The Current: Republicans Are Now Pro Online Gambling And Anti-States' Rights
The CFTC chair's comments on prediction markets make the Trump administration's stance clear. Roundup: Virginia Senate, House pass online casino bill; offshore gambling site Bodog is rebranding.
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The Current is a weekly report on a new development in the gambling industry.
A few things you may be surprised to learn from me about the Republican Party as of today:
They are now the party of online gambling.
They are the party that believes in federal power over states’ rights.
OK, that might be a bit of an exaggeration — but it’s clearly the ethos coming from Republicans in Washington, DC, when it comes to prediction markets.
Over the past couple of days, the chairman of the Commodity Futures Trading Commission has made this abundantly clear: The Trump administration is 100% behind prediction markets.
First, there was an op-ed from CFTC Chairman Michael Selig in the Wall Street Journal:
“The CFTC will no longer sit idly by while overzealous state governments undermine the agency’s exclusive jurisdiction over these markets by seeking to establish statewide prohibitions on these exciting products.”
Then there was a video statement that Selig put out this morning underlining the CFTC’s position here. “We will see you in court,” Selig told the states in that statement.
As always, whether prediction markets legally constitute gambling isn’t up to me and you; it’s up to federal and state courts. What I can tell you is this: A lot of people are using prediction markets to gamble, particularly on sports.
We also have attorneys general from across the country — regardless of party affiliation — saying over the past year they don’t want prediction markets usurping state law. The CFTC — and by default the Trump administration — is telling them they don’t matter.
So if sports betting in all 50 states for everyone 18 and over ever goes sideways — Republicans, you signed up for this.
To be fair, not all Republicans have signed up for this:
Former New Jersey Gov. Chris Christie, now an advisor to the American Gaming Association:
Chris Christie@GovChristieViolating the rights of states who have been regulating sports betting and the rights of the states who oppose sports betting is not the purview of another alphabet soup federal agency. That’s what you’re doing. Yes I am standing up for the rights of all 50 states. Proud of it.
Mike Selig @ChairmanSeligChris Christie is leading a campaign to ban American Prediction Markets in states across the country. We’re simply not going to allow that to happen.6:07 PM · Feb 17, 2026 · 3.29K Views2 Replies · 3 Reposts · 31 LikesAnd Utah Gov. Spencer Cox:
Governor Cox@GovCoxMike, I appreciate you attempting this with a straight face, but I don’t remember the CFTC having authority over the “derivative market” of LeBron James rebounds. These prediction markets you are breathlessly defending are gambling—pure and simple. They are destroying the livesMike Selig @ChairmanSeligI have some big news to announce…4:21 PM · Feb 17, 2026 · 379K Views97 Replies · 254 Reposts · 2.51K Likes
I wrote more about all of this — and a roundup of prediction markets news — here:
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Gambling news roundup
Virginia Senate and House approve online casino at second attempt (SBC Americas): “The Virginia Senate approved the idea of legalizing online casino gaming by the skin of its teeth on Monday after the bill was defeated in its initial floor vote in the full chamber. Voting on Sen. Mamie Locke’s SB 118 on Feb. 16, senators initially tallied 20-19 against passing the bill onto the House of Representatives, before a senator called for a reconsideration. After the reconsideration measure was approved, senators re-voted on the bill itself later in the day and passed it by a narrow second vote of 19-17. …”
On Tuesday, the day after the Senate voting drama, a similar situation played out in the House. The companion bill in that latter chamber, Del. Marcus Simon’s HB 161, was rejected by a 46-49 vote on the House floor on Feb. 17 ahead of the crossover deadline. As with the Senate bill, lawmakers approved a motion to reconsider later in the day and the House passed its bill 67-30 in the re-vote. …”
“Now, SB 118 and HB 161 are set to swap chambers.”
Here’s a statement offered to The Closing Line from John Pappas, State Advocacy Director, iDevelopment and Economic Association (iDEA): “This week’s votes are a major step forward for Virginia. We applaud lawmakers for advancing legislation that will expand consumer protections, strengthen the land-based casino industry, and generate significant new revenues for the Commonwealth. Notably, this progress comes despite a wave of misleading claims from opponents that mischaracterize how regulated iGaming works and what it actually means for consumers, accountability, and Virginia’s existing gaming industry. There is still significant work ahead to reconcile the House and Senate versions and get this across the finish line, but the momentum and the facts are clearly on the side of a safe, regulated marketplace.”
Bodog’s Run Comes to End as Offshore Gaming Operator Rebrands (Covers): “One of the most notable brands in online offshore gaming will cease to exist after nearly 30 years of business. Bodog Canada announced maintenance will begin early Tuesday. Bodog, which still operates as an online casino and poker room in Canada, Latin America, Asia, and Europe under that brand, announced Monday that the owner decided to discontinue the use of the name with gaming operators.”
“While we are thankful for such a positive partnership for so many years, this presents us with an opportunity for us to relaunch under a different brand name,” Bodog told its users.
X prohibits gambling Paid Partnerships in policy update (Next.io): “X has quietly revised its Paid Partnerships policy to exclude gambling from permitted industries for organic commercial collaborations, altering how affiliates and betting brands operate on the platform. The framework only recently included gambling on its Prohibited Industries list, seemingly updated on 13 February with no notice. The update covers ‘gambling products and services (including lotteries, social casinos, sports betting, and other gambling related content).’ X defines a Paid Partnership as any post created in exchange for compensation or incentive from a third party.”
Polymarket and Kalshi are illegal, regulator says (Newsroom): “Polymarket, Kalshi and similar prediction markets are illegal under New Zealand’s gambling laws, the nation’s gambling regulator has decided. … Department of Internal Affairs gambling director Vicki Scott tells Newsroom it believes they are illegal gambling platforms. …
“We consider platforms such as Kalshi and Polymarket to be gambling under New Zealand law,” Scott says. “Since they aren’t authorised operators, they are prohibited from offering their gambling products to people in this country.”
“To the extent these platforms are taking bets from New Zealand customers, they are breaching the law here and can expect to hear from us.”
Kalshi’s member agreement now includes New Zealand in a list of prohibited countries.
Kalshi and Polymarket Are Eating Sports Gambling | The Trump administration says prediction markets are something different. Do their users agree? (New York Magazine): “By specifically referencing hedging, Selig draws a parallel between what Kalshi and Polymarket allow people to do and, say, how a farmer minimizes the risk of an unpredictable harvest by selling grain-futures contracts. (Worried that a given candidate winning an election might hurt your business? Place a hefty bet on him or her on prediction markets to balance your risk profile — so goes this argument.) In doing so, the CFTC chair sounds an awful lot like prediction-market executives, who prefer to emphasize how their field is more useful to the world than, say, DraftKings.”
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Historical Horse Racing Bill Faces First Committee Test on February 25 in Maryland legislature (press release): A new bill with bipartisan support will face its first General Assembly committee hearing on February 25 at 1:00pm in the Miller Senate Office Building. Journalists are invited to speak with the bill’s sponsors this week. Credentialed media this week are invited on tours to local Off Track Betting (OTB) sites and urged to schedule a virtual Zoom-based technology tour. The tours feature experts who show how the betting systems work in-practice, what the screens look like, and how the technology is designed for players to bet against one another, not “the house.”
“We’ve not only waited long enough only to bring this to Maryland, we’ve reached a point where it would be irresponsible not to grow these businesses and bring this revenue to parts of our state that need it,” said State Senator Karen Lewis Young (D-Frederick County). “We’re going to make this happen because Maryland businesses are counting on us to get it done.”
“When we bring Maryland into the future with historical horse racing, it will be a total celebration of our local small businesses especially in Frederick County which have wanted too long for us to make this happen,” said State Delegate Kristopher G. Fair (D-Frederick County). “This committee is just the first step. What we need to do is get every legislator to see this technology in real life so they can see how it could bring tens of millions of dollars to our state.”
Gambling bills struggle to remain alive amid Hawaii’s prohibition on wagering (The Garden Island, paywall): “A bill that would allow cruise ship gambling — even while ships are docked in Hawaii ports — stalled in a House committee Wednesday while another bill that would allow sports betting squeaked through as the state Legislature continues to debate whether to end Hawaii’s prohibition on gambling.”
Federal Prosecutors Want Alleged Pitch-Rigging Co-Conspirators Tried Together (InGame): “Federal prosecutors on Tuesday will assert their preference with the Eastern District of New York that former Cleveland pitchers Emmanuel Clase and Luis Ortiz, along with Robinson Vasquez Germosen, their alleged co-conspirator in a pitch-manipulation scheme, be tried all together. The trial is currently scheduled for May 4.”
How Can Sportsbooks Keep Dabblers Interested After Super Bowl Is Over? (InGame): “But maybe, Anika Howard, the president and CEO of Wondr Nation, gambling/entertainment company that uses tech and trends to create new experiences for players, told InGame, these gambling companies should be working harder to keep these tent-pole event dabblers dabbling more often. In an era when the periphery is bettable, and online interaction is a social staple, an opportunity is being missed, she said.”
“You have this really, really big spike, and then in terms of market, it levels off, then you see kind of a drop. But the big opportunity is the other things that you can offer that tie in,” said Howard, whose clients include the Mashantucket Pequot Tribal Nation in Connecticut. “I think some of that drop is really where the opportunity lies, because there’s this big build-up, and everyone’s doing all these things for the Super Bowl, but no one’s really actively doing or investing, or kind of being as intentional after that.”
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