Weekly News Desk
Here are some stories you may have missed from another whirlwind week
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Now on to the News!
CFTC votes against Kalshi Election case. The CFTC dropped its case related to election prediction markets this week. Originally filed during the Biden Administration, the motion to dismiss appears to mark the end of this particular legal chapter involving Kalshi.
Why does it matter: Yes, this case was about elections, but it’s not hard to interpret the CFTC’s decision as signaling a softer approach towards prediction markets coming from the CFTC. With Kalshi Board Member–turned–CFTC Chair Nominee Brian Quintenz awaiting a Senate confirmation hearing, this development seems like another win for Kalshi that, in my opinion, keeps the administrative momentum moving in its favor. The path likely won’t be linear but I expect more good news than bad for prediction markets in the coming months.
Gambling Punishment. Five Iowa State Athletics Department staffers were punished by the NCAA last week for gambling on sports, including on Iowa State sports. In total they placed more than 6,200 bets worth over $100,000.
Why does it matter: It seems the NCAA still has rules and consequences for some people (staffers) even if they seem non-existent for many (players and coaches) today. Players or coaches gambling is obviously much more high-profile and potentially more damaging to game integrity, but staffers have access to a tremendous amount of “inside information” which is why their gambling on games is against the rules.
Aussie Elections. Australia held its parliamentary elections on May 3rd and the Labor Party maintained it majority in a landslide victory.
Why does it matter: While this may not seem related to gambling or sports , the Labor Party has taken a “measured approach toward reforming gambling and sports betting [laws], particularly in relation to advertising” according to Next.IO. The party has also proposed other responsible gambling reforms. There have been similar pushes here in the U.S., particularly in the SAFE BET Act, so if these measures are implemented in Australia, the resulting data may help inform reform efforts across the U.S..
Bigger in Texas. One Texas legislator thinks that there is so much corruption tied to the state-run lottery that the entire system should be dismantled.
Why does it matter: This isn’t a story about sports gambling specifically, but it highlights corruption and organized crime within the broader gambling ecosystem. If Texas can’t root out corruption without blowing up the whole lottery, imagine how much of a problem corruption is in other gambling or gambling adjacent operations. Countering financial crimes takes resolve and persistence. Hopefully, operators in sports gambling, fantasy sports, sweepstakes, and beyond are paying attention and actively working to keep their platforms clean and fair.
No More Monopoly? Steve Ruddock at Straight to the Point reports on legislation out of Rhode Island that would end the state-run lottery’s monopoly on sports gambling.
Why does it matter: Sports gambling revenue has been declining in the Ocean State and it’s possible that new competition from operators already active in neighboring Massachusetts and Connecticut could spur growth. The 51% tax on sports betting doesn’t help either. Ruddock notes the bill is unlikely to pass this session, but it signals that some lawmakers recognize the need for change. If states are the laboratories for federal legislation, then maybe the glut of gambling legislation at the state level portends more debate in Washington soon?
Thanks for reading and have a great weekend!
Very informative.