How Many States Will Tell Kalshi To Leave?
Gambling news roundup: California sports betting progress, kind of sort of. Hawaii sports betting bill advances. Michigan targets more offshore casinos.
No podcast this week, I’m in San Diego at the Indian Gaming Tradeshow & Convention.
As soon as I publish my other newsletter, The Event Horizon, there is almost always news about prediction markets minutes or hours later. That works out well since I have this newsletter that publishes in the afternoon!
The newest: We now have a fourth state issuing a cease-and-desist to platforms offering sports betting via prediction markets: Illinois. The news was reported first by Casino Reports, I believe. You can see the cease-and-desist letter to Kalshi here. Similar letters were sent to Robinhood and Crypto.com.
More from the letter sent by the Illinois Gaming Board (emphasis theirs):
The IGB is aware that Kalshi is engaged in sports wagering activity in Illinois over the Internet and on mobile devices. The IGB has neither licensed nor authorized Kalshi to engage in sports wagering activity. Consequently, Kalshi's activity constitutes illegal gambling in violation of Illinois law. Accordingly, Kalshi and anyone affiliated with its operations are directed to cease and desist this illegal activity. Failure to comply may subject Kalshi to civil or criminal penalties.
Statement from Kalshi:
“Kalshi has always been a staunch supporter of regulation. We were the first prediction market registered with the CFTC, a path we chose to ensure strong consumer protections and market integrity.
However, by attempting to encroach on jurisdiction clearly granted to federal authorities, state regulators are taking dangerous actions that would undermine trillions of dollars of economic activity across gold, oil, agricultural futures, and more. They threaten to upend a framework that has safely and effectively governed commodities markets for decades, which would be disastrous for the American economy.”
I am not sure that the ability to offer sports betting “clearly” lies with the Commodity Futures Trading Commission, but I digress.
So just how many states do we think will end up telling Kalshi et al to leave by the end of the month? Privately, I set the line at 7.5 states earlier this week, and I already like the over. I think Michigan is a lock to act, so that would put us at five. We have other states that have hinted at action as well. Just three more to hit the over!
Get your bets in now at DGSportsbook* before I move the line to 8.5. I implore Kalshi to put up a market for how many states will send C&Ds so we can get to a source of truth.
This line of course assumes the CFTC doesn’t step in to bring some order to the chaos.
*For educational purposes only.
Also in prediction markets news:
Connecticut Sports Betting Regulators Investigating Kalshi as Contract Conflict Grows (Covers): “The gaming division of the Connecticut Department of Consumer Protection has opened an investigation into Kalshi, adding to the list of states that are taking a closer look at the federally regulated prediction market’s products. A spokesperson for the regulator told Covers the investigation began in the fall, but added they did not have an ETA for when a conclusion could be reached or information about what the result may be.”
That news is perhaps not surprising, given this intel from Connecticut in the fall: “We know elections sometimes feel like a sport, but the reality is they are not,” said DCP Commissioner Bryan T. Cafferelli. “Wagering on an unlicensed platform just to bet on an election leaves consumers personal information and money vulnerable to theft and fraud. Any platform offering wagers on the election is unregulated by the Department of Consumer Protection. No licensed platform may offer wagers on election outcomes in Connecticut.”
Gambling news roundup
Tribes, Commercial Entities Consider Similar Plan for Legal California Sports Betting (Casino Reports): “The Sports Betting Alliance on Tuesday unveiled a plan to bring legal sports betting to California, promising to pay for an initiative while allowing the state’s tribes to run it. Turns out, Indian Country is considering the same plan. There is still much that has to happen before an initiative is sent to California voters, but two years ago, such a conversation would have been unimaginable.”
As soon as this came out, some were dumping cold water on the idea. Progress for California sports betting is measured in baby steps. And this is at least a baby step. More here from Legal Sports Report.
House-Approved Hawaii Online Sports Betting Bill Heading to Senate Floor (Sports Betting Dime): “Hawaii sports betting hopes took a huge step this afternoon. The powerful Hawaii Senate Ways and Means Committee today approved HB 1308, a house-approved bill to legalize online sports betting, by an 11-2 vote. The bill now moves forward to the full Senate floor for a potential discussion and vote.”
Behind-the-scenes drafting of gambling bill continues, ‘trying to nail down Jello’ (Alabama Daily News): “The Alabama Senator drafting a lottery and gambling bill said he agreed Tuesday to change how potential state revenue would be spent in an effort to garner more support from his colleagues.”
Gaming Control Board issues cease-and-desist letters to Curaçao-based Lucky Tiger Casino, Rich Palms Casino for illegal gambling activities (Michigan Gaming Control Board): The Michigan Gaming Control Board (MGCB) has issued cease-and-desist letters to the offshore Lucky Tiger Casino and Rich Palms Casino for conducting illegal gambling activities in Michigan that violate the state’s gaming laws and regulations. ‘The Michigan Gaming Control Board will continue to make it clear that any operator found to be operating unlawfully will face appropriate consequences,’ MGCB Executive Director Henry Williams said. ‘This agency has zero tolerance for illegal gambling. We will continue to exercise our regulatory oversight and authority to protect the interests of Michigan citizens and licensed operators and ensure that all online gambling activities available here are compliant with the law.’
No prediction markets… yet.
Caesars Entertainment Debuts its First Live Dealer Studio Inside One of its Caesars Rewards Destinations (press release): “Caesars Entertainment, Inc. today announced the launch of its first branded, live dealer studio inside one of its world-class destinations made possible through its partnership with Evolution. The debut of the space inside Tropicana Atlantic City in New Jersey marks the second custom studio made for Caesars live dealer offerings on its online casino platforms following the launch of its first such studio in Pennsylvania earlier this year.”
ESPN Bet acquires rights to MLB player images via union deal (SBC Americas): “PENN Entertainment has secured a deal with MLB Players, Inc. to make its ESPN Bet and theScore Bet brands officially licensed sportsbooks of the MLBPA’s business arm. The non-exclusive licensing agreement, secured through MLBPA commercial partner OneTeam Partners, gives ESPN Bet and theScore Bet permission to use MLB player names, images, and likenesses on their wagering websites and apps. The deal provides PENN with rights to use names, images, and likenesses for marketing and retail operations.”
PlayUp Mintas suit dismissed, some of her countersuit moving ahead (SBC Americas): “The multi-year legal battle between Australian gaming company PlayUp and its former U.S. CEO Laila Mintas hit an important milestone when a Nevada District Court judge issued a ruling dismissing all of the initial complaint against Mintas. The ruling comes a week after a similar decision in the Australian courts over the same matter. … However, several of Mintas’s claims will be moving forward to trial, where Mintas will be eligible to seek damages.
Jackpot.com Partners with TelevisaUnivision to Expand Access to Lottery Services for Spanish-Speaking Audiences Across the U.S. (press release): “Jackpot.com, a leading online lottery courier service in the U.S., today announced a strategic partnership with TelevisaUnivision, the world's leading Spanish-language media company, to become the official lottery courier and provider of lottery results across TelevisaUnivision's platforms. Through this collaboration, Jackpot.com will offer secure and convenient online access to official state lottery games across the states in which it is active while delivering timely and accurate lottery results to the millions of Hispanic viewers TelevisaUnivision reaches across its expansive portfolio of broadcast, cable, audio, digital, and social platforms in the U.S.”
