The Current: Kalshi CEO Says Company Is In 'Brutal, Bloody War' With Gambling Interests
Tarek Mansour also teases expansion of sports betting. Gambling news roundup: San Diego State launches the Institute on Sports Wagering and Gaming; Bet365 strikes deal with WNBA's Indiana Fever.
The Current is a weekly report on a new development in the gambling industry from The Closing Line.
Kalshi CEO Tarek Mansour had a lot to say after closing a new funding round and a big first half of 2025, including a claim that the prediction market is in a “brutal, bloody war” for its very existence.
Mansour took to both Twitter and LinkedIn at the end of last week to talk about the growth and future of Kalshi. There were lots of interesting nuggets in those social media posts, but how he is classifying its legal challenges is perhaps the most interesting:
“The legal fight.
We are in a brutal, bloody war. The stake of that war: the right of prediction markets to exist.
Today, Kalshi is fighting:
100 tribes
34 states
Dozens of self-interested gambling advocacy groups
Countless genius ‘Linkedin lawyers’
Predatory private companies bringing claims based on 300-year-old British laws
Our impact on sports speak for themselves: users are seeing drastically better results on Kalshi than on traditional sportsbooks.”
Let’s unpack this, which is of course quite a bit of hyperbole on numerous fronts:
Is it “brutal” and “bloody?” Not really. These are just lawsuits. There’s nothing terribly nefarious about any of it. And I am sure Kalshi knew it would be getting legal blowback when it launched sports betting.
“The stake of that war: the right of prediction markets to exist.” This is perhaps the most exaggerated part of the statement. No one is saying prediction markets have no right to exist. Interests are just trying to stop sports betting via prediction markets. (Nevada takes issue with election betting too.) But if Kalshi had never ventured into sports, I find it hard to believe anyone would be challenging it. Kalshi could have had the sandbox to do everything else in prediction markets unfettered. If Kalshi stopped doing sports betting tomorrow (or were forced to), they would still exist. Of course, sports betting is far more lucrative and drives more trading than everything Kalshi offers outside of presidential election cycles.
“100 tribes.” The number is actually in the hundreds if we include ...tribes that the overarching groups represent.
“Dozens of self-interested gambling advocacy groups.” I have a hard time coming up with dozens that are fighting Kalshi. There’s the American Gaming Association and a few others that I have seen, including the resort associations in Nevada and New Jersey. But dozens is a stretch.
“Countless genius ‘Linkedin lawyers.’” I haven’t seen more than a handful of attorneys who post about Kalshi’s legal battles. Even if I haven’t seen them all, the number is certainly countable.
“Predatory private companies bringing claims based on 300-year-old British laws.” No argument here.
Playing the victim and turning it into the little guy vs. the establishment clearly has played well for Kalshi to date. “Cheers to the underdogs,” Mansour wrote on Twitter. Meanwhile, Kalshi is also arguably “the establishment.” It has Donald Trump Jr. as an advisor and one of its board members ready to take over the Commodity Futures Trading Commission, the group that regulates Kalshi.
I rate the whole statement a 5 out of 10 on my “Source of Truthiness Scale” (TM).
What else did Mansour say of interest? Here are the highlights that I saw:
FanDuel’s 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.
Teasing a further iteration of sports betting. “Today, we mostly cover single games. What’s next? Let’s just say…stay tuned.” Is that parlays, prop bets, points spreads, something else entirely, or all of it?
Plans to “upgrade our politics experience. We are cooking something 🔥.”
“Up next: Expanding live experience to more categories, better crypto on/off ramps, social features, new developer platform, wallet support and more modalities.”
“Our broker pipeline has exploded: Kalshi has close to 20 brokers in the pipeline today.”
“We launched our second out of home campaign across Oklahoma, NYC, California, and Texas…”
Notably three of those four states don’t have legal online sports betting.
Before the main roundup, my weekly trading volume report for Kalshi:
Gambling news roundup
San Diego State University Launches the Institute on Sports Wagering and Gaming (press release): “San Diego State University proudly announces the official launch of the Institute on Sports Wagering and Gaming (ISWAG), a new research and education hub focused on the dynamic and rapidly evolving sports betting industry. Housed within SDSU’s L. Robert Payne School of Hospitality and Tourism Management, ISWAG will serve as a national leader in applied research, policy analysis, and academic-industry collaboration at the intersection of the sports and gaming industries.”
“The Institute on Sports Wagering and Gaming positions SDSU as an academic leader in one of the most important and fast-growing sectors in sports and entertainment,” said Dr. Brandon Mastromartino, Assistant Professor and Founding Director of the Institute. “Our goal is to provide timely, evidence based insights that inform industry best practices, responsible gaming strategies, and public policy conversations—all while creating new educational pathways for students and professionals.”
“The Institute will focus on three primary pillars:
Research: Interdisciplinary studies on sports betting behavior, regulation, policy, responsible marketing, and player protection.
Industry Engagement: Partnerships with operators, leagues, tribes, and regulators to provide strategic insight and applied solutions.
Education: Certificate programs, student research opportunities, and executive education offerings to build capacity across the sector.”
For more information, visit the Institute for Sports Wagering and Gaming or contact Dr. Mastromartino at bmastromartino@sdsu.edu.
Indiana Fever Ink Partnership with bet365 as Team's ‘Official Sportsbook Partner’ for 2025 Season (press release): “The Indiana Fever announced today that one of the world’s leading online betting companies, bet365, is joining the team as its Official Sportsbook Partner for the 2025 season. bet365 will step into the game with a lineup of fan-focused features that will be integrated across the Fever’s media and game day experience.”
“We’re excited to team up with bet365 and bring fans a premium mobile sports betting experience,” said Fever Chief Operating Officer and General Manager Amber Cox. “This partnership is all about creating more ways for fans to connect with our team from tipoff through to the final buzzer.”
As part of the partnership, bet365 will have a strong presence throughout the Fever season, including having a brand presence across Fever Radio Network broadcasts, team social content and the Fever mobile app.
“Exciting, record-breaking, and hungry for more, the Indiana Fever certainly embodies the Never Ordinary spirit, and we are incredibly enthusiastic about this partnership,” said a bet365 spokesperson. “With the new season underway, it’s the perfect time for us to share our unrivalled bet365 experience with Fever fans.”
It’s the second partnership with a WNBA team for 365 in the past month after a similar deal with the Chicago Sky.
Big Beautiful Bill Sports Betting Fears ‘Overblown,’ Says Analyst (Casino.org): “President Trump’s One Big Beautiful Bill Act (OBBBA) contains a controversial amendment that would subject bettors to taxes on their losses, and while that provision has been derided in the wagering community, it has more implications for bettors than gaming companies. In a new report to clients, Citizens equity research analyst Jordan Bender acknowledges that the One Big Beautiful Bill’s betting tax has ‘the potential to push players out of the legal market,’ possibly weighing on total addressable market (TAM) in the process, but he adds fears of the legislation destroying the regulated sports betting industry are ‘overblown.’”
Lawmakers fight gambling tax hike (Punchbowl): “There’s already a campaign to reverse one of the One Big Beautiful Bill Act’s tax hikes, just days after it became law. Rep. Dina Titus (D-Nev.) introduced a bill Monday to restore bigger tax deductions for gamblers. The legislation is gathering backers and already has bipartisan support. … Rep. Steven Horsford, a fellow Nevada Democrat, is also expected to join Titus’ bill.”
Punchbowl covers Congress pretty granularly, but it’s a good sign they are covering this as more than a bullet point in a larger story.
Republican Backs Push to Repeal Part of Trump Bill Days After Voting For It (Newsweek): “Representative Troy Nehls, a Texas Republican, told Newsweek why he is cosponsoring a bill to repeal a measure included in President Donald Trump's One Big Beautiful Bill Act (OBBBA).”
"While I proudly voted for the One Big Beautiful Bill Act, which prevents the largest tax hike in American history, the Senate's version contained a provision that I strongly disagree with," Nehls told Newsweek in a statement.
It looks like testing and certification firm Gaming Laboratories International has been sold to CVC Capital… per Chris Grove on Twitter and a document here.
Tribes Say A New SCOTUS Decision Strengthens Argument In NJ-Kalshi Case (InGame): “A new U.S. Supreme Court (SCOTUS) decision gives further weight to an amicus brief filed in the Kalshi vs. New Jersey case now before the Third Circuit, according to a letter to the court from the Tribal Amici July 1. The Tribal Amicus — a coalition of 65-plus tribes and tribal entities across the U.S. — says that the June 27 SCOTUS decision in Federal Communications Commission v. Consumers’ Research strengthens the arguments that the Commodity Futures Trading Commission (CFTC) does not have the right allow Kalshi to self-certify event contracts.”
California Sweepstakes Casino Ban Bill Takes First Steps (Legal Sports Report): “Lawmakers advanced AB 831, which bans sweepstakes casinos, past the Senate Governmental Organization committee on Tuesday. While the bill advanced, there were questions about the path the legislation has taken. After an unrelated bill passed the Assembly in early May, the Senate inserted the sweepstakes ban language last month. The California legislative session runs until Sept. 12, but bills can carry over to the 2026 session. The next hearing is scheduled for July 15 in the Senate Public Safety Committee.”
SGLA Calls for Rejection of California AB831 During Senate Hearing (press release): “During today’s California Senate Governmental Organization Committee hearing on AB831, the Social Gaming Leadership Alliance (SGLA) urged lawmakers to reject the bill and protect access to legitimate, free-to-play digital entertainment enjoyed by millions of Californians. AB831 would ban online social games that offer legal “freemium plus sweepstakes” options, even though the bill’s most vocal backers operate similar games of their own. Furthermore, SGLA partners’ games maintain comprehensive consumer safeguards, including:
Strict age verification using robust identity and geolocation technology and processes to prevent access to games and platforms by minors.
Comprehensive security protocols including anti-money laundering (AML) procedures and ‘Know Your Customer’ (KYC) frameworks.
Responsible gameplay tools including spending limits, self-exclusion options and one-click access to responsible gaming resources.
Financial protections through partnerships with major payment networks that require the same security standards as major retailers.”
“This bill isn’t about protecting players. It is about protecting incumbents from competition,” said Jeff Duncan, Executive Director of SGLA and former Congressman. “It would override longstanding legal precedents affirming the legitimacy of sweepstakes promotional models that are used across industries including food, retail, entertainment, and political campaigns.”
The Social and Promotional Games Association wrote a letter to Assemblymember Avelino Valencia about the proposed bill to ban sweepstakes casinos. An excerpt:
“On behalf of the members of the Social and Promotional Games Association (SPGA), we respectfully oppose the recent gut and amend of AB 831, which first went into print on June 24th.
Summary: AB 831 Is Too Vague, Too Rushed, and Too Risky
AB 831 seeks to outlaw an entire category of digital promotions and entertainment, which have existed and operated legally for many years, using language so broad that its full impact is impossible to predict. The bill was amended at the last minute, without stakeholder input, without supporting data, and without clear evidence of harm.
Before California creates new crimes, restricts speech, and disrupts legitimate businesses, the Legislature should take a more thoughtful and transparent approach and make this a 2-year bill. Disrupting an entire legal industry in less than two months without adequate debate, education, public outreach, and evidence supporting the proponent’s arguments seems extremely short- sighted and irresponsible.”California Has Declared Daily Fantasy Sports Are Illegal. Now What? (Front Office Sports): “The California attorney general said last week that daily fantasy sports are considered illegal sports betting under state law. But rather than ending the debate, the ruling may spark a broader conversation among Native American tribes, sportsbook operators, and regulators about how to handle the issue moving forward.”
The New Normal: Closing the Loopholes in California: Tribal-Led Efforts to Rein in Fantasy Sports and Sweepstakes Sites (Webinar, Wednesday at 1 pm Eastern): “California’s tribal governments are drawing a firm line in the sand as unregulated daily fantasy sports and dual-currency sweepstakes casinos continue to operate in legal gray zones. In this episode, we break down Attorney General Rob Bonta’s new opinion declaring DFS illegal under state law and examine Assembly Bill 831, a proposal backed by tribes to shut down online sweepstakes gambling. We’ll explore how these efforts aim to protect the voter-approved tribal gaming framework, the economic stakes involved, and why tribes are demanding immediate enforcement and legislative clarity.”
Social Gaming Leadership Alliance Responds to Louisiana Attorney General Opinion (press release): “The Social Gaming Leadership Alliance (SGLA) today expressed disappointment with a recent Louisiana Attorney General opinion characterizing online social games which utilize sweepstakes promotion as unlawful under state law. SGLA respectfully disagrees with this interpretation and remains committed to engaging with Louisiana officials to clarify the lawful and well-established sweepstakes frameworks under which our partners operate.”
“We are disappointed by the Attorney General’s opinion and fundamentally disagree with the notion that these platforms are operating outside the bounds of the law,” said Jeff Duncan, Executive Director of SGLA and former Congressman. “Our partners offer free-to-play entertainment based on long-standing promotional sweepstakes models used legally by consumer brands across industries. This is not gambling — it’s marketing.”
Opinion: It’s time to change up online casino legalization messaging (SBC Americas): “Unless something drastic occurs in Ohio or Maine gets signed into law, 2025 will mark the sixth-straight year the gaming industry has been shut out of any multi-operator online casino opportunities. … Part of the reason for this lack of success is that legalization proponents keep trying to use the same playbook it used to help expand sports betting, which focuses largely on tax revenues generated and the presence of illegal operators in the market. This lobbying focused approach has not been successful to date and has even resulted in negative unintended consequences like the recent tax increase in Illinois.”
Super Group Exiting US Online Casino Market (Legal Sports Report): “Super Group is pulling out of the US online casino market and is considering what to do with the business.”
“This is a difficult decision, particularly because our U.S. team has worked hard and made progress over recent quarters,” CEO Neal Menashe said in Tuesday’s release. “Nonetheless, recent regulatory developments combined with ongoing assessment of capital allocation requirements have led us to believe that our stringent hurdle for return on capital will likely not be met in this market any time soon. “We therefore intend to focus capital and resources on markets where we see the greatest opportunity for scalable, sustainable, profitable super growth, with a disciplined emphasis on operational efficiency.”
Presser here.
Judge denies fast-track trial in HG Vora’s lawsuit against Penn (Next.io): “A federal judge has denied HG Vora Capital Management’s request to fast-track its lawsuit against Penn Entertainment, which alleged that the company manipulated its board structure to block shareholder nominees and misled investors in proxy materials. … A federal judge has denied HG Vora Capital Management’s request to fast-track its lawsuit against Penn Entertainment, which alleged that the company manipulated its board structure to block shareholder nominees and misled investors in proxy materials.”
New York Lawmakers Considering Bill to Disallow All Gambling Loss Tax Deductions (Sports Betting Dime): “Last week, gamblers saw the federal government agree to a bill to reduce their potential gambling loss tax deductions by 10% with the passage of President Donald Trump’s (R) One Big Beautiful Bill Act. In New York, gamblers could be hit with a double blow as lawmakers are considering legislation to disallow any gambling loss deductions in state tax returns. Sen. Andrew Gounardes (D-26) introduced SB 7876 in May, an act to amend New York’s tax law to reduce the allowable itemized deductions for gambling losses to 0%. The state currently allows professional gamblers to deduct any and all losses as long as they do not eclipse a gambler’s winnings for the year. While the New York 2025 legislative session concluded on June 18, all bills that were not passed still remain live and are automatically introduced in the second year of the session. The next session will begin in January 2026.”
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