The Early Line: CFTC Vs. Kalshi Election Betting Case Appears To Be Over
Gambling news roundup: Kentucky Derby sets record for handle; sweepstakes legal updates; Texas Lottery could be shut down.
TCL offers a roundup of recent US gambling news with analysis called The Early Line every Monday.
CFTC asks for dismissal of federal appeal against Kalshi: The federal case involving the Commodity Futures Trading Commission trying to stop Kalshi from offering election betting appears to be over. The CFTC filed an “unopposed motion for voluntary dismissal” in the US Court of Appeals for the District of Columbia Circuit on Monday.
The news was first reported by Bloomberg (paywall).
From the filing: “Appellant the Commodity Futures Trading Commission (‘Commission’), pursuant to Federal Rule of Appellate Procedure 39 and 42(b) and Circuit Rule 39 and 42(b), hereby moves that this appeal be voluntarily dismissed, on terms agreed upon by the parties in the attached Joint Stipulation, namely that each party will bear its own costs, court fees and attorney fees incurred in the proceedings before this Court, the district court, and in administrative proceedings before the Commission, and Appellee KalshiEx LLC (“Kalshi”) waives any and all claims relating to or arising from litigation of this matter before this Court, the district court, or administrative proceedings before the Commission, that Kalshi may have…”
You can see the whole thing here:
Reading the line: In reality, it was shocking this case was still going on at all. Oral arguments happened earlier this year in the appeal, and there had been a filing by the CFTC and a response by Kalshi after Nevada had sent a cease-and-desist letter to Kalshi for allegedly offering election betting and sports betting illegally in the state. The election betting case had started under the Biden administration; meanwhile, President Donald Trump had hailed prediction markets and election betting in the wake of his November victory. The case had stood in stark contrast to the permissive and hands-off approach the CFTC has taken on the expanding sports betting offering from Kalshi and Crypto.com.
Kentucky Derby sets new record for handle (Bloodhorse): “Despite a rain-soaked day, the 151st Kentucky Derby (G1) managed to set handle records for the race, the day, and the week as Sovereignty claimed the roses. After the conclusion of the May 3 card, Louisville, Ky.-based Churchill Downs Inc. reported business results for Kentucky Derby week, which is a huge driver for the company's racing division. Company officials had signaled days ago that results would be similar to last year's — as opposed to the frequent year-over-year gains. All-sources betting on the Kentucky Derby card at Churchill Downs reached $349 million, up 9% from last year's record $320.5 million. Betting on this year's 19-horse Derby race totaled $234.4 million, up 11% from last year's record $210.7 million in a 20-horse Derby.”
Reading the line | The good news for the horse racing industry is that the tentpole events continue to drive more interest, both from gambling and in the ratings. (It was the most-viewed Derby since 1989, per NBC.) The bad news is that handle is dropping in the industry overall. While a resurgence of the sport overall seems unlikely, the Derby, at least, remains a winner in terms of eyeballs and wagering. FanDuel and DraftKings both have horse-racing apps that allow them to keep folks in their ecosystem and create new users and reactivate existing ones.
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The sweepstakes corner: Lots of recent news…
Seacrest in! TV host named in Chumba Casino lawsuit (SBC Americas): “The latest in a long list of lawsuits against sweepstakes operators has a little more star power than some of the others. A California woman has named popular host Ryan Seacrest in a lawsuit that also includes VGW, the company behind popular sweepstakes brands like Global Poker, Chumba Casino and Luckyland Casino. The woman, Aubrey Carillo, originally filed the suit in October of last year, but amended her complaint with the Riverside County Superior Court last month. While the original complaint only named VGW, the new complaint brought in the American Idol host, who is also a spokesperson for Chumba…”
Florida Sweepstakes Gaming Prohibition Bills Now Dead (Sports Betting Dime): “Despite lawmakers agreeing to extend the Florida legislative session, a pair of bills prohibiting dual-currency sweepstakes gaming will no longer be considered. Sine die in the Sunshine State was originally scheduled for Friday, May 2. However, state lawmakers agreed to extend the session through Friday, June 6, to come to an agreement on the budget and any related budget legislation. Sen. Corey Simon‘s (R-3) bill, SB 1404, a piece of legislation that includes a prohibition on sweepstakes gaming in the state, and its House counterpart HB 1467, will no longer be considered.”
The Social and Promotional Games Association: “These broad anti-sweepstakes bills attempted to criminalize free-to-play digital entertainment, recklessly expand government control over lawful consumer activity, and needlessly restrict business and innovation.”
New York sweeps bills would let regulator define ‘dual-currency’ (SBC Americas): “The New York Senate has amended a bill that would prohibit online sweepstakes to clarify that the state’s gambling regulator would get to define what is or isn’t a “dual-currency system. … An amendment made to the bill at third reading last week clarifies that the New York State Gaming Commission will be the group that determines what sites do and not qualify as a dual-currency system.”
Reading the line: Despite a lot of hue and cry about sweepstakes gambling, we’ve not yet had an actual bill passed. (There has been some regulatory crackdown, however.) It’s important to note these bills just aren’t making the finish line; they are not being voted down. Whether that counts as momentum or not is in the eye of the beholder. Far more bills are introduced than pass in every state every year. Still, if you’re the sweepstakes industry, it would be far worse for bills to pass now, and it’s not clear similar legislation will have momentum in 2026.
Texas Lottery faces an uncertain future. Could this be the end? (Dallas Morning News): “Some legislators are pushing to eliminate the Texas Lottery amid questions about its management and multiple criminal investigations. What started as concerns over whether lottery officials violated Texas law by allowing couriers to take online ticket orders has ballooned into the Texas Rangers and Attorney General Ken Paxton investigating potential crimes related to two multimillion dollar jackpots. The controversy has put the lottery in limbo. With weeks left in the legislative session, lawmakers haven’t budgeted funds for the agency that operates it. Bills to eliminate the lottery may not be necessary.”
Reading the line: While the lottery courier industry fights to stay in business in Texas, it may not have anything to sell even if Lotto.com wins its case in court. The sale of online lottery tickets leading to the shutdown of an entire state lottery would certainly be something.
Gambling news roundup
Buffalo Thunder and Cities of Gold Casinos Sign Multi-Year Agreement with Light & Wonder to Modernize Tech and Systems (press release): Light & Wonder today announced a multi-year, multimillion-dollar agreement with Buffalo Thunder and Cities of Gold Casinos in New Mexico to modernize their casino systems and operations. The two properties, both operated by the Pueblo of Pojoaque, are early adopters of iVIEW PRO™ S, Light & Wonder’s latest casino hardware solution. This advanced player interface enhances the gaming experience by displaying dynamic content and enabling customer interaction. The solution will be deployed across 1,400 slot machines, along with a full suite of system technologies designed to streamline operations, reduce information technology (IT) overhead, and make gameplay even more enjoyable for players.
‘Buffalo Thunder and Cities of Gold Casinos provide excellent gaming experiences to their players,’ said Jon Wolfe, President of Global Systems and Services at Light & Wonder. ‘We’re excited to take the next step with them to deploy a modern, connected gaming environment that their patrons will love.’”
IGT PlaySports Introduces World-Class Retail Sports Betting to Silver Reef Casino Resort (press release): “International Game Technology PLC ("IGT") (NYSE: IGT) announced today that IGT PlaySports™ technology is now powering retail sports betting at Silver Reef Casino Resort in Ferndale, Wash. This technology agreement builds on IGT PlaySports' leadership in the region, marking the 11th casino in Washington State to deploy the Company's award-winning sports betting platform, and the 10th casino in the State to leverage its trading advisory services. ‘Silver Reef Casino Resort is excited to partner with IGT PlaySports for the relaunch of our sports betting offering,’ said Wendy Carter, Silver Reef Casino CEO. ‘We believe that IGT PlaySports' proven technology and experienced trading advisory team will help us attract sports fans with a premier betting experience and engage guests with localized offers.’
News story tips off Raleigh woman to $150,000 Powerball win (NC Lottery): When Megan Sikora-Stypolkowski of Raleigh saw an article about a $150,000 Powerball winner from Raleigh, she logged on to her account and found out that she was the winner. ‘I originally googled ‘NC Lottery’ because I was going to log in to my account to check the numbers from the drawing,’ Sikora-Stypolkowski recalled. That search brought up a Google article from the Raleigh News & Observer about an unclaimed $150,000 Powerball winning ticket from Raleigh.
‘I was with my coworker at the time and I said, ‘Wouldn’t that be funny if it was me,’’ Sikora-Stypolkowski laughed.”
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