation relied on assistance from multiple specialized units. Those included the Emergency Services Unit Tactical Team, Aviation Unit, Drone Unit, K9 Unit, Eastern District Major Crime unit and Intelligence Operations Unit. Troop C personnel also supported the raid and subsequent arrests.

Several outside agencies also assisted during the operation, including the Massachusetts State Police Special Tactical Operations Team, the Connecticut Department of Correction, the Connecticut Department of Agriculture, the Tolland Fire Department and Tolland EMS. Prosecutors from the Office of the State’s Attorney for Rockville Superior Court also participated.

Authorities said the investigation has not been closed and additional investigative work is continuing.

“This operation sends a signal that if you engaged in staged animal fighting, you will jeopardize your freedom,” said Wayne Pacelle, president of Animal Wellness Action.

“Even in an isolated quarry far from public view, law enforcement tracked this criminal enterprise, dismantled it, and rescued hundreds of animals from horrific abuse.”

Featured image: CTPOLICELIVE via Facebook

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A fresh industry report says unregulated online gambling has become one of the world’s largest hidden digital economies, with global wagering volume reaching an estimated $5.9 trillion during 2025.

Gaming Compliance International’s latest study, Online Gaming 2025: Global, found the market expanded from $5.1 trillion in 2023 to $5.7 trillion in 2024 before climbing another 4% this year. Researchers said unregulated operators now account for 78% of worldwide online gambling gross gaming revenue, while licensed operators make up the remaining 22%.

The company classifies unregulated gambling as offshore sports betting, casino gaming, poker, crypto wagering, and lottery products that continue targeting customers in jurisdictions where they lack legal approval.

“Unregulated online gambling is the world’s third-largest ‘economy’ after the USA and China,” the report stated, while also describing the sector as “the biggest form of cybercrime in the world.”

Growing concerns around global unregulated gambling

GCI said many consumers now struggle to tell legal operators from illegal ones because online gambling platforms, gambling-style entertainment products, and loosely regulated services increasingly appear together across streaming platforms, social media, and mobile apps. The report refers to this environment as a “White Noise Marketplace.”

Alongside traditional black-market sportsbooks and casinos, researchers pointed to the rise of “unacknowledged” gambling products. These include social casinos, prediction markets, sweepstakes sites, skins trading services, and TikTok contests that mirror gambling behavior without always fitting existing legal definitions.

The findings build on several recent studies tracking the growth of illegal wagering. A major UK study previously estimated that roughly £4.3 billion is staked annually through black-market gambling channels. In the United States, the American Gaming Association has also warned that illegal gambling now represents a substantial portion of total wagering activity.

GCI said illegal sports streaming continues driving traffic toward offshore gambling operators. The report claimed more than 80% of illegal sports streams viewed in the US and UK during 2024 and 2025 carried advertising connected to unregulated betting companies. Separate reporting on UK streaming activity found black-market gambling promotions appeared across nearly all major illegal sports broadcasts online.

Researchers also tied expected growth in 2026 to major sporting events including the Super Bowl, March Madness, and the FIFA World Cup, alongside continued regulatory loopholes and the expansion of crypto gambling products.

The report argues that regulators can no longer focus exclusively on licensed operators if they want an accurate understanding of online gambling markets.

“There is only one marketplace in a jurisdiction,” the report states. “Unfortunately, it features two industries: one regulated, one unregulated.”

GCI is now pushing for monitoring systems that track advertising, affiliates, payments, social platforms, streaming services, apps, and peer-to-peer communication channels used by gambling operators.

Featured image: Canva

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A proposed securities class action is targeting Sportradar Group AG after a shareholder accused the sports betting technology company of misleading investors about its compliance controls and connections to illegal gambling operators.

Investor James Anthony Smale filed the lawsuit May 18 in federal court in Manhattan. The case seeks to represent people who purchased Sportradar Class A shares between November 7, 2024, and April 21, 2026. The complaint names the company along with Chief Executive Officer Carsten Koerl and Chief Financial Officer Craig Felenstein.

Sportradar supplies betting data, odds services, fraud detection tools and audiovisual content to sportsbooks and sports leagues worldwide. The company works with organizations and operators including the NBA, MLB, NHL, PGA Tour, FIFA, DraftKings, FanDuel and Bet365. Its shares trade on the Nasdaq under the symbol SRAD.

According to the complaint, Sportradar repeatedly assured investors that the company followed strict legal and regulatory standards when onboarding sportsbook customers. The suit says executives stressed detailed “Know-Your-Customer” screening procedures meant to verify operators were properly licensed.

The filing states comments Koerl made during a November 2025 earnings call, when he described a “four-level process” to confirm the company “only work[s] with licensed operators.” Koerl also said Sportradar had “a global compliance team, which is making an intensive KYC with every operator.”

The complaint also points to an April 2025 CNBC interview where Koerl compared the company’s integrity division to “the SEC or the FBI” for the gambling industry.

Sportradar illegal gambling reports triggered stock decline

The lawsuit says investors learned damaging information on April 22, 2026, after Muddy Waters Research and Callisto Research released reports alleging that Sportradar maintained extensive relationships with operators active in black and gray gambling markets.

According to the complaint, Muddy Waters alleged Sportradar “has actively aided and abetted illegal gambling across the world’s black and grey markets – not as an accident or an oversight, but as a business strategy.” Investigators posing as sportsbook operators reportedly spoke with Sportradar sales staff during a gaming conference and were allegedly told the company “serves everyone.”

The report also described introductions to operators connected to illegal Asian gambling markets, including the Yabo Group, which the complaint characterizes as a well-known illegal betting operation in China.

Callisto Research separately claimed that more than 270 gambling platforms using Sportradar products or services were operating illegally in regulated or prohibited jurisdictions. The report further alleged that regulators in North America and Europe had started reviewing the company’s activities.

Sportradar denied the allegations after the reports were published, calling the claims inaccurate and defending its compliance practices. The company also disputed assertions that it knowingly worked with illegal operators.

Shares of Sportradar dropped 22.6% on April 22, falling from $16.84 to $13.04 after the reports became public, according to the lawsuit. The complaint alleges the company and its executives violated federal securities laws by making misleading statements and concealing the extent of alleged dealings with unlawful betting operators.

ReadWrite has reached out to Sportradar for comment.

Featured image: Sportradar

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Evoke has handed Bally’s Intralot more time to decide whether it will move ahead with a formal takeover offer for the betting and gaming company as negotiations between the two sides continue.

The companies said discussions are still active around a possible acquisition covering all issued and expected share capital in evoke. The approach, first disclosed on April 20, valued the business at 50 pence a share and would likely be structured as an all-share deal with a partial cash alternative attached.

The extension gives Bally’s Intralot until 5 p.m. London time on June 8, 2026, to either announce a firm intention to make an offer or walk away from the process. Evoke said the deadline could still be pushed back again if its board agrees.

Evoke sets new deadline for Bally’s Intralot 

Bally’s Intralot has already said that any formal proposal would still depend on standard regulatory approvals and customary conditions. The group also kept the option to revise major terms of any bid, including pricing, structure, and the balance between cash and shares.

Evoke stressed there is still no guarantee that a formal offer will eventually emerge.

The talks arrive during a turbulent period for evoke and the wider UK gambling sector. Earlier this year, the company launched a strategic review examining options that reportedly included a potential sale, a breakup of business divisions, or other restructuring measures after tax increases announced in the UK budget added pressure across the industry.

At the same time, the company has been reshaping operations around major brands including William Hill and 888. William Hill recently confirmed plans to close roughly one in ten betting shops across the UK during 2026 as retail gambling operators continue adjusting to higher operating costs and changing customer habits.

Despite those challenges, evoke recently reported what executives described as its strongest trading quarter in years. Chief executive Per Widerström pointed to improved online performance and stronger customer activity, although he also criticized tax increases introduced by the UK government and warned they could damage long-term growth for regulated operators.

The latest takeover discussions also follow Bally’s completion of its merger with Intralot in a transaction valued at roughly $3 billion. This expanded Bally’s international gaming footprint and strengthened its technology and lottery operations, giving the company greater scale as it pursues further expansion opportunities.

Evoke said Morgan Stanley and Rothschild & Co are advising the company during the discussions. The business also reminded shareholders that UK takeover rules do not formally apply because evoke is incorporated in Gibraltar, meaning any future bid would not fall under the authority of the UK Takeover Panel.

Featured image: evoke Plc / Bally’s Intralot

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Kalshi said Monday (May 18) it will spend $2 million over the next two years on a partnership with the National Council on Problem Gambling, becoming the first prediction market company to formally join the organization as concerns grow around responsible consumer behavior in fast-growing trading markets.

The agreement also creates a new “Financial Services & Trading” membership category inside the National Council on Problem Gambling, known as NCPG. Kalshi will join as a platinum-level member, according to statements released by both groups.

The partnership is built around a new initiative focused on trader health and safety. Both organizations said the program will fund education campaigns, research projects, and consumer resources designed to help users recognize risky financial behavior across retail trading platforms.

Kalshi runs a federally regulated prediction market exchange where users trade contracts tied to real-world events, including elections, sports, entertainment, and economic indicators. The company has consistently argued its platform should be viewed as a financial exchange rather than a sportsbook or casino.

Even so, prediction markets are drawing increasing attention from lawmakers and regulators who question whether some products resemble gambling. That debate has intensified as sports betting and retail trading platforms continue expanding across the United States.

Our previous coverage noted that critics increasingly compare prediction markets to gambling because users can profit from event outcomes in ways that mirror sports wagering. Kalshi, meanwhile, has continued expanding deeper into sports-related contracts while defending its business as federally regulated financial trading.

Kalshi focuses on responsible gambling amid concerns

The company has also tightened internal rules in recent months. ReadWrite reported that Kalshi restricted certain trading activity involving politicians, athletes, and other individuals who could potentially possess insider information tied to market-moving events. The company has simultaneously expanded its sports operations and recently added a key executive hire as it pushes further into sports-based prediction products.

“NCPG’s goal has always been to mitigate harm by increasing education, awareness, and understanding of risky behaviors, while ensuring access to trusted, scientific, and evidence-based information and healthcare resources,” said Heather L. Maurer, Executive Director of NCPG. “Innovation and responsibility can and must evolve together. Kalshi’s engagement demonstrates a commitment to mitigating harm before it occurs and ensuring support resources are accessible when they are needed.”

Kalshi said its platform already includes trading breaks, self-limits, self-exclusion tools, and mental health resources for users. The company also said it does not take positions against customers because prices are driven by market activity.

“At Kalshi, we believe in the power of prediction markets, and we are sensitive to the fact that they, like any financial trading products, come with risks,” said Tarek Mansour, co-founder and CEO of Kalshi. “As prediction markets continue to evolve, we are deeply committed to setting a new standard for responsible trading by investing in the tools, education, and protections needed to promote healthy participation and customer safety and hope that over time all trading platforms with significant retail participation follow suit.”

Both organizations said Kalshi’s funding will support consumer education campaigns focused on problematic trading behavior. NCPG added that it remains neutral regarding the legality of gambling, wagering, and prediction market products.

Featured image: Kalshi / Canva

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Sens. Katie Britt and Richard Blumenthal rolled out bipartisan legislation Monday (May 18) aimed at stopping online platforms from directing sports betting advertisements toward minors. The proposal, called the Gaming Advertisement to Minors Enforcement Act, or GAME Act, would apply to social media companies and digital advertising networks that promote sportsbooks and prediction markets.

Lawmakers from both parties have been pushing for tighter federal oversight of the online gambling industry. Recent congressional efforts have included renewed attention on the SAFE Bet Act, a separate proposal that would add consumer protections, advertising restrictions, and affordability checks for sports bettors.

The legislation would apply to major digital platforms with more than 100 million monthly users, including social media companies, search engines, and online advertising networks. The bill also specifically bans gambling ads targeted through behavioral profiling, device tracking, personal data, or precise geolocation information tied to minors, while still allowing broader contextual advertising not based on user-specific data.

Bipartisan bill to put pressure on gambling companies over sports betting ads targeting minors

Britt said lawmakers are increasingly worried about how often young users encounter gambling promotions online.

“The rise in sports gambling among minors, particularly among young boys, is jarring,” said Senator Britt in a press release. “We know targeted advertising from gambling and prediction market websites can serve as the gateway to dangerous habits that too often become crippling addictions. Our legislation takes a critical step toward addressing this problem before it worsens.

Our next generation is our greatest asset, and it’s our responsibility to take the necessary steps to protect them from online dangers whenever we can—which is exactly what this bill does.”

Blumenthal argued that gambling operators are aggressively pursuing younger audiences through digital advertising campaigns and mobile platforms.

“Sportsbooks and prediction markets are treating young people like a gold rush, flooding the internet with advertisements and promotions to hook them on gambling when they’re young,” said Senator Blumenthal. “High schoolers, even middle schoolers, are now gambling on their phones as never before, losing real money and creating life-altering addiction. The GAME Act would create a nationwide ban on targeted advertising of gambling to kids, backed with the force of punishing fines.”

Under the proposal, the Federal Trade Commission would oversee enforcement. The rules would become active one year after the bill becomes law. Companies violating the restrictions could face civil penalties and court-ordered injunctions. Repeat offenders could also face Justice Department action, including fines reaching $100,000 for every gambling advertisement shown to a minor.

The legislation builds on Britt’s earlier bipartisan efforts focused on youth gambling and illegal offshore betting operations. In late 2025, she joined lawmakers urging the Department of Justice to crack down on unauthorized offshore gaming sites that critics say remain accessible to underage users. Earlier this year, she also pressed the Centers for Disease Control and Prevention to expand research into youth sports gambling trends and addiction risks.

Research cited by the senators says people who start gambling before turning 18 are significantly more likely to develop gambling problems later in life.

Featured image: SenKatieBritt via X / SenBlumenthal via X

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Betano is heading back to soccer’s biggest stage after FIFA confirmed a new sponsorship agreement tied to the 2026 World Cup across Europe and South America.

FIFA announced Monday (May 18) that Betano, the flagship online sports betting brand owned by Kaizen Gaming, will serve as an Official Tournament Supporter for the expanded competition. Matches will take place across Canada, Mexico and the United States from June 11 through July 19, 2026.

The upcoming tournament will mark the first World Cup featuring 48 national teams, making it the largest edition in the event’s history. FIFA expects record global audiences and major commercial activity around the competition.

Betano extends global soccer ambitions with FIFA World Cup partnership

The latest agreement builds on a relationship that started before the 2022 World Cup in Qatar, when Betano became FIFA’s first sports betting sponsor through a regional partnership covering Europe. The company later added another major soccer property after becoming an Official Partner of the FIFA Club World Cup 2025.

“We are delighted to welcome Betano among the Tournament Supporters of the FIFA World Cup 2026,” said FIFA’s Chief Business Officer, Romy Gai, in a press release originally shared with ReadWrite.

“Since we first partnered with Betano four years ago, we have seen a genuine commitment to sporting integrity, bringing fans closer to our game and finding new, engaging ways to entertain them. We share these objectives and are glad to have this powerhouse by our side as we look forward to uniting the world through football once again in North America and beyond,” he stated.

Kaizen Gaming has been expanding aggressively across international soccer in recent years. Earlier this year, Betano also entered a three-year partnership with German powerhouse Bayern Munich, adding another high-profile club relationship to its growing sports portfolio.

“Partnering with FIFA for the third time is a proud milestone for everyone at Kaizen Gaming and a clear reflection of our global evolution,” added George Daskalakis, co-founder and CEO of Kaizen Gaming.

“The FIFA World Cup 2026 is the ultimate intersection of sport and entertainment, reaching billions of people. For us, it is the perfect stage to solidify Betano as the most trusted brand globally for responsible online sports betting. Our focus now is to deliver a thrilling, innovative and secure experience for fans throughout the tournament.”

The betting industry is already preparing for heavy activity around the 2026 event. A recent World Cup study found many viewers are expected to place sports wagers for the first time during the tournament, especially through mobile platforms and live betting products.

FIFA has also been strengthening its broader betting and data ecosystem ahead of kickoff. The organization recently signed a deal naming Stats Perform as the official betting rights distributor for the 2026 competition, helping expand access to official match data worldwide.

Betano said fans will have access to responsible gaming tools, including spending controls, time-management features and around-the-clock customer support throughout the tournament buildup and competition.

Featured image: Betano / FIFA

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A legal fight over prediction markets and state gambling authority is now on hold in Arizona while federal appeals judges weigh several related cases.

Kalshi, the Commodity Futures Trading Commission, the Justice Department, and Arizona regulators jointly asked a federal judge Friday (May 15) to pause litigation involving sports-event contracts offered on federally regulated exchanges. The request was filed in the U.S. District Court for the District of Arizona and asks Judge Michael T. Liburdi to freeze proceedings until the Ninth Circuit rules in at least one pending appeal tied to prediction-market platforms.

The filing says “questions that bear directly on this case are pending before the Ninth Circuit.”

The Arizona case involves Kalshi and North American Derivatives Exchange, which operates as Crypto.com. They are suing Arizona Attorney General Kristin K. Mayes and Arizona Department of Gaming Director Jackie Johnson over whether the state can enforce gambling laws against contracts listed on CFTC-regulated exchanges.

Arizona Ninth Circuit appeals could reshape Kalshi and prediction market oversight

The latest filing follows a May 5 ruling in which Liburdi granted a preliminary injunction favoring the United States and the CFTC. It temporarily blocked Arizona from taking enforcement action against certain event contracts while the case proceeds. The same day, the judge directed both sides to explain whether the litigation should be paused.

The parties pointed to three Ninth Circuit appeals they believe could directly influence the Arizona case: North American Derivatives Exchange, Inc. v. State of Nevada, KalshiEX, LLC v. Assad, and Robinhood Derivatives, LLC v. Dreitzer. According to the filing, those appeals “were consolidated for argument held April 16, 2026.”

Another closely watched matter, Blue Lake Rancheria v. Kalshi, Inc., is scheduled for oral arguments in July before a different appellate panel.

Recent federal rulings have increasingly favored prediction-market operators. Earlier this month, a federal appeals court sided with Kalshi in separate disputes involving New Jersey and Arizona, reinforcing arguments that federal commodities law may preempt some state gambling restrictions. The Justice Department and the CFTC have also backed lawsuits challenging state enforcement efforts, arguing that federally approved event contracts fall under federal oversight instead of state gaming regulation.

In Friday’s filing, the parties argued that a stay would promote “economy of time and effort for [the Court], for counsel, and for litigants.” They also said that “the orderly course of justice” would be served while appellate courts sort through overlapping legal questions.

Arizona officials maintained that the injunction is causing “severe, ongoing injury” because it prevents the state from enforcing gambling laws and blocks authorities from “engaging in any subpoena process or other compulsory investigative process related to event contracts listed on CFTC-regulated designated contract markets.”

Kalshi disagreed, arguing Arizona “suffer[s] no cognizable injury from an injunction barring the enforcement of preempted state laws.”

Featured image: Kalshi / Canva

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DraftKings co-founder Matt Kalish spent part of Sunday (May 17) attacking prediction-market operator Kalshi, arguing that sports exchanges still fall far short of the experience most bettors expect from traditional sportsbooks.

In a lengthy series of social media posts, Kalish pushed back against growing excitement around exchange-style betting products. He said the technology and usability behind prediction markets remain years behind regulated sportsbook apps that already dominate the US market.

“There’s not a single exchange product experience for normal people that is remotely close to the delivering the caliber of experience that regulated sportsbooks do,” Kalish wrote. “They are 2-3 years of development away.”

Kalish said the current audience for sports prediction markets is made up mostly of highly experienced traders, professional bettors, and financial-market participants rather than ordinary fans placing recreational wagers.

DraftKings among sportsbooks feeling the heat of Kalshi and other prediction markets

“It’s currently an extremely niche product where only the 1% know what the hell is going on,” Kalish posted, adding that the conversation is dominated by “professional gamblers,” “professional market makers,” and employees or investors tied to exchanges and derivatives products.

He directed much of his criticism toward Kalshi, which has expanded aggressively into sports-focused prediction products while increasing its public marketing push.

“Yet there is one company that is intent to scream from the mountaintops like they have some hot s*** in sports today and that is Kalshi,” he wrote. “Driven by ego and pressure from raising billions, now push crazy comms while booking 1/500th the risk of DK/FD.”

Kalish also argued that inexperienced users entering prediction markets are often at a disadvantage against sophisticated trading firms.

“Normal ppl on Kalshi have no clue the ‘micro mechanics of prediction markets’ … getting orders snap dumped to pro market makers from Wall Street at 40% the value then condescended by the exchange for being noob.”

The comments arrive during a wider industry debate over whether prediction markets could eventually compete with sportsbooks. We reported that DraftKings’ own interest in launching market-making operations tied to prediction markets, even as state regulators intensify scrutiny. Nevada regulators recently moved against prediction-market activity involving major gambling operators, while Bank of America analysts downgraded both DraftKings and Flutter amid concerns that prediction markets could disrupt traditional betting businesses.

Kalish insisted most everyday sports bettors still find exchange products difficult to understand.

“I haven’t heard the 99% of normal mass market sports gamblers who play for fun say they think exchanges are fun or say much other than express confusion,” he posted. “Because the product isn’t there yet.”

He added that heavy promotion is masking weak mainstream demand.

“When Kalshi stops feeding them all what will be left without a real product is the 1% of professional gamblers, professional Wall Street market makers, and those trying to pump their bags.”

Despite the criticism, Kalish acknowledged the argument may sound self-interested coming from a sportsbook executive.

“Please god everyone put your megaphones the f*** away and build a real mainstream appeal product,” he wrote.

Featured image: Digital Social Hour Podcast by Sean Kelly via YouTube / Canva

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The NCAA says former Abilene Christian basketball player Airion Simmons broke the association’s gambling rules after investigators determined he shared confidential team information with bettors and agreed to influence his play during a 2024 game against Tarleton State.

The ruling, released Friday (May 15) by the Division I Committee on Infractions, centered on a March 20, 2024, matchup between Abilene Christian University and Tarleton State University. NCAA officials said Simmons accepted $3,500 after agreeing to “play[ing] bad” during the game as part of a betting scheme tied to outside gamblers.

According to the negotiated resolution, the case surfaced after another former Abilene Christian player disclosed details while attending a Division II school in September 2025. The player told coaches and NCAA officials that Simmons and another teammate discussed “a way to get paid to lose the game” while they were playing video games before the Tarleton State matchup.

Investigators were also told about a FaceTime call involving Simmons, another teammate and a gambler identified in NCAA records as “Known Bettor 1.” During that conversation, the bettor allegedly directed the players to lose the game so wagers placed on the contest would pay out.

NCAA faces scrutiny around sports betting in college athletics amid Abilene Christian case

When NCAA enforcement staff later questioned Simmons, he admitted communicating with another gambler before the game. Simmons said “Known Bettor 2” contacted him through direct messages and later offered money in exchange for affecting the outcome of the contest. Investigators said Simmons also revealed information about his injured hand and disclosed that another teammate would not play.

The NCAA said Simmons appeared in only 11 minutes before leaving because of the hand injury. He later acknowledged meeting someone in a Dallas outlet mall parking lot to collect cash connected to the arrangement. Investigators said Simmons admitted keeping the full payment instead of sharing it with teammates.

Federal prosecutors later filed criminal charges tied to the case. The NCAA said Simmons and two known bettors were indicted January 14, 2026, by the U.S. Attorney’s Office for the Eastern District of Pennsylvania on charges including bribery in sports wagering contests, wire fraud and conspiracy to commit wire fraud.

The association classified Simmons’ conduct as a Level I violation, the NCAA’s most serious category involving ethical conduct and sportsmanship rules. Officials said his actions violated policies designed to protect competitive integrity.

Simmons is no longer part of Abilene Christian’s men’s basketball program and is not currently participating in NCAA athletics.

The case arrives as college athletics faces mounting concerns over gambling-related misconduct. We reported on a wider NCAA point-shaving investigation involving multiple athletes and separate cases where six student-athletes were expelled after allegedly manipulating bets. Another recent NCAA study drew attention to growing harassment and abuse directed at players by angry sports bettors online.

Simmons declined to participate in the negotiated resolution process, though the Committee on Infractions approved the agreement and finalized the penalties on Friday.

Featured image: NCAA / Abilene Christian via ACU Sports website

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Researchers at the University of Sheffield are helping lead what officials describe as the country’s biggest independent effort yet to better understand gambling harm and reduce its impact across Britain.

The new Gambling Harms Research UK Evidence Centre brings together academics from Sheffield, Glasgow, Swansea and King’s College London. Funding comes through the government’s statutory Gambling Levy and is backed by UK Research and Innovation as ministers continue rolling out reforms from the Gambling White Paper.

Researchers involved in the program say the goal is to give policymakers, health services and charities stronger evidence about which interventions genuinely reduce harm and where support services are falling short. The work will also involve economists, public health specialists, advocacy groups and people with direct experience of gambling-related problems.

According to the University of Sheffield, gambling harm is estimated to cost the UK around £1.4 billion ($1.9 billion) every year through pressure on healthcare services, criminal justice systems and wider social impacts including debt, depression, relationship breakdown and suicide.

Professor John Holmes, Professor of Alcohol Policy at the University of Sheffield and Director of the Sheffield Addictions Research Group, said: “Gambling harms can have devastating consequences for people’s mental health, relationships, finances and, in the most serious cases, leading to loss of life. Yet for too long, there have been major gaps in the evidence available to policymakers, health services and charities working to reduce that harm.”

“This new centre is a hugely important step forward. By bringing together leading researchers, people with lived experience and organisations working on the frontline, we have a real opportunity to strengthen understanding of gambling-related harms and identify the actions that can make the biggest difference to people’s lives.”

New UK gambling harms research center expands into wider public health concerns

Alongside the national center, Sheffield researchers are also leading two related partnerships focused on prevention and treatment. One project, known as G-PULSE, plans to build computer models measuring how gambling policies could affect behaviour, public health outcomes, economic costs and inequality across Great Britain.

Professor Squires said: “I’m looking forward to designing a four-year research programme to develop new gambling prevention policy computer modelling for Great Britain which will assess the impact of gambling prevention policies on behaviour, health, costs and fairness between different groups of people to help inform future policy.”

Another partnership led by Professor Matt Field and Dr. Jen Brown will examine treatment, support and recovery services for people experiencing gambling harm.

The push comes as British authorities also increase pressure on illegal gambling operators through a new national enforcement taskforce and wider public health initiatives. Gambling-related harm has additionally become part of discussions around England’s first men’s health strategy and new Ministry of Defence policies designed to reduce gambling risks among military veterans and serving personnel.

Featured image: Canva

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Ontario residents can now block themselves from every regulated online gambling platform in the province through a single self-exclusion system launched Thursday (May 14).

The new service, called BetGuard, is available to people aged 19 and older and covers all provincially regulated operators, including the Ontario Lottery and Gaming Corporation’s online products. Instead of visiting multiple gambling sites separately, users can complete the process through one standalone portal.

According to iGaming Ontario, anyone who signs up through BetGuard will lose access to existing gambling accounts, be prevented from opening new accounts, and stop receiving direct marketing from regulated operators for the length of their exclusion period.

The province says the system is part of a broader effort to strengthen consumer protections as Ontario’s online gambling market continues growing.

“BetGuard is designed with one simple principle in mind: if you need take a break from the entire regulated igaming market, you can,” said iGaming Ontario President and Chief Executive Officer Joseph Hillier. “Player choice is key to the sustainability of our market, and that includes the choice to opt out.”

Users can choose exclusion periods lasting six months, one year, five years, or a customized timeframe.

Responsible gambling efforts continue expanding in Ontario as self-exclusion system launches

Ontario’s Alcohol and Gaming Commission first introduced new standards requiring a centralized self-exclusion system last year, laying the groundwork for BetGuard’s rollout across the regulated market. Officials say the province worked with operators, regulators, and responsible gambling specialists while building the platform.

Internationally, Britain’s Gamstop program recently passed 500,000 registered users. Meanwhile, Denmark’s ROFUS system has also become one of Europe’s most established national self-exclusion registries, allowing users to temporarily or permanently block gambling access.

Ontario officials say regulated markets are better equipped to offer those protections than unlicensed gambling sites operating outside provincial oversight.

“The Ontario government is committed to responsible gambling,” said Stan Cho, Ontario’s Minister of Tourism, Culture and Gaming. “As online gaming continues to grow in popularity, the launch of BetGuard is an important step forward in helping people play safely and responsibly across more than 75 regulated sites.”

Industry organizations and addiction support groups also welcomed the launch, describing centralized exclusion systems as one of the strongest available harm-reduction measures.

“Centralized self-exclusion is one of the most effective tools we have in gambling harm prevention,” said Sarah McCarthy, chief executive officer of the Responsible Gambling Council. “BetGuard’s launch is a meaningful step forward for Ontario and reflects the kind of cross-sector collaboration that makes regulated markets work for players and communities.”

“As Ontario’s 24/7 helpline for mental health and addictions, ConnexOntario sees every day how important timely support options are,” said Executive Director Nerin Kaur. “BetGuard adds a valuable new resource for anyone 19+ who wants to step back from regulated online gambling.”

Ontario’s regulated online gaming market generated $262 million in revenue during the 2024-25 fiscal year. The provincial government says it has invested more than $421 million since 2018 into gambling education, research, awareness campaigns, and responsible gaming initiatives.

Featured image: Canva

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Oklahoma lawmakers have finalized a major expansion of the state’s gambling restrictions after voting to override Gov. Kevin Stitt’s veto of Senate Bill 1589. The measure updates Oklahoma’s criminal gambling statute to specifically address online casino-style games, sweepstakes operations, and the companies that help support them.

The Senate approved the bill in March, and the House passed it earlier this month before it reached the governor’s desk. Legislative records attached to the enrolled bill show Stitt vetoed the proposal on May 7. Both chambers voted on May 14 to override that veto and move the measure to the Secretary of State.

The revised law changes Section 941 of Oklahoma’s criminal code by expanding definitions tied to prohibited gambling activity. Lawmakers added language directly targeting internet-based casino games and online sweepstakes products that have become increasingly common across the United States.

Under the legislation, “online casino games” are defined as gambling games that allow a person to access the internet “by way of a computer, computer system, computer network, computer software, computer terminal, or similar device including, but not limited to, a cellular or mobile telephone, a smart or electronic watch, or a tablet” to simulate gambling games or other forms of gambling.

Oklahoma among states continue tightening sweepstakes gambling restrictions

The measure also widens the definition of a “representative of value.” According to the bill, the term includes “any and all currency used as part of a dual-currency system of payment that allows a person to exchange such currency for any prize, award, cash, or cash equivalent.”

Lawmakers also expanded potential criminal liability beyond operators running gambling platforms themselves. The amended statute states that any person who “either as owner or employee, geolocation provider, gaming supplier, platform provider, promoter, or media affiliate” provides support for prohibited gambling activity may face criminal penalties.

Oklahoma’s action comes as more states move against online sweepstakes casinos. Montana became the first U.S. state last year to formally ban online sweepstakes casinos after lawmakers approved legislation aimed at dual-currency gaming systems and internet casino-style platforms. Maine lawmakers also passed legislation targeting sweepstakes casinos, adding to a growing national push for tighter oversight of those businesses.

The Oklahoma law still preserves exemptions for gaming activities allowed under the Oklahoma Charity Games Act and gambling conducted on tribal lands under the federal Indian Gaming Regulatory Act.

Violations remain classified as a Class C2 felony offense. A conviction can bring fines ranging from $500 to $2,000 along with imprisonment under Oklahoma sentencing guidelines.

The bill was authored by Sen. Gollihare and Reps. Hilbert and Fetgatter. Legislative records show the Senate voted 34-10 to override the veto, while the House voted 68-19. The law is scheduled to take effect November 1, 2026.

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Wisconsin Gov. Tony Evers signed an executive order Thursday (May 14) blocking state employees from using confidential government information to make money through prediction markets and online betting platforms. The order is aimed at tightening ethics rules as wagering markets tied to politics, sports, and government activity continue growing across the country.

Executive Order 294 applies to executive branch workers and bars them from using nonpublic information obtained through state jobs to personally profit, avoid losses, or help others financially benefit through prediction markets or related betting activity.

“State workers in Wisconsin work hard every day in dedicated service of the people of our state, often going above and beyond their job description and daily responsibilities to support Wisconsinites and our communities and meet their needs,” Evers said in a statement.

“Maintaining public trust and confidence in our state government demands and depends upon transparency, accountability, and integrity, and upholding the fundamental tenet of public service that, above all, the work must be for the benefit of the public good and not for personal greed or gain. That is a commitment we take seriously, and we must continue to do so.”

Evers signs Wisconsin insider trading order amid scrutiny around prediction markets

The governor’s office said Wisconsin already enforces broad ethics standards for public employees, but officials believe prediction markets require more direct rules because those platforms increasingly allow users to place wagers on elections, legislation, economic decisions, sports outcomes, and international events.

The order states employees cannot use confidential government information “to personally profit from, avoid loss from, or assist another person or entity, including spouses and family members, in profiting or avoiding loss from participation in prediction markets.”

State officials said there have been no known incidents involving Wisconsin employees improperly using insider information. Still, the administration pointed to a recent federal case involving a U.S. Special Forces soldier accused of using classified information tied to a military operation involving former Venezuelan President Nicolás Maduro to earn more than $400,000 on a prediction platform.

Wisconsin has also become a major battleground over prediction market regulation. Last month, state regulators sued prediction market companies over allegations they were operating illegal sports betting systems without authorization under Wisconsin law. Federal regulators later escalated the dispute when the Commodity Futures Trading Commission sued Wisconsin officials, arguing the state was improperly attempting to regulate federally approved event contracts.

Separate litigation involving Kalshi and the Ho-Chunk Nation added another layer to the conflict after a federal judge considered whether tribal gaming interests could challenge prediction market operations connected to sports-related contracts.

Evers’ administration said Illinois, New York, Maryland, and California have adopted similar restrictions tied to insider information and prediction markets. The U.S. Senate also recently approved a rule prohibiting senators from trading on those platforms.

Under the Wisconsin order, employees who violate the policy could face termination, ethics referrals, disciplinary action, or possible law enforcement investigation.

Featured image: Defense Visual Information Distribution Service

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The British government has laid out how a new Illegal Gambling Taskforce will operate as ministers step up pressure on unlicensed betting businesses targeting UK customers.

Officials said the group will bring together regulators, payment companies, technology platforms, law enforcement agencies, trade bodies and gambling industry representatives. It will focus on disrupting financial transactions connected to illegal operators, limiting online advertising tied to unlicensed gambling, and improving coordination between organizations already involved in enforcement work.

“The taskforce aims to identify solutions to the issues identified by the taskforce and its sub-groups in relation to the facilitation and promotion of illegal gambling, particularly online,” the government said in the published terms of reference.

The taskforce will be jointly led by the Minister for Museums, Heritage and Gambling and the Department for Culture, Media and Sport’s director of sport and gambling. While industry figures and companies will participate, the government said their identities will remain private.

“Names of specific organisations and individuals that are members will not be published,” the document states. 

Officials plan to run the initiative for an initial 12 months before reviewing its structure and membership. Full meetings are expected at least twice annually, while smaller working groups handling specific issues could meet more frequently throughout the year.

Illegal gambling taskforce launched amid growing concern over black market activity

The government made clear the taskforce will coordinate information sharing rather than directly enforce gambling law. According to the framework, the group will not “direct or intervene in operational matters performed by the Gambling Commission.”

The announcement arrives as ministers and regulators increase scrutiny of black market gambling operations. Earlier this year, the government confirmed plans for a consultation on preventing unlicensed gambling companies from sponsoring British sports teams, including Premier League clubs.

Recent Gambling Commission activity has also drawn attention to growing concern around illegal betting websites. The regulator recently introduced a new reporting tool intended to help consumers flag suspicious gambling platforms more quickly, part of broader enforcement efforts targeting offshore operators.

The commission’s 2026-27 business plan said referrals of illegal gambling web addresses to search engines climbed sharply during 2025 as investigators intensified disruption work. Concerns have also spread beyond gambling sites themselves. Research shown in recent industry reporting found that nearly all illegal sports streaming websites viewed in the UK carried black market gambling advertising, exposing viewers to unlicensed operators.

At the same time, licensed betting companies continue warning that tougher regulation and higher taxes could drive customers toward unregulated alternatives. The Betting and Gaming Council recently claimed that 28% of bettors could consider illegal gambling websites if taxes on licensed operators rise further.

The government said the taskforce is expected to support cross-sector working between public and private organizations to improve disruption efforts and strengthen information sharing.

“The taskforce will bring together a range of stakeholders including gambling bodies and law enforcement to tackle illegal gambling,” the guidance said, adding that participants would work together to improve “cross-agency collaboration and enforcement work regarding illegal remote and land-based gambling.”

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Missouri authorities say they confiscated 35 illegal gambling machines and nearly $60,000 during a coordinated enforcement operation that stretched across four counties and targeted five separate businesses.

Attorney General Catherine Hanaway announced the raids alongside the Missouri State Highway Patrol and local law enforcement agencies. Investigators carried out searches in Boone, Dallas, Jefferson and Miller counties, leading to criminal cases connected to alleged illegal gaming activity.

Officials said authorities recovered $58,815 that investigators believe came from unlawful gambling operations. Prosecutors later filed 21 felony counts of first-degree promoting gambling tied to four businesses and five misdemeanor counts of second-degree promoting gambling connected to another location. Authorities stressed that the allegations have not been proven in court and that all defendants are presumed innocent.

“The era of Missouri’s illegal gaming industry hiding behind a so-called ‘gray market’ is over,” Hanaway said in a press release. “Illegal gaming has formed nuisance centers across our state, and this billion-dollar industry has put paved the way for violent and organized crime.  We are proud to have partnered with local law enforcement in a sting operation that marks the start of our next phase of enforcement. My office remains committed to dismantling illegal gaming manufacturers, distributors, and retail stores that continue to defy law enforcement.”

Missouri State Highway Patrol Colonel Michael A. Turner said the operation reflected cooperation between state and local agencies.

“This sting operation reflects our shared commitment with the Attorney General’s Office and local law enforcement partners to enforce the law, hold violators accountable and protect lawful business practices throughout Missouri,” Turner said.

Authorities outline businesses targeted during coordinated Missouri illegal gambling raids

According to investigators, Eagle Stop North Providence in Columbia was found with four gaming devices and $16,973 in cash. At Woody’s Pub and Grub in Ashland, officers seized six machines and $8,072.

Authorities said Buffalo Eagle Stop in Dallas County contained eight illegal gaming devices along with $15,638. In Lake Ozark, investigators recovered four devices and $15,985 from Bagnell Eagle Stop.

At Tenbrook Station Lounge in Arnold, authorities said they discovered seven illegal gambling devices and seized $2,147. Investigators added that more money inside a payment kiosk remained inaccessible until specialized drilling tools could be used.

Court records show prosecutors filed one felony count for each alleged slot machine tied to several locations. Charges were filed against Jenna A. Gier in Dallas County, Keith Allen Winscott in Boone County and Anthony Gier in Miller County. Prosecutors also charged Tonia Lynn Twardowski in Jefferson County with five misdemeanor gambling counts.

Hanaway’s office also said it plans to pursue civil forfeiture proceedings for all money seized during the raids under Missouri’s Criminal Activity Forfeiture Act. State law allows law enforcement agencies to confiscate property tied to criminal activity, including funds allegedly derived from illegal gambling operations.

The crackdown follows a statewide effort targeting gaming machines operating outside Missouri’s regulated casino industry. Hanaway’s office has recently warned businesses and distributors that so-called gray market machines could face increased enforcement actions, while several operators have already suspended or scaled back machine operations amid growing legal pressure from state officials.

Featured image: Attorney General Catherine L. Hanaway via Flickr / CC BY-SA 4.0

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Dana White is pushing President Donald Trump to revisit a gambling tax provision tucked inside the recently passed “One Big Beautiful Bill Act,” adding another high-profile voice to a growing bipartisan campaign in Washington.

In a May 11, 2026 letter to the White House, the UFC president thanked Trump for supporting the sweeping legislation before turning to a tax change now facing heavy criticism from the gaming industry and several members of Congress. The provision limits gambling loss deductions to 90%, replacing the longstanding rule that allowed bettors to fully deduct losses against winnings.

“I write today to raise an issue we have discussed in the past: the need to reverse the 90 percent limit on gaming loss deductions for US taxpayers included in the OBBBA,” White wrote.

The tax change was scheduled to take effect for the 2026 tax year and has become one of the most disputed sections of the spending package. Industry groups and lawmakers argue the rule could leave some gamblers paying taxes despite finishing the year with net losses.

UFC CEO Dana White adds to gambling tax pressure mounting in Congress against Trump bill

White warned that the current structure could discourage legal wagering and weaken the regulated sports betting market that states have spent years building after the fall of the federal sports betting ban.

“The current law makes it irrational to bet in the United States because you could end up owing taxes even when you lose or having a tax bill that exceeds your winnings for the year,” the letter states.

He also tied the issue directly to the business side of professional sports and entertainment, where legal sportsbooks have become major advertising and sponsorship partners.

“Beyond that, the change has knock-on effects for businesses like mine,” White wrote. “When legal betting is discouraged, it hurts the ecosystem we’ve spent years building in partnership with state regulators and licensed operators.”

Nevada lawmakers quickly lined up behind the effort. Senator Catherine Cortez Masto said she introduced bipartisan legislation aimed at restoring the full deduction and described the current policy as “nonsense.” 

Representative Dina Titus thanked White publicly for adding pressure on the administration, while Representative Steven Horsford again promoted his proposed “FULL HOUSE Act” as the clearest legislative fix.

The debate has already surfaced repeatedly in Congress. Earlier attempts to reverse the deduction cap stalled during negotiations surrounding the larger budget bill, but supporters say pressure has intensified as casinos, sportsbooks, and tax experts warn about unintended consequences.

The American Gaming Association also backed White’s intervention, saying the industry fears bettors could migrate toward offshore platforms that operate outside U.S. regulation and taxation.

White closed the letter by presenting the issue as both an economic and political test for the administration.

“Fixing this deduction issue would send a strong signal that the United States supports common-sense regulation,” he wrote. “You’ve always stood up for fighters, fans, and American businesses. This is another opportunity to do exactly that.”

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Florida gaming regulators and local investigators say a large illegal gambling operation in Manatee County has been dismantled after a coordinated raid that seized hundreds of machines and more than $120,000 in cash.

The Florida Gaming Control Commission worked alongside the Manatee County Sheriff’s Office and Homeland Security Investigations during the effort, which authorities called “Operation Silent Spin.” Officials announced Tuesday (May 12) that investigators confiscated 265 illegal gambling machines while also filing criminal charges and immigration detainers connected to the case.

Spin City Arcade accounted for the largest seizure. Investigators removed 155 illegal slot machines and recovered about $78,483 in cash from that location, according to the commission. Authorities also seized 61 illegal slot machines and roughly $24,157 from another arcade that was not publicly identified. At Mike’s Arcade, officers recovered 49 illegal slot machines and approximately $18,157.

State regulators say the operation reflects growing concerns about underground gambling businesses spreading across Florida. Investigators pointed to a recent armed robbery and shooting at another illegal gambling house in Manatee County where a customer was shot multiple times. Officials say those operations often involve large amounts of cash, weak security, narcotics activity, trafficking concerns, and schemes targeting customers.

“These illegal gambling businesses are not harmless storefront operations. They attract crime, generate illicit cash economies, and create serious public safety risks for surrounding communities,” said L. Carl Herold, Director of Gaming Enforcement for the FGCC.

Pressure builds for wider enforcement amid Manatee County illegal gambling raid

The Manatee County case follows several other recent gambling crackdowns across southwest Florida. Earlier enforcement actions that we previously reported included the seizure of 623 illegal gambling machines and another Lee County operation where investigators removed 134 illegal slot machines tied to arcade-style gambling businesses. Separate investigations in Lee County also focused on suspected illegal gambling arcades operating under storefront gaming models.

Officials say the cases are adding pressure on state lawmakers to approve more enforcement funding as budget negotiations continue in Tallahassee this week. The FGCC is requesting additional gaming enforcement squads, including a proposed unit dedicated to southwest Florida, where regulators say illegal gambling activity has surged.

“Operation Silent Spin sends a clear message: if you are operating illegal gambling in Florida, we are coming for your machines, your money, and your criminal enterprise,” Herold said. “As illegal gambling activity continues to grow statewide, including in southwest Florida, the FGCC remains committed to aggressively dismantling these operations before they evolve into larger organized criminal networks.”

Julie Brown, chair of the FGCC, said southwest Florida remains one of the agency’s top priorities as illegal gambling complaints continue increasing.

“Southwest Florida has seen one of the highest increases in illegal gambling activity in the state and is a prime location for our next enforcement squad,” Brown said. “As these operations continue to spread, the Commission must ensure it has the personnel and regional presence necessary to investigate complaints quickly, support local law enforcement partners, and protect Florida communities through sustained enforcement efforts.”

Featured image: Manatee County Sheriff’s Office via YouTube

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Four New Mexico tribes are taking prediction market company Kalshi to federal court, arguing that its sports contracts amount to illegal online sports betting conducted on tribal lands without approval from tribal regulators.

The Mescalero Apache Tribe, Pueblo of Isleta, Pueblo of Pojoaque, and Pueblo of Sandia filed the lawsuit Tuesday (May 12) in federal court in New Mexico. The 33-page complaint, reviewed by ReadWrite, seeks court orders blocking Kalshi from offering sports event contracts on tribal lands, while three of the tribes are also pursuing civil penalties.

Tribal regulators say Kalshi’s mobile app lets users place wagers on sporting events through yes-or-no contracts that operate like standard sportsbook bets. The tribes argue the products qualify as Class III gaming under the Indian Gaming Regulatory Act, known as IGRA, and therefore require tribal authorization and compliance with existing tribal-state gaming compacts.

The document cites a 2016 Interior Department letter stating that “non-tribal Internet gaming” would conflict with the exclusivity promised to tribes under those compacts.

The complaint says Kalshi never obtained tribal licenses and allows wagering by users as young as 18, even though tribal gaming agreements in New Mexico prohibit Class III gaming for anyone under 21.

New Mexico tribes join growing legal fight against Kalshi

The filing describes Kalshi’s offerings as nearly indistinguishable from traditional sportsbooks, pointing to bets involving game winners, point spreads, totals, parlays, and proposition wagers. One example cited in the complaint involved contracts tied to a University of New Mexico Lobos versus New Mexico State Aggies game.

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

The tribes also pointed to Kalshi’s earlier court arguments against the Commodity Futures Trading Commission, when the company reportedly argued that sports-related contracts resembled prohibited gaming activity. According to the filing, Kalshi shifted course after the 2024 election and began including sports contracts tied to the NFL, NBA, NHL, and NCAA beginning in January 2025.

The lawsuit references recent court rulings in Nevada and elsewhere that treated Kalshi’s products as sports gambling. The complaint quotes a federal judge who wrote, “As Justice Potter Stewart famously said about pornography in his concurrence in Jacobellis v. State of Ohio, ‘I know it when I see it.’ These are sports wagers and everyone who sees them knows it,” the Nevada court wrote, according to the filing.

The New Mexico case arrives as tribal governments continue challenging prediction market platforms. The Ho-Chunk Nation previously sued Kalshi in Wisconsin, and California tribes recently lost an appeals court effort seeking intervention in related litigation. Tribal leaders have increasingly argued that prediction markets threaten tribal gaming exclusivity agreements and undermine sovereignty protections negotiated with states.

The complaint also says Kalshi promoted itself through advertising and trademark filings describing its services as “bookmaking services” and “sports betting and gambling tournaments.” According to the tribes, geofencing technology already used throughout the gaming industry could easily block wagering activity on tribal lands.

The tribes claim Kalshi’s daily transaction volume rose from just over $4 million in December 2024 to roughly $800 million daily after sports betting contracts were introduced. It also cites reports valuing the company at about $22 billion following a recent funding round.

The tribes argue Kalshi’s continued operations bypass tribal safeguards involving fraud prevention, integrity monitoring, money laundering controls, and problem gambling protections.

Featured image: Kalshi / Canva

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The Commodity Futures Trading Commission (CFTC) is pressing a federal appeals court to reaffirm that prediction markets fall under federal supervision instead of state gambling enforcement.

In a brief filed Tuesday (May 12) with the U.S. Court of Appeals for the Sixth Circuit, the agency asked judges to overturn an Ohio ruling tied to Kalshi’s ongoing dispute with state regulators. The filing argues that Congress already gave the CFTC sole authority over futures, swaps, and similar financial products traded on federally regulated exchanges.

The case has become one of the highest-profile clashes between state gambling laws and the prediction markets industry. Ohio officials previously moved against Kalshi’s sports-related event contracts, arguing the products violate state gambling restrictions. Kalshi responded by challenging the state’s authority in federal court.

“The federal district court in Ohio took an improperly narrow view of the Commission’s jurisdiction, and we are asking the Court of Appeals to correct that error,” said CFTC Chairman Michael S. Selig in a press release. “As I’ve said repeatedly, the CFTC will not allow overzealous state governments to undermine the agency’s longstanding authority over these markets.”

CFTC clashes against state regulators over Kalshi and other prediction markets

The commission told the appeals court that Congress established the agency in 1974 specifically to avoid fragmented state oversight of commodities trading. According to the document, lawmakers concluded that inconsistent state laws had weakened national markets and created confusion for exchanges and traders.

The CFTC argued that event contracts have operated under federal oversight for decades. The filing noted that exchanges regulated by the commission have listed contracts tied to “regional insured property losses, the count of bankruptcies, temperature volatilities, corporate mergers, and corporate credit events.”

According to the filing, “States cannot invade the CFTC’s exclusive jurisdiction by re-characterizing swaps trading on DCMs as illegal gambling.” 

In Arizona, regulators also attempted to pursue gambling-related enforcement against Kalshi before a federal judge temporarily blocked that effort earlier this month. The court signaled that federally regulated prediction markets may fall outside direct state gambling control while broader legal questions continue moving through the courts.

The CFTC and the Department of Justice have additionally backed other legal challenges involving state attempts to restrict sports-based prediction contracts. The recent brief warned that state-by-state oversight could subject exchanges to “varying and potentially contradictory legal standards.”

The agency warned that if states succeed in blocking sports event contracts, regulators could eventually challenge other event-based derivatives already traded under federal oversight. The commission also stressed that federal law already gives it authority to decide whether specific contracts violate the public interest, including products connected to gaming concerns.

Featured image: CFTC / Canva

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