Kalshi versus the world
The counter to the prediction markets free-for-all has landed
Five separate amicus briefs have been submitted in support of New Jersey.
Sweeps roundup: Louisiana and Mississippi issue sweeps cease-and-desists, as the New York legislature passes anti-sweeps bill.
Applicants for New York’s downstate casinos will have to stump up at least $1bn.
Tabcorp hit with record A$4m fine over VIP spam breaches.
Your biggest tech problems. Solved.
Fincore delivers technical solutions for the Gaming industry. For over 25 years we’ve helped clients modernise legacy platforms, unblock roadmaps, integrate complex systems, and apply AI to real-world problems. We’ll help you shape the right strategy, and then we’ll roll up our sleeves and deliver it.
Our edge? A world class team with deep domain knowledge, armed with our highly customisable IP toolkit that adapts to your architecture, whether modernising legacy or starting from scratch. That means faster delivery, smoother integration and less risk.
The reckoning
Here comes the cavalry: The Third Circuit Court of Appeals became ground zero in the fight over prediction markets, as on Wednesday five separate amicus briefs landed in support of New Jersey’s effort to kick out Kalshi.
Submissions came from 34 state attorneys general, major tribal coalitions, casino operators and anti-gambling advocates, all warning Kalshi’s sports contracts threaten state and tribal authority.
Leading the charge: Nevada and Ohio AGs led the states’ brief, arguing the Commodity Exchange Act doesn’t override state rights to regulate gambling. They said the rights were reaffirmed by the 2018 repeal of the Professional and Amateur Sports Protection Act, which previously barred state-authorised sports betting.
“The amici are doing exactly what they’re supposed to: explaining the importance of this case,” said gaming attorney Andrew Kim at Goodwin. “The Third Circuit has a more complete picture of the seismic regulatory upheaval Kalshi’s legal position would unleash.”
Sovereign down on me: A coalition of 60 federally recognized tribes and nine tribal organisations also joined the case, citing violations of the Indian Gaming Regulatory Act, unauthorised activity on tribal lands and underage betting through Kalshi’s platform.
“Talk about participation,” said gaming attorney Daniel Wallach. “Hundreds of tribal nations have signed on, directly or through representative groups.”
“Their analysis of Commodity Futures Trading Commission (CFTC) Rule 40.11(a)(1) – the most thorough to date – may prove to be the difference-maker,” he added.
The rule prohibits event contracts that involve gaming or violate state or federal law, and the tribes argue Kalshi’s products are squarely within that banned category.
The brief warns Kalshi is acting without tribal licensure or compact authority, undermining sovereignty and regulatory control in tribal jurisdictions.
Stacking papers: The surge of filings adds to Kalshi’s mounting legal battles and political entanglements concerning its federal-but-not-state-licensed model.
Kalshi insists its peer-to-peer contracts fall within CFTC jurisdiction, not gambling law, and continues to operate under preliminary injunctions in New Jersey and Nevada.
Commercial groups warned the CFTC is unequipped to oversee sports betting and that Kalshi’s model evades taxes, consumer protections and accountability.
“Kalshi’s entrance into the gaming market has adversely impacted tribal gaming revenue,” the tribal brief said.
GuardDog, powered by Underdog, is a pioneering investment fund dedicated to fostering innovation in responsible gaming.
GuardDog supports and accelerates early-stage startups focused on building new and creative solutions to address problem gaming and further responsible gaming.
Ready to be one of the underdogs of responsible gaming?
Visit to apply: https://underdogfantasy.com/guarddog
+More
Japan is escalating its crackdown on illegal online gambling by urging eight foreign jurisdictions, including Curaçao, Malta and the Isle of Man, to block access to their casino sites. A new bill, expected by the end of June 2025, will formally outlaw the promotion and operation of online casinos in Japan, targeting both platforms and referral links shared via social media.
Sweden plans to expand its Gambling Act to ban all forms of credit for gambling, including third-party loans and credit cards, starting April 1, 2026. Licensed operators would be barred from accepting credit-funded bets or collaborating with credit providers, and must use existing tech to block such payments.
Dominican Republic President Luis Abinader has proposed creating a new gambling regulator. The General Directorate of Games of Chance or DGJA, under the Ministry of Finance, would oversee compliance, taxation and sanctions across all gambling activities, with added powers to investigate and penalise violations. It is not yet known if the new body will replace the Directorate of Casinos and Gambling, which has faced scrutiny since an $8.5m lottery fraud in 2021.
The gaming REIT Gaming & Leisure Properties has joined the National Association Against iGaming. GLP said it was opposing online gaming in an effort to preserve in-person gaming while also protecting communities from the risks of online gambling.
What we’re reading
Bluhming typical: LegalSportsReport’s deep dive on the billionaire Neil Bluhm’s grudge against DraftKings and FanDuel that culminated with a new tax paradigm.
Senior KYC Operator – Cyprus
Head of Compliance – Limassol
Compliance & Legal Manager – Johannesburg
Cease-and-desist blizzard
At least the postal service is being kept busy: Louisiana and Mississippi are the latest states to send flurries of cease-and-desist letters to sweepstakes gaming operators, including the leader in the field VGW, while the New York legislature passed an anti-sweeps bill.
Most in need of stamps was Louisiana where the gaming regulator, in coordination with the attorney general and state police, issued letters to 40 offshore wagering and sweepstakes operators.
Meanwhile, Mississippi pushed out 10 letters to sites, including VGW’s Chumba Casino.
Clear and present danger: The Louisiana letter said the operators violated state gaming laws. Recall, just last week Gov. Jeff Landry vetoed a bill aimed at outlawing sweepstakes, arguing it was unnecessary given enforcement capabilities open to the authorities.
Louisiana Gaming Control Board chair Christopher Hebert emphasized the action sent a clear message.
“Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry,” he said.
The Mississippi authorities said its “laws are clear that casino-style gaming and sports wagering are not allowed online in Mississippi, outside of a licensed casino.”
Empire state of mind: The last of the bad news – for now, perhaps – for the sweepstakes sector was that from New York, where the legislature has passed a bill prohibiting their operations within the state.
Recall, New York’s attorney general sent cease-and-desist letters to 26 operators just last week.
On your bike: The Social and Promotional Games Association (SPGA) was quick to lament the move, saying it “sends a chilling message to anyone looking to invest in the next generation of gaming innovation.”
"Nearly every form of online gaming we know today, including companies like FanDuel, a New York-based success story, began as pre-regulated concepts,” an organization statement added.
“This legislation criminalizes that innovation cycle.”
The SPGA went on to urge New York governor Kathy Hochul to follow Landry’s example in Louisiana and veto the measure.
Increase Operator Margins with EDGE Boost Today!
EDGE Boost is the first dedicated bank account for bettors.
Increase Cash Access: On/Offline with $250k/day debit limits
No Integration or Costs: Compatible today with all operators via VISA debit rails
Incremental Non-Gaming Revenue: Up to 1% operator rebate on transactions
Lower Costs: Increase debit throughput to reduce costs against ACH/Wallets
Eliminate Chargebacks and Disputes
Eliminate Debit Declines
Built-in Responsible Gaming tools
To learn more, contact Matthew Cullen, chief strategy officer on Matthew@edgemarkets.io
New York City licenses
The price is right: Applicants for one of New York’s three downstate casino licences need $1bn for a seat at the table. They must commit $500m in licence fees and another $500m in capital investment, per new requirements unanimously approved this week by the Gaming Facility Location Board.
Applications close on June 27, with licences expected to be awarded before year end.
All projects must complete zoning, land use and environmental reviews by September 30.
Will it ever end: Even qualifying bids face intense political and procedural scrutiny; a Community Advisory Committee (CAC) must approve each application by two-thirds majority.
CACs will hold public meetings and assess local support for each proposed venue.
New York City-based bids require approval from the governor, mayor and district lawmakers.
Developers say the zoning deadlines leave very little time to secure municipal sign-off.
All the pretty horses: The protracted process has led to several heavyweights pulling out in recent months, and now only eight bids remain. Active contenders include Caesars Times Square, Freedom Plaza, Resorts World and MGM’s Empire City.
MGM’s Yonkers bid is the only remaining proposal outside the five boroughs.
Wynn and Las Vegas Sands exited earlier this year, citing community resistance and legal uncertainty.
Saks Fifth Avenue dropped plans for a casino bid in April without public explanation.
Tabcorp fine
Tin opener: Australia’s national communications regulator has imposed a A$4m ($2.6m) fine on Tabcorp after an investigation found widespread breaches of the Spam Act 2003 in its marketing to VIP customers.
Wassup: The Australian Communications and Media Authority (ACMA) found TAB sent more than 5,700 SMS and WhatsApp messages to members of its VIP program between February and May 2024, in breach of consent and identification requirements.
These included 2,598 messages that offered no option to unsubscribe.
Another 3,148 that failed to provide adequate sender information and 11 that were sent without any customer consent at all.
Spam compliance: ACMA’s Samantha Yorke described the violations as “deeply concerning,” especially given the messages were part of a targeted VIP marketing effort that included incentives such as bonus bets and event tickets.
“This is the first time the ACMA has investigated and found spam breaches in a gambling VIP program,” Yorke said.
“It is utterly unacceptable that TAB did not have adequate spam compliance systems in place.”
Age of consent: Yorke also emphasised that VIP programs should not be conflated with high-roller segments. “These types of gambling VIP programs can involve customers who are not well off and are experiencing significant losses,” she said.
Under Australian spam laws, businesses must obtain express consent before sending marketing communications.
Those messages must also include clear sender identification and an easy, functional option to unsubscribe. Failure to comply can lead to significant penalties.
Remedies: In addition to the A$4m fine, Tabcorp has entered into a three-year court-enforceable undertaking that requires the company to conduct an independent review of its direct marketing practices, implement system improvements and conduct quarterly audits.
It must also provide staff training and report regularly to the ACMA.
The regulator noted the action is part of a broader crackdown on direct marketing compliance, particularly in the gambling sector.
Over the past 18 months, ACMA has issued more than A$16.9m in fines for spam-related breaches.
It has also issued updated guidance to help businesses understand their obligations regarding consent and direct marketing.
Calendar
Jun 19: Player protection symposium, CGS Toronto
Jun 26: Gaming in Spain, Madrid
Jul 1: Technology in Gaming, London
Jul 14-16: OIGA, Oklahoma City
Rewire your RG Strategy
Founded on over a decade of groundbreaking research in neuroscience and neuroimaging, Mindway AI revolutionises safer gambling solutions. We combine innovative AI technology and deep insights into problem gambling from an expert panel to create secure, responsible gaming environments. Trust Mindway AI for a smarter, safer gambling experience.
Learn more at mindway.ai
An +More Media publication.
For sponsorship inquiries email scott@andmore.media.
