Each Wednesday, I provide commentary in short-form audio on a topic in the US gambling industry.
Where will prediction markets draw the line when it comes to offering event contracts on sports and beyond? What if I told you there may be almost no line at all? That’s the topic of today’s mini podcast from TCL.
For example, Kalshi currently offers contracts on what most would say is nonsense meant only for gambling/speculation, like who will attend Hulk Hogan’s funeral (see above).
Trusted Voices: Conversations About Betting is designed to equip adults, including parents and coaches, with tools and resources to talk to young people about gambling, including information on warning signs, risks and proxy betting. The program is led by retired professional basketball player Randy Livingston and his wife, basketball agent Anita Smith, who share their personal stories related to problem gambling, with the hope of preventing others from experiencing similar harms. Learn more and join the conversation here.
Gambling news roundup
Analysts Tweak Caesars Targets Following Strong Quarter For Digital (Legal Sports Report): “Digital was the star of the second quarter for Caesars, which missed consensus estimates for its Las Vegas and regional gaming segments. Analysts had a mixed reaction to Tuesday‘s results, which included a soft second quarter in Las Vegas and should be followed by a slow third quarter as well.”
“Jonas asked for an update on the possibility of spinning the Digital segment off into its own publicly traded company. Caesars CEO Tom Reeg noted the segment is well on its way to hitting the $500 million or more in annual Digital EBITDA and any plans for a spinoff will have to wait until that runrate is hit.
“… we’ll take a look at what we think of value at that point, whether we’re getting it reflected, but we would absolutely pursue a separation if we believe that it would drive significant value to our shareholders, and we think we’ll be in position where we’re at our targets at some point in the first half of ’26,” Reeg said.
Pressers from Caesars here; more from that:
Caesars Digital Adjusted EBITDA of $80 million versus $40 million for the comparable prior-year period.
Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc., commented, “Our Caesars Digital segment posted one of its strongest quarters ever, as momentum continues to build toward the financial goals that we originally laid out in 2021.”
Former NBA Star, Suspected Israeli Crime Figure Arrested on Federal Indictment Alleging High-Stakes Illegal Poker Games at Encino Mansion (Department of Justice): “Former NBA star Gilbert Arenas and five other defendants – including a suspected high-level member of an Israeli transnational organized crime group – were arrested today on a federal indictment alleging they operated an illegal gambling business in which high-stakes poker games were played at an Encino mansion Arenas owned. Arenas, 43, a.k.a. ‘Agent Zero,’ of Woodland Hills, is charged with one count of conspiracy to operate an illegal gambling business, one count of operating an illegal gambling business, and one count of making false statements to federal investigators. He is scheduled to make his initial appearance and be arraigned this afternoon in United States District Court in downtown Los Angeles.”
Of note: Arenas currently has a podcast under the umbrella of daily fantasy sports and and sports betting operator Underdog.
The latest on the delay on a CFTC nominee: So my newsletter over the weekend about a freedom of information request to the Commodity Futures Trading Commission has created some amount of consternation in DC, it seems, from multiple people I have spoken with and some reporting out in the world. That newsletter points out some potential conflicts of interest for nominee Brian Quintenz that could have arisen from emails I obtained.
More from a crypto newsletter on Quintenz (and my “little known blog”…I will try not to take offense; the newsletter citation in italics): There’s growing speculation in DC about why the White House abruptly requested a delay in Monday’s vote to advance Brian Quintenz’s nomination for chair of the CFTC. Some point to pressure from the American Gaming Association, the leading trade organization representing the U.S. casino industry, which sees Quintenz’s support for prediction markets as a potential threat to traditional gambling interests. Others cite unease from certain crypto industry players who fear he may not back their priorities.”
“But another theory centers on a blog post now circulating on the Hill and in crypto lobby circles. Published Saturday by a little known blog called The Closing Line, the post outlines what its author, Dustin Gouker — a gambling industry consultant, according to his LinkedIn — frames as potential conflicts of interest for Quintenz.
The post cites emails obtained through a FOIA request showing Quintenz’s slated chief of staff requesting access to confidential CFTC matters as part of a transition plan for Quintenz’s expected chairmanship.
Kalshi, a CFTC-regulated prediction market where Quintenz sits on the board (he has said he’ll step down if confirmed), is mentioned in the post alongside competitors like PredictIt and Polymarket — with the author raising questions about whether the outreach crossed any ethical lines.
Crypto In America has not been able to verify the authenticity of the FOIA emails and there’s no clear evidence the post led to the delay, but its timing — just 48 hours before the scheduled vote — has raised eyebrows among supporters of Quintenz.
Some are now asking what prompted the unusually targeted FOIA request behind the blog — and whether someone with inside knowledge of the emails may have tipped the author off.
“The CFTC controls when those documents get released, and it’s interesting it was immediately before the vote,” one industry source told Crypto In America.
Here’s what I can say about all of that. I did the FOI request on the emails. The emails came back very quickly. It’s hard to deny that’s out of the ordinary. I’d also argue it’s a red herring — either the emails are interesting and problematic or they’re not. If they are in the public interest and legal to be released, they deserve to be out in the world, full stop. We need more transparency around what goes on in government, not less.
I did my best to report the news objectively in that newsletter and explain why the emails could be problematic. I think there’s no question it was newsworthy.
I am also happy to give the emails to anyone in the media who wants them… I have sent them to at least two reporters already. You know where to find me.
Shohei Ohtani Interpreter Gambling Scandal Scripted Series Nears Starz Deal (Variety): “The series about Shohei Ohtani and the gambling scandal surrounding his interpreter could soon be headed to Starz. Variety has learned from sources that the premium cabler is nearing a deal for the series, though it has not closed at this time. The project was first reported to be in the works at Lionsgate Television in May 2024. According to sources, Alex Convery will serve as the writer. Scott Delman and Albert Chen are both attached to produce. Max Elins is overseeing for Lionsgate TV.”
New Jersey lawmaker seeks to ban ‘impulsive’ in-play prop bets (SBC Americas): “A New Jersey politician is pushing a bill that would make all in-play proposition sports bets illegal in the Garden State. Rep. Dan Hutchison’s Bill A5971 would amend the state’s sports betting laws to prohibit licensed online sportsbooks from offering what it terms ‘micro bets.’ The language of the bill, viewed by SBC Americas, defines a ‘micro bet’ as any proposition bet wagered live while a sports event is ongoing and which concerns the outcome of the next play or action. It defines a prop wager as a ‘side wager’ which does not concern the final outcome of the event.”
“The bill cites the outcome of the next pitch in a baseball game or the next play in a football game as examples of the type of bet that it would ban.”
DraftKings and MLB close to settlement in player images case (Next.io): “Major League Baseball Players Inc. (MLBPI) and the sports betting operator have moved closer to resolving their legal dispute over unauthorised use of player images, with both parties jointly requesting the stay to facilitate settlement discussions, which the court has approved. In a letter filed on 24 July with the US District Court for the Eastern District of Pennsylvania, the companies revealed they had been ‘actively exchanging and negotiating settlement terms’ and believed they were ‘close to reaching a resolution.’”
Sportradar Launches AI-Driven “Bettor Sense” to Support Responsible Gambling (press release): “Sportradar Group AG (NASDAQ: SRAD) has launched Bettor Sense, a personalized, proactive, and data-driven approach to user protection. BETesporte will be the first operator to implement the solution, reinforcing its commitment to safer and more responsible practices in Brazil’s newly regulated betting market.”
“Bettor Sense is an AI-powered solution that detects early signs of gambling-related risk and enables personalized interventions to protect end users. Developed with proprietary technology and grounded in behavioral research, Bettor Sense allows operators to act quickly and efficiently, promoting responsible gambling and strengthening brand reputation. Fully compliant with regulatory standards, Bettor Sense provides a critical tool for operators aiming to meet rising expectations around end user protection.”
“In addition to implementing Bettor Sense, BETesporte has also joined Sportradar’s Integrity Exchange, a global information-sharing network that enables betting operators to report suspicious betting activity directly to Sportradar’s Integrity Services division. This collaboration strengthens the industry’s collective ability to fight match-fixing and betting-related corruption through enhanced transparency and cooperation.”
Tom Mace – SVP, Integrity & Regulatory Services, Product & Strategy at Sportradar, said: “This partnership with BETesporte marks an important milestone for Sportradar’s ongoing mission to help shape secure and sustainable sports betting and iGaming industries. BETesporte is taking a proactive step in embracing responsible gaming as a core part of its business. We are confident this will be the first of many partnerships, as the market increasingly recognizes the value of using data and technology to protect end users and strengthen compliance.”
WONDR NATION Partners with Sparket to Launch a New Pop Culture Prediction Contest (press release): “WONDR NATION, the online gaming and entertainment company owned by the Mashantucket Pequot Tribal Nation, today announced a strategic partnership with Sparket, an innovative startup in social gaming technology. Through this initiative, WONDR NATION will launch several products under the iWondr brand, beginning with an immersive free-to-play pop culture-themed prediction contest. Fusing technology, entertainment, and gaming, the inaugural pop culture prediction contest invites users to forecast and weigh in on trending moments, ranging from the top-grossing box office movies to music and television. Unlike traditional betting platforms, iWondr contests are built on Sparket's proprietary Social Betwork® technology, which combines prediction contests and community.”
"This partnership allows us to bring a completely new, culturally relevant experience to audiences who may not typically participate in traditional gaming," said Anika Howard, CEO of WONDR NATION. "At WONDR NATION, we're committed to innovation that blends culture, technology, and community, and iWondr is a great example of that vision coming to life."
Through WONDR NATION's continued partnership with Sparket, additional product rollouts and themed contests are planned for the iWondr engagement tool for select events and activations, allowing for real-time interaction among attendees and spectators. From entertainment news to viral trends, iWondr is designed to evolve with cultural moments, engaging with users through the topics they care about.
"We created Sparket to make social gaming a more interactive experience," said Aaron Basch, CEO and Co-Founder of Sparket. "WONDR NATION's vision and commitment to audience-first innovation make them the perfect partner to roll out a new form of play that's engaging and culturally in tune."
DC Council approves budget that ends gambling losses recovery suit (SBC Americas): “The DC Council and Mayor Muriel Bowser have apparently foiled an attempted lawsuit to recover hundreds of millions of dollar lost by DC residents who gambled. The district’s city council approved a nearly $22 billion budget on Monday for FY2026.”
Sports Betting’s First Contest Docuseries Returns for a Second Season with More Contestants, More Drama, and $14.2M on the Line (press release): “VSiN, The Sports Betting Network, announces that it will air the second season of the betting industry’s first docuseries to bring viewers behind the scenes of the world’s biggest legal betting contest. ‘Circa Survivor: The Quest for $14.2 Million’ debuts its first episode Tuesday, August 5 at 9 p.m. ET/6 p.m. PT on VSiN.com and YouTubeTV. A preview of this original series and full show schedule are available here.”
“Produced by Longball Productions, the high-stakes sports betting docuseries follows contestants as they navigate their way through the 2024 Circa Sports Circa Survivor Pro Football Contest, the largest sports contest in the world, with a prize of $14.2 million. “Circa Survivor: The Quest for $14.2 Million” captures the excitement and drama of this high-stakes contest, as well as the characters involved, to see who will win a life-changing, winner-take-all prize. This year highlights familiar faces and new contestants alike, including celebrity sightings like Dana White, CEO of the Ultimate Fighting Championship and former Major League Baseball pitcher, Greg Maddux.”
Virginia’s problem gambling committee takes lessons from other states (WVTF): “An advisory committee aiming to help Virginia handle gambling addiction is taking lessons from other states as the Commonwealth rapidly embraces the once-taboo practice.”
“These people were not prepared,” University of Memphis gambling researcher James Whelan said, describing the results of a secret shopper survey of several Tennessee casinos he was presenting to Virginia’s Problem Gambling Treatment & Support Advisory Committee Tuesday morning.”
Closing Line Consulting
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