Rep. Raja Krishnamoorthi is pressing prediction market platform Polymarket for answers about its marketing practices, arguing that paid influencer partnerships may have helped spread election misinformation while creating financial incentives tied to election betting.

In a July 14 letter to Polymarket CEO Shayne Coplan, the Illinois Democrat said he is concerned about “the role of prediction-market platforms in amplifying and profiting from election misinformation and false claims of voter fraud,” pointing to recent reporting about the company’s promotional activities.

Krishnamoorthi said those reports raise broader questions about how election prediction markets are marketed and whether existing safeguards are sufficient to stop misleading claims about election integrity from gaining traction. According to the letter, weaknesses in influencer, affiliate and sponsored-content programs may allow election misinformation to spread while benefiting platforms, paid promoters and market participants.

Election marketing concerns add to growing challenges for Polymarket

The lawmaker cited reporting involving both Polymarket and Kalshi, saying political influencers promoted election markets while also questioning the legitimacy of contested races. He wrote that these arrangements demonstrate how “inadequate guardrails in affiliate programs can enable sponsored content to blend with misleading election-fraud narratives.”

Krishnamoorthi also said Polymarket sponsored influencers who promoted election-denial claims while advertising active election betting markets. He argued that such arrangements create situations where both the company and its users “may financially benefit from speculation driven by allegations of election fraud.”

“These dynamics create dangerous incentives,” he wrote. “When political influence and financial incentives become intertwined, platforms risk incentivizing premature claims, misleading narratives, and false allegations before votes are fully counted or certified.”

The congressman also referenced reports that social media influencers cited prediction-market odds while falsely suggesting the Los Angeles mayoral election had been manipulated despite no evidence of fraud. He said combining market odds with those claims could undermine public confidence in elections.

The latest congressional scrutiny arrives as Polymarket faces pressure on several other fronts. In late June, the company disclosed that a compromised third-party vendor injected malicious code into parts of its frontend in what security researchers later identified as a phishing campaign rather than a breach of its underlying smart contracts. Researchers estimated attackers stole roughly $3 million before the company removed the malicious dependency and pledged to fully reimburse affected users.

At the same time, U.S. lawmakers had already urged the Commodity Futures Trading Commission to examine allegations surrounding Polymarket’s marketing practices following claims in ongoing litigation involving undisclosed paid influencers and promotions allegedly targeting American consumers. CNBC has also reported that the CFTC opened an investigation into Polymarket, although the agency has not publicly confirmed it.

Krishnamoorthi requested a response by July 28, seeking details about Polymarket’s influencer relationships, vetting procedures, internal discussions and election-related marketing policies. He also called for stronger safeguards, including clearer disclosures and restrictions on paid promotions that could mislead the public.

“Waiting until misinformation has already spread is insufficient,” Krishnamoorthi wrote. “Platforms that profit from election-related prediction markets have a responsibility to ensure that their products are not used to fuel false claims, undermine confidence in election results, or erode trust in free and fair elections.”

Featured image: Congressman Raja Krishnamoorthi via Facebook / Polymarket

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The Commodity Futures Trading Commission (CFTC) has directed Kalshi to complete pending trades that the prediction market operator had previously unwound after a Michigan state court order. The move leaves the company arguing it is now trapped between conflicting legal demands from state and federal authorities.

The agency said it had stayed a Kalshi rule change and used its emergency authority to require the exchange to honor the affected trades. That decision effectively reverses Kalshi’s earlier response to the Michigan court order and prompted the company to say it is being forced into an impossible position.

Kalshi sharply criticized the regulator’s action in a statement from its Head of Enforcement and Legal Counsel, Robert Denault. The company said it reversed the trades only because it believed compliance with the Michigan court’s directive was mandatory.

“We are disappointed by this decision and believe it is unfair to Kalshi. We already acted and unwound the trades, as the Michigan court order required us to do,” Denault said.

The company said the CFTC’s order leaves it caught between state and federal authorities.

“We are being put in an impossible position, looking to follow state court orders that may contradict our federal regulatory obligations,” Denault said.

He added, “We did not have a choice.”

CFTC order deepens legal standoff between Michigan and Kalshi

According to the CFTC, the agency exercised its emergency authority to stay Kalshi’s rule change and require the exchange to fulfill the pending trades affected by the earlier unwind. Kalshi maintains it acted appropriately when it canceled those trades because it was complying with the Michigan court’s instructions. The company now says the federal directive conflicts with its obligations during the state court proceedings.

The latest dispute grows out of a lawsuit filed by Michigan Attorney General Dana Nessel, who alleges Kalshi is operating an unlicensed sports betting business in the state under the appearance of a federally regulated prediction market. The complaint argues Michigan residents can buy contracts tied to sporting events without approval from the Michigan Gaming Control Board, violating state gambling laws and the Lawful Sports Betting Act.

State lawyers cited contracts tied to hockey, golf, basketball and other sporting events, saying customers profit if their predictions are correct. Michigan has argued that sports-based event contracts function as gambling, while Kalshi has consistently maintained that its products are financial instruments governed by federal commodities law rather than state gaming rules.

The legal fight recently shifted again after a federal judge sent the case back to Michigan state court, rejecting Kalshi’s effort to keep the dispute in federal court. That ruling cleared the way for Michigan’s request for a preliminary injunction to continue before the state court.

“A state cannot force a DCM to violate its obligations, and federal law does not permit a DCM to discriminate against a state’s residents,” said Chairman Michael S. Selig. 

“Canceling trades that have already been executed is an unprecedented step that risks a cascading effect on the entire marketplace and undermines the certainty in contracting that is a necessary component of a functioning market. The Commission will not allow states or state courts to bully registered entities into violating the Commodity Exchange Act and CFTC regulations.”

Featured image: Kalshi / Canva

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Federal prosecutors have asked a federal judge in Brooklyn to schedule guilty plea hearings for 12 defendants accused of taking part in an alleged NBA-related scheme that cheated players during illegal poker games held across the United States.

In a July 14 letter seen by ReadWrite, the U.S. Attorney’s Office for the Eastern District of New York told U.S. District Judge Ramon E. Reyes Jr. that Nelson Alvarez, Louis Apicella, John Gallo, Marco Garzon, Jamie Gilet, Shane Hennen, Horatio Hu, Zhen Hu, Nicholas Minucci, Michael Renzulli, Angelo Ruggiero Jr., and Julius Ziliani are expected to plead guilty to Count One of the indictment. Prosecutors asked the court to place change-of-plea hearings on its calendar and said an elements sheet for the offense accompanied the request.

Twelve defendants move toward guilty pleas in alleged NBA-related poker conspiracy

Count One charges conspiracy to commit wire fraud. Prosecutors contend the conspiracy operated from at least 2019 and relied on sophisticated technology to secretly identify players’ cards before relaying that information to coordinated cheating teams. According to the indictment, the operation targeted illegal poker games in New York City and other locations around the country, leaving victims with losses that prosecutors previously estimated at more than $7.15 million.

Investigators allege the defendants used altered card-shuffling machines, hidden wireless devices and other technology to determine cards, predict winning hands and send information in real time to players seated at the tables. Members of the alleged teams then communicated through covert signals, giving them an advantage over opponents who believed they were participating in ordinary underground poker games.

The indictment, unsealed in October 2025, charged 31 people and alleged ties to members and associates of the Bonanno, Gambino and Genovese crime families. Court filings describe two recurring Manhattan poker locations, identified as Washington Place and Lexington Avenue, where prosecutors say rigged games regularly took place. The Washington Place operation allegedly served as the central hub, while a participant known as the “Quarterback” was accused of relaying card information received through concealed technology.

Federal prosecutors have also alleged that organized crime figures approved or protected some of the gambling operations, collected portions of the proceeds and helped recover gambling debts. The indictment includes additional counts involving money laundering, extortion conspiracies and robbery conspiracy against various defendants, although the latest filing says these 12 defendants are expected to plead guilty only to the wire fraud conspiracy charge.

Several defendants named in the latest request, including Apicella, Gallo, Hennen, Zhen Hu, Renzulli and Ruggiero Jr., were previously identified by prosecutors as participants in the alleged cheating operation. Former NBA figures Chauncey Billups and Damon Jones were also charged in the original case as alleged “Face Cards” who prosecutors say attracted wealthy poker players, while Jones has separately appeared in court filings connected to an ongoing federal sports betting investigation. The government has not said when the requested plea hearings will be scheduled.

Featured image: Canva

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Alberta officially opened its regulated online gambling market on Monday (July 13), creating one of the most significant developments in Canada’s iGaming industry since Ontario introduced its competitive framework in 2022. The new system begins with 22 registered online gambling sites, giving Albertans access to major international sportsbook and casino brands through a provincially regulated environment built around consumer safeguards and responsible gambling standards.

Service Alberta and Red Tape Reduction Minister Dale Nally joined Alberta iGaming Corporation CEO Dan Keene at a news conference in Edmonton to mark the launch. They said the province’s approach is designed to encourage players to leave offshore gambling websites and instead use licensed operators that must meet Alberta’s rules for accountability, security and player protection.

“Today, Albertans have a responsible legal alternative where operators are held to high standards of conduct and accountability and where player protection comes first,” Nally said.

Provincial officials said about 70% of Alberta’s online gambling activity had previously taken place through unregulated operators. By opening a legal market with licensed companies, the government hopes more players will choose platforms that follow provincial standards covering responsible gambling, advertising practices, privacy protections and data security.

Officials repeatedly framed the move as a response to an existing reality rather than an effort to expand gambling. Their message was that many Albertans were already placing bets online, but much of that activity happened outside the province’s oversight. The regulated market, they argued, gives players a safer option without changing the fact that online gambling was already widely available.

Major operators move into Alberta’s regulated market

The launch immediately creates one of Canada’s most competitive regulated iGaming markets, with several globally recognized companies available from the first day of operations.

Among the operators entering Alberta are bet365, DraftKings, FanDuel, theScore Bet and Caesars Entertainment. Each combines online sports betting with casino gaming under Alberta’s new regulatory framework.

Caesars said Albertans can now access three separate online brands: Caesars Sportsbook & Casino, Caesars Palace Online Casino and Horseshoe Online Casino. According to the company, each platform targets a different audience. 

Caesars Palace focuses on a premium online casino experience, while Horseshoe Online Casino is aimed at value-conscious players. Caesars Sportsbook combines sports wagering with casino gaming and includes Same Game Parlays, Flex Parlays, live betting, player props and built-in responsible gaming features such as deposit limits, spending limits and cooling-off periods.

Technology suppliers are joining the market as well. Inspired Entertainment announced that its casino content is now live across Alberta’s regulated iGaming ecosystem, allowing licensed operators to offer its games through their platforms.

Alberta has already launched with a wide range of choices that mirrors the competitive environment already established in Ontario. Nally hopes that the variety will give players more incentive to move away from offshore websites that operate outside provincial oversight.

Consumer safeguards drive the new framework

Throughout the announcement, provincial representatives returned to one central theme: the purpose of regulation is consumer protection rather than encouraging more gambling.

Nally said Albertans were already participating in online gambling before the market officially opened. In his view, the province had to decide whether people would continue using websites beyond its control or have access to licensed platforms operating under Alberta’s standards.

“We are not bringing online gambling to Alberta. It is already here,” Nally said during the question-and-answer session. “If you’re not gambling today, please don’t start. But if you do gamble, we want player safety and player responsibility first.”

Licensed operators must provide responsible gambling tools that allow players to set deposit, spending and time limits. They are also required to supply activity statements, monitor for high-risk gambling behaviour and intervene when signs of problematic gambling emerge. Strict identity and age verification is mandatory, and advertising rules prohibit targeting minors and vulnerable individuals.

One feature highlighted by officials is a province-wide self-exclusion program. Through a single online portal, players can voluntarily block themselves from every regulated gambling website in Alberta as well as casinos and racing entertainment centres across the province. Officials described the centralized system as an important lesson drawn from Ontario’s earlier experience and said it creates a simpler process for people seeking help.

Keene said players will also be able to identify approved operators through the Alberta iGaming Corporation logo. The logo is intended to signal that a platform has satisfied provincial requirements for integrity, responsible gambling and regulatory compliance.

Alberta targets offshore gambling with regulated competition

Keene said another important objective is ensuring gambling revenue generated by Albertans remains within the province instead of flowing to offshore companies that are not subject to Alberta’s regulatory system.

Under the framework, 3% of total gross gaming revenue has been set aside for specific purposes. Two percent will go to First Nations, while the remaining 1% will support responsible gambling initiatives, research, mental health services and treatment programs. Revenue beyond those allocations will be directed to Alberta’s general revenue fund.

Nally said the province expects the market to generate about C$76 million during its first full year of operation. Even so, he emphasized that success will be measured less by tax revenue than by the number of players who shift from unregulated websites to licensed operators.

Officials acknowledged they cannot prevent Albertans from accessing offshore gambling sites. Instead, the province believes a competitive legal marketplace with recognizable brands, stronger consumer protections and consistent oversight will persuade more players to choose regulated platforms.

Alberta’s model closely resembles Ontario’s open-market approach while adding several responsible gambling measures, including the centralized self-exclusion system that applies across both online and land-based gambling venues. 

Featured image: Canva

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A new survey from Norway’s Lottery and Foundations Authority suggests suspected efforts to manipulate sporting events are still going largely unreported, even though athletes, coaches and officials are required to report them. The research, carried out in November 2025, gathered responses from people involved in basketball, football, handball and ice hockey to measure awareness of match manipulation, reporting habits and knowledge of integrity rules.

“There have been few match-fixing cases in Norway. The goal of the survey is to increase knowledge about the manipulation of sports competitions,” said Eirik Haugen Tysse, a lawyer with the Norwegian Lottery Authority.

The results show ten respondents said someone had approached them about manipulating a sporting event, while another 27 said they were aware of similar incidents. Even so, only one in five people who encountered or knew about such approaches reported them. Tysse said reporting remains one of the most important tools for preventing match-fixing and stressed that people covered by the regulations are obligated to report suspected attempts.

Knowledge of the rules has improved only slightly since a similar survey in 2023. Participants rated their familiarity with match-manipulation regulations at an average of 2.86 out of five, indicating there is still considerable room for improvement. Tysse said it was encouraging to see some progress but added that organizations responsible for protecting sporting integrity would continue their education efforts.

Norway match-fixing survey finds education and reporting remain the biggest integrity challenges

The survey also found uncertainty about inside information and how it applies to sports betting. Twenty-six respondents said they had been contacted by someone seeking non-public information that could influence betting markets, while many others were unsure whether such an approach had occurred. Nine respondents acknowledged using or sharing inside information, and several others said they did not know whether they had done so.

“This may indicate that some people are uncertain about where the boundary lies,” Tysse said.

The Norwegian findings mirror concerns emerging elsewhere in Europe. In the Netherlands, gambling regulator Kansspelautoriteit reported a new pattern during 2025 after identifying four cases in which professional athletes placed bets on competitions connected to their own sporting careers. Officials warned that such behavior creates conflicts of interest and increases the risk that inside knowledge could influence betting activity.

“The SBIU received four reports about players who placed a bet on their own competition,” the regulator said in its translated report.

The Dutch authority said licensed operators cancelled the wagers, restricted or closed the betting accounts and alerted both regulators and sports federations. It also noted that most suspicious alerts still involved unusual betting patterns rather than confirmed manipulation.

Authorities in both countries argue education remains one of the strongest safeguards. Norway’s regulator said the latest survey highlights the need for better understanding of reporting duties and inside-information rules, while Canada’s Canadian Premier League recently completed a second year of anti-match-fixing training with the International Betting Integrity Association and PFA Canada, focusing on rules, responsibility and reporting as sports betting continues to expand.

Featured image: Canva

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The European Gaming and Betting Association (EGBA) has lodged a formal complaint with the Bank of Lithuania, accusing Lithuanian payment service provider Walletto of processing payments connected to illegal online gambling operators. The trade body wants the central bank to investigate its findings and take tougher action against the financial networks that help unlicensed gambling websites reach customers across Europe.

The complaint follows an EGBA investigation into illegal gambling websites and mobile apps aimed at European consumers. During that work, the association said it carried out test transactions that indicated Walletto’s payment services were linked to deposits on several illegal gambling platforms. EGBA has now asked Lithuania’s financial regulator to examine those findings.

EGBA links payment access to illegal gambling growth in Lithuania

Although the complaint focuses on one payment provider, EGBA says the issue stretches well beyond a single company. According to the association, illegal gambling businesses depend on access to widely used payment methods and established card networks to continue operating outside licensed regulatory systems across the European Union. Without those payment channels, it argues, their ability to attract customers and process deposits would be significantly reduced.

The association also says players using illegal gambling sites can miss out on safeguards required from licensed operators. Those protections include stronger identity verification, safer gambling tools, anti-money laundering controls and confidence that legitimate winnings will be paid. EGBA further warned that weak identity checks may allow minors and self-excluded individuals to access those platforms.

“Payment providers should not be allowed to process transactions for illegal gambling operators. Illegal operators flourish by exploiting legitimate financial channels and the mainstream payment networks that consumers rely on every day,” said Maarten Haijer, Secretary General of EGBA.

“Our aim is simple: to leave them no room to manoeuvre, and to cut off the payment channels they use to reach European consumers.”

Haijer added: “Card schemes also have a crucial role to play in combatting illegal transactions: they are better placed than anyone, as they set the rules for these payment networks and see transaction flows no one else can.”

The latest complaint comes a year after EGBA backed a Court of Justice of the European Union ruling involving Lithuania’s gambling advertising restrictions. The court found that amendments expanding the country’s advertising ban were not properly notified to the European Commission through the Technical Regulation Information System, making them unenforceable against businesses because of a procedural failure.

Following that decision, EGBA repeated that notifying draft gambling rules through the TRIS process is a fundamental safeguard for ensuring national laws comply with EU requirements. The association says effective enforcement depends on both proper legislative procedures and consistent action from financial regulators, payment providers, acquiring banks and card schemes to stop illegal operators from using legitimate payment infrastructure.

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The US Commodity Futures Trading Commission (CFTC) wants a federal judge in New York to hold off on briefing an expected motion to dismiss in its insider trading lawsuit against US Army Special Forces soldier Gannon Ken Van Dyke, while a separate request to pause the civil case is considered. 

In a July 10 letter to the US District Judge Andrew L. Carter Jr., the agency said the US Attorney’s Office for the Southern District of New York has moved to intervene and is asking for a full stay until related criminal proceedings are finished.

According to the commission, granting that stay first would avoid unnecessary litigation over a motion that might not be addressed for some time. The agency said delaying the planned pre-motion conference would promote efficiency if the criminal case takes priority.

CFTC court battle in US soldier insider trading case shifts to procedural dispute

The latest filing follows a July 6 request from Van Dyke’s attorneys asking the court to move quickly toward considering dismissal of the civil complaint. They argued the allegations “have already caused serious negative effects on Van Dyke’s reputation, career, and family” and urged the court to move the case forward “as expeditiously as possible.”

The CFTC sued Van Dyke in April, accusing him of misusing confidential government information obtained during operations targeting former Venezuelan President Nicolás Maduro. Federal prosecutors separately allege the 38-year-old used classified planning information while stationed at Fort Bragg to place roughly $33,000 in Polymarket wagers linked to the operation, later turning those trades into about $409,881 after Maduro was captured. The commission alleges he received more than $436,000 through related event-contract trading.

Van Dyke has signaled he will argue the prediction market contracts do not qualify as swaps under the Commodity Exchange Act. His lawyers contend the contracts were “settled based on the occurrence or non-occurrence of a specified future event with potential financial, economic, or commercial consequences.” They also maintain the case is unprecedented, raises due process concerns, invokes the rule of lenity, and shows the commission exceeded its authority through Regulation 180.1.

The CFTC rejected those arguments. It said the contracts “fall squarely within the unambiguous definition of a swap” under the Commodity Exchange Act and that Regulation 180.1 “was properly promulgated pursuant to an express congressional delegation of authority.”

The agency also said its complaint plausibly alleges the contracts depended on whether a specified event occurred and involved potential financial or commercial consequences, including possible effects on crude oil prices, Venezuelan government bonds and the Venezuelan bolívar. 

It further argued that insider trading enforcement under the Commodity Exchange Act is well established, the civil nature of the lawsuit makes the rule of lenity inapplicable, and Congress expressly authorized the regulation supporting its claims. The court has not yet ruled on the requested stay.

Featured image: Canva

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DraftKings has officially expanded its online poker platform into a shared player network covering Michigan, Pennsylvania, and New Jersey after securing approval from the Michigan Gaming Control Board. The regulator announced the decision Monday (July 13), while the multi-state platform itself went live on July 8, 2026.

In Michigan, DraftKings operates its poker product through the Bay Mills Indian Community. State officials said the operator satisfied every requirement needed to offer interstate online poker following what they described as a comprehensive regulatory review.

DraftKings joins Michigan interstate poker ecosystem

The approval means eligible Michigan players can now compete against opponents in Pennsylvania and New Jersey through one combined player pool instead of being limited to games within state borders. The larger network is expected to increase game availability and support bigger tournament fields by bringing together more participants.

Michigan became a member of the Multi-State Internet Gaming Agreement in 2022. The compact also includes Delaware, Nevada, New Jersey, Pennsylvania, and West Virginia. Before joining the agreement, online poker players located in Michigan could only face other players inside the state.

“This approval reflects the strength of our partnership with Bay Mills Indian Community and the thoroughness of our regulatory process,” MGCB Executive Director Henry Williams said in a statement. “As Michigan’s multistate poker network continues to grow, we remain focused on ensuring every operator meets the same high bar for fairness, security, and player protection.”

The MGCB said approving DraftKings supports its broader effort to expand legal online gaming while maintaining standards for fairness, security, integrity, and responsible gambling. The agency also directed players to additional information about interstate poker, including the Multistate Poker Submission Form available through the regulator.

The latest authorization follows another significant decision earlier this year involving FanDuel. In April, the MGCB approved FanDuel to connect its online poker platform with players in other participating states after reviewing its geolocation systems, data security measures, and responsible gaming controls.

“FanDuel is a well-established operator in the Michigan gaming market,” MGCB Executive Director Henry Williams said.

“Michigan players can have confidence in the integrity of the games they play, backed by the same rigorous oversight the MGCB applies across all licensed gaming activity.”

Although FanDuel received regulatory approval, the company has not announced a launch date for its multi-state poker network in Michigan.

State officials have stressed that Michigan players remain subject to the state’s identity verification, age restrictions, and responsible gaming protections even when competing against players elsewhere. The regulator also continues encouraging residents to treat gambling as entertainment and highlighted available support, including self-exclusion programs, responsible gaming initiatives, and free access to Gamban gambling-blocking software for Michigan residents through its partnership with the provider.

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Bryce Harper says a personalized Cameo video he recorded was never intended to become part of a FanDuel gambling promotion, pushing back after reporting linked the clip to a high-value sportsbook customer. The Philadelphia Phillies star said he believed he was simply creating a holiday greeting for a fan and had no idea it would later appear in marketing connected to gambling.

Responding on social media to reporting by The Philadelphia Inquirer, Harper said he joined Cameo to make personalized paid videos and expected requests on the platform to be genuine fan messages rather than commercial campaigns.

“In response to a recent article in The Philadelphia Inquirer, I want to provide the following facts,” Harper wrote.

Harper explained that in November 2024 a user identified only as “Bryttanni” ordered a personal “holiday video for Terry.” He said Cameo offered a separate category for business requests, and nothing about this order suggested it would be used commercially. According to Harper, the request included a brief script that he read “in good faith.”

“FanDuel then put its own logo on the video and used it as a gambling promotion. I did not know FanDuel would do this, I did not consent to it, and FanDuel had no right to do it,” Harper said.

He also said he would never have recorded the message had he known FanDuel’s intentions or anything about the recipient or “any alleged ‘partnership’ between Cameo and FanDuel.”

“Contrary to the Inquirer’s suggestion, I did not know the Cameo video would be used for a FanDuel VIP promotion, and I have no affiliation with FanDuel whatsoever,” he wrote.

Harper ended his statement by saying his counsel had advised him not to comment further.

Harper FanDuel dispute adds to betting integrity debate

The Massachusetts Gaming Commission said it knows about the matter but emphasized the customer involved is based in Pennsylvania. Spokesperson Thomas Mills said regulators remain focused on a wider examination of sportsbook VIP programs rather than announcing any enforcement action tied to Harper or FanDuel.

“The Commission is aware of the matter. This situation involves a Pennsylvania patron. We maintain a close working relationship with other jurisdictions. The MGC is looking into VIP programs as a whole. This project has been moving along, and an update could be placed on an agenda as early as this fall,” Mills said.

The dispute arrives as gambling’s relationship with professional sports faces growing scrutiny. Senator Richard Blumenthal has asked MLB and other major leagues to detail their sportsbook and prediction-market partnerships, warning that expanding betting ties could affect integrity, athlete safety, addiction risks, and oversight. He has also questioned how leagues monitor suspicious wagering and whether financial incentives influence policy decisions.

Meanwhile, Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz continue fighting federal gambling-related charges. Their defense argues intercepted messages cited by prosecutors referred to legal rooster betting in the Dominican Republic rather than baseball wagering, while both players remain on paid non-disciplinary leave before jury selection was scheduled for May 2026.

ReadWrite has reached out to FanDuel for comment.

Featured image: All-Pro Reels from District of Columbia, USA via WikiCommons / CC BY-SA 2.0

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Amazon and consumers suing the company have asked a federal judge in Washington to give preliminary approval to an unusual class action settlement that would let consumers pursue more than $201 million from app developers instead of collecting directly from Amazon.

The unopposed motion, filed July 9 in the U.S. District Court for the Western District of Washington, would resolve claims that Amazon violated Washington gambling law and the state’s Consumer Protection Act by processing payments for virtual casino chips sold in more than 200 social casino apps on the Amazon Appstore. Amazon denies wrongdoing and liability but is not opposing the requested procedural steps.

“The proposed Settlement converts a difficult and risky litigation into a clear path to financial recovery whereby Settlement Class Members can get back the same portion of spending as in the prior developer settlements—which for Settlement Class Members with the highest spending levels results in life-changing sums.” – Steven Horn et al. vs Amazon

The case began in November 2023 when plaintiff Steven Horn alleged Amazon served as the exclusive payment processor for in-app chip purchases while keeping a 30% commission from every transaction. The complaint argues Amazon shares responsibility with developers because it helped facilitate transactions involving games that allegedly qualify as illegal gambling under Washington law. Amazon disputes those claims and says, among other defenses, that Section 230 of the Communications Decency Act shields it from liability.

An Amazon spokesperson told ReadWrite: “We’re pleased to have reached a settlement in this matter. The resolution allows us to continue offering choice in our Appstore while requiring developers to make changes that improve the customer experience. As has always been true, all apps in our Appstore must comply with applicable laws, and we retain the ability to remove any app at any time.”

Amazon gambling settlement shifts claims to developers

Rather than requiring Amazon to pay the full amount, the parties propose a $201,355,607.75 covenant judgment reflecting 30% of class spending across the social casino apps. Amazon would provide $2.5 million for notice and settlement administration. In exchange, class members would agree not to enforce the judgment against Amazon. Instead, Amazon would transfer its contractual indemnification rights against 32 app developers to a litigation trust, which would pursue those companies and distribute any money recovered to the class.

Plaintiffs told the court the arrangement recognizes Amazon’s distinct legal position because it can raise defenses, including Section 230 immunity, that developers generally cannot. They argue the agreement lets consumers pursue “the same percentage of the Class’s alleged damages” achieved in earlier developer settlements while reducing the uncertainty and delay of continued litigation. Court filings say six previous settlements involving social casino developers have returned more than $650 million to consumers.

The proposal also includes future changes for participating apps on the Amazon Appstore. Developers would have to let players continue after exhausting virtual chips without requiring another purchase. They would also need to provide spending limits, purchase blocking tools, and account suspension or closure options. Amazon would remove apps that fail to comply.

The Washington case arrives as other technology companies continue facing similar legal challenges. Apple, Google, and Meta are defending lawsuits alleging they profited from gambling-style apps on their platforms through payment processing and commissions. Reuters reported that U.S. District Judge Edward Davila rejected their bid to dismiss those claims entirely based on Section 230, allowing the litigation to continue while leaving room for future appeals.

The plaintiffs now want Judge Robert S. Lasnik to certify the settlement class, approve the notice plan, grant preliminary approval, and schedule a final approval hearing. Amazon continues to deny liability but “does not oppose the specific relief sought” in the motion.

UPDATE: Amazon comments added on July 14, 2026.

Featured image: Amazon via Canva

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Kalshi’s attempt to counter a Roosevelt Institute analysis of retail trading losses has triggered a wider public dispute, drawing criticism from gambling industry figures and prediction market observers. What began as a disagreement over research methods has changed into questions about how the company distinguishes professional trading firms from everyday customers when discussing activity on its platform.

The study takes ‘maker’ and ‘taker’ data from the Kalshi API and conflates these terms with ‘professional’ and ‘casual’ users. This is not accurate, and invalidates the claims of the study. – Kalshi

The Roosevelt Institute estimated that ordinary users of Kalshi and Polymarket together lost about $583.5 million through March 2025. Of that total, roughly $244.5 million was attributed to Kalshi. The report also concluded that about 86% of Kalshi traders lost money, while approximately 1% of users collected nearly 80% of overall profits.

Kalshi rejected those conclusions and argued the underlying analysis incorrectly grouped institutional market makers with retail participants. The company said professional market makers and other liquidity providers generate about 97% of trading volume, leaving retail customers responsible for only around 3%. Because of that, Kalshi argued the report assigned institutional losses to ordinary users and produced what it described as an inaccurate estimate of retail losses.

Critics argue Kalshi applies inconsistent customer classifications amid Roosevelt Institute report retail loss debate

That explanation has not persuaded several prominent critics.

Author Steven Seril questioned Kalshi’s claim that institutional market makers should be viewed as peers of regular customers.

“YOU claim that your market makers like SIG are ‘peers.’ YOU claim they are included with ordinary users. Yet, they get benefits & fee discounts. They have algorithms linked directly to your platform which react to market situations at a rate of speed, accuracy, and efficiency,” Seril wrote on X.

Seril argued that firms receiving fee discounts and direct technological integration with the exchange operate under fundamentally different conditions than retail traders.

Former DraftKings executive Jon Aguiar also challenged Kalshi’s position, suggesting the company’s description of market makers shifts depending on the context.

“So just to be clear. When a market maker lays $30,000 to win $5 all $30,005 is handle that shows @Kalshi is bigger and growing fast but when the market maker loses that parlay the loss is not actually a loss because the market maker is not a real customer?” Aguiar wrote.

His remarks echoed a broader criticism that institutional trading is highlighted when discussing platform growth but treated differently when customer losses become the focus.

The discussion has expanded beyond the Roosevelt Institute’s methodology. Sportico assistant editor Dan Bernstein pointed to Kalshi’s expanding parlay product as another way to examine retail outcomes.

“Just parlays, just through April: $117 million,” Bernstein wrote.

He added that “Takers are an almost perfect proxy for retail users on parlays, considering you can’t be a maker in the app,” suggesting parlay bettors provide a clearer measure because app users cannot serve as liquidity providers there.

Other social media users dismissed Kalshi’s response outright.

“Rich coming from a ‘prediction market’ blaming methodology for retail losses,” one X user wrote while sharing Bernstein’s analysis.

Featured image: Kalshi via Canva

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A Ninth Circuit panel spent Friday’s oral argument closely examining whether Kalshi Inc. and Robinhood Markets can keep offering sports event contracts to people located on tribal lands while the underlying lawsuit moves forward. The appeal stems from a district court decision denying a preliminary injunction requested by three California tribes in Blue Lake Rancheria, et al. v. Kalshi, Inc., et al.

Representing Blue Lake Rancheria, Chicken Ranch Rancheria and Picayune Rancheria, attorney Lester Marston argued the contracts become Class III gaming under the Indian Gaming Regulatory Act whenever someone enters into one from tribal land.

“I go on the Blue Lake Rancheria … I see a Kalshi app and I download the app,” he said. Marston then described a user placing money on a sports contract whose payout would depend on the outcome of a game.

“If it walks like a duck, it quacks like a duck,” Marston said.

A judge pointed to what appeared to be little practical difference between Kalshi’s product and a traditional sportsbook, noting Kalshi’s counsel had acknowledged the same transaction would be barred through DraftKings but allowed through Kalshi.

Tribal gaming protections dominate Kalshi Ninth Circuit appeal

Marston said the legal status changes once the activity occurs on tribal land. “The moment they come onto the reservation,” Marston argued, Kalshi is violating federal law and the civil provisions of the Indian Gaming Regulatory Act. He relied on Supreme Court precedent recognizing that conduct lawful elsewhere can become unlawful on a reservation.

He also argued tribal gaming ordinances, tribal-state compacts and the Indian Gaming Regulatory Act work together as a single regulatory system. In his view, ordinances restrict gaming unless specifically authorized, the compacts require compliance with those ordinances, and violating an ordinance therefore breaches the compact. Challenging Kalshi’s reliance on federal commodities regulation, he added, “What Congress giveth, Congress taketh away,” while pointing to savings clauses he said preserve authority under other federal statutes.

Kalshi attorney Grant Mainland urged the panel to decide the appeal on narrower grounds. He argued the tribes cannot sue under the provision they cited because it authorizes claims only for gaming conducted in violation of a tribal-state compact. “There is no language in any compact or in any secretarial procedures that Kalshi could have violated here,” Mainland told the panel.

Mainland also maintained tribal ordinances are legally separate from the compacts and said the tribes never sought preliminary relief on the ordinance claim. When asked directly whether Kalshi’s products qualify as Class III gaming, he answered, “That is our position,” Mainland said when a judge asked him directly. “Not Class III gaming.”

The judges repeatedly questioned how Kalshi’s contracts differ in practice from sportsbook wagers. Mainland acknowledged there could be “some similarity” but argued designated contract markets and sportsbooks operate under different legal regimes.

Robinhood attorney Anthony Ryan focused on the injunction standard rather than the statutory dispute. “There’s no showing whatsoever,” Ryan argued, saying the tribes failed to demonstrate irreparable harm or customer diversion. The panel took the case under submission without issuing a ruling.

Featured image: Sanfranman59 via WikiCommons / CC BY-SA 4.0

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Arizona gambling regulators have expanded their enforcement campaign against unlicensed online gambling operators, issuing cease-and-desist orders to five platforms after investigations the state says uncovered illegal gambling activity and access by underage users.

The Arizona Department of Gaming (ADG) announced enforcement actions against BetOpenly, Bookmaker, Club WPT Online Poker, Kutt Inc., and Raffle Creator. According to the department, each order alleges conduct that could support felony charges for promotion of gambling, illegal control of an enterprise, and money laundering.

The latest enforcement follows a series of similar actions by the ADG in 2025. In June, the regulator issued multiple cease-and-desist orders to unlicensed operators it said were illegally targeting Arizona residents with unauthorized gambling products, including slot-style casino games, sweepstakes models, sports betting, horse race wagering, and peer-to-peer betting exchanges. In August, the department also ordered Fliff Online Gambling, Thrillzz Mobile Gambling, BettySweeps Casino, and Pulsz Casino to stop offering gambling services in the state, alleging they were providing access to illegal online gambling platforms, including sweepstakes-style casino products and sports wagering.

“Arizona is taking decisive action against illegal gambling operators that put Arizonans at risk,” said Jackie Johnson, Department Director. 

“Our top priority is protecting Arizonans and I’m grateful for the efforts of our intelligence unit led by Chief Law Enforcement Officer Doug Jensen to do just that. Through these cease-and-desist orders we are putting operators on notice: their conduct runs contrary to Arizona law and they must stop promoting illegal gambling.”

The department said the current enforcement actions are part of broader public safety efforts tied to Arizona law, which prohibits gambling unless it is specifically authorized and sets the legal gambling age at 21.

Arizona intensifies action against illegal gambling operators

According to the department, BetOpenly operated peer-to-peer sports betting and casino games while benefiting from a commission structure that investigators say violates Arizona law. Regulators also allege the platform offered event wagering and daily fantasy sports contests without the required state licenses and made those activities available to underage Arizona users.

Bookmaker allegedly accepted wagers on horse racing, sports, and casino games without holding the licenses required under Arizona law. The department noted that online casino games remain illegal in Arizona.

Club WPT Online Poker is accused of allowing Arizona residents under 21 to participate in pay-to-play online poker tournaments for prizes while using what the department described as deceptive “no purchase necessary” language. The agency said online poker is not legal in Arizona.

The department said Kutt Inc. operated a platform that allowed users in Arizona to deposit money and wager on sports, politics, pop culture, and casino-style games. Regulators also argued that Arizona’s legal definition of social gambling does not permit a third party to profit from the activity.

Investigators also alleged that Raffle Creator enabled raffles that did not qualify for Arizona’s nonprofit raffle exception and allowed people younger than 21 to purchase tickets for prize drawings.

The cease-and-desist orders direct all five operators to immediately stop gambling operations in Arizona, whether online, through mobile applications, or by other means, and prohibit future illegal gambling activity in the state. The department said future enforcement could include criminal charges or civil actions against the companies, their principals, and employees, along with restitution claims from consumers and forfeiture of funds allegedly obtained through illegal conduct.

The ADG has repeatedly warned that many gambling platforms accessible in Arizona are neither licensed nor regulated, exposing users to risks including fraud, identity theft, and financial losses. The regulator also notes it cannot assist with disputes involving illegal or unregulated operators.

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Today in prediction market news, we’re tracking the biggest stories as they unfold, including a wave of new lawsuits facing Kalshi, Google’s decision to ban prediction market extensions from its stores, the CFTC’s approval of Optex Markets as a new prediction market exchange, Polymarket’s reported bid to secure a U.S. license for margin trading, fresh debate over insider trading and employee betting policies, and the latest state and federal regulatory developments. Follow along for live updates on prediction markets, regulation, sports event trading, crypto, and the companies shaping the industry’s next chapter.

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Arizona Governor Katie Hobbs has signed an executive order prohibiting executive branch employees from using nonpublic government information to profit through prediction markets, creating new ethics rules that also classify certain information as confidential when it could be be used to place wagers.

The order, signed July 9 as Executive Order 2026-02, prohibits state executive branch employees from using or disclosing nonpublic information obtained through their public service to earn money, avoid financial losses, or help another person or organization profit through participation in prediction markets. Employees who violate the policy may face dismissal or other disciplinary action and could also be referred to law enforcement, according to the executive order.

Governor Hobbs announced the order Thursday (July 9), saying it is intended to strengthen ethical standards as prediction markets continue to expand in popularity and scope.

“Arizonans deserve a state government that works for them, not one where insiders exploit public service for their own gain,” said Governor Katie Hobbs in an accompanying statement. 

“I’m proud to set clear, commonsense ethical standards on prediction markets to hold our government accountable. Public service is a privilege, and we will not tolerate anybody abusing that privilege to line their own pockets.”

The executive order points to existing Arizona law barring public officials and employees from using or disclosing confidential, nonpublic information. It says the proliferation of prediction markets—which allow users to trade contracts tied to the outcomes of elections, government actions, military operations, weather events, wildfires, sports and other real-world events—has created new opportunities for insiders to misuse privileged information for financial gain. According to the order, public confidence is damaged when government employees use information obtained through their positions for personal profit.

Growing prediction market platforms prompt stronger insider trading safeguards in Arizona

The action follows recent media reports and federal indictments alleging that government employees outside Arizona used confidential federal information to win millions of dollars through prediction market wagers tied to government actions, including military operations involving Venezuela and Iran. The executive order states that such conduct could have endangered U.S. service members and underscores the need for clearer safeguards at the state level.

Beyond banning insider trading on prediction markets, the order formally designates as confidential any nonpublic information obtained by Arizona executive branch employees during public service that could reasonably be used to generate profits or avoid losses through prediction market transactions. The governor’s office said the additional designation is intended to reinforce public trust in state government.

Arizona is not alone in addressing the issue. Earlier this year, New York Gov. Kathy Hochul issued a similar policy prohibiting state employees from using confidential government information to trade on prediction markets, reflecting growing concern among state officials that expanding event-based trading platforms create new ethics challenges for public servants.

The Arizona order also comes as prediction markets face continued legal scrutiny. In a recent federal court decision, a judge blocked Arizona regulators from taking enforcement action against prediction market operator Kalshi while litigation over the company’s event contracts continues. The ruling allowed Kalshi to continue offering its federally regulated contracts in Arizona, highlighting the evolving legal landscape surrounding prediction markets even as states adopt stricter ethics policies for government employees.

The new policy applies to employees and officers in the Governor’s Office, executive departments, agencies, offices and most state boards and commissions. Limited exceptions include agencies headed by separately elected officials, the Arizona Corporation Commission and boards or commissions created by ballot measure after the November 1998 general election. The order also encourages other statewide elected officials, independent boards and commissions, as well as the judicial and legislative branches, to adopt similar standards. It took effect immediately upon the governor’s signature and will remain in force until repealed, replaced or rescinded by a future executive order.

Featured image: Gage Skidmore via Flickr / CC BY-SA 2.0

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More than 5,800 people have been arrested and approximately $293 million in illicit assets have been intercepted or frozen after Interpol led a global crackdown on cyber-enabled financial crime, including illegal online gambling, business email compromise, investment fraud, romance scams and the money laundering networks that help criminal groups move stolen funds.

The operation, conducted between January 15 and April 30, brought together authorities from 97 countries and territories to crack down on organized fraud networks involved in business email compromise, investment fraud, romance scams, impersonation scams, illegal online gambling, and the money laundering schemes used to move criminal proceeds.

According to Interpol, investigators analyzed 152,808 cases, solved 23,715 investigations, identified more than 15,600 suspects and more than 142,000 victims, blocked 31,014 bank accounts, and issued 99 Interpol Notices and Diffusions during the operation.

The latest operation follows a series of coordinated international enforcement actions by Interpol targeting cyber-enabled crime. Earlier this year, Operation Red Card led to the arrest of 306 suspects across seven African countries after authorities dismantled criminal networks involved in online casino scams, mobile fraud and digital investment schemes. That operation, conducted between November 2024 and February 2025 through Interpol’s African Joint Operation against Cybercrime (AFJOC), also resulted in the seizure of more than 1,800 electronic devices and identified more than 5,000 victims.

Authorities reported a series of major cases across participating countries during the latest global operation.

In Eswatini, police arrested 82 suspects after dismantling a criminal network linked to illegal online gambling, money laundering and impersonation scams. Investigators also seized hundreds of electronic devices and uncovered what authorities described as a fake Brazilian police station used to deceive victims as part of the scheme.

In Thailand, investigators uncovered a cryptocurrency-based money laundering operation connected to romance scams. Authorities said one suspect’s digital wallet processed more than $122.5 million over a 10-month period.

Law enforcement agencies in Singapore and Oman worked together to stop a fraudulent transfer worth $6.6 million after uncovering a business email compromise scheme, while police in Macao, China, prevented a victim from sending nearly $372,000 after identifying an active impersonation scam during a public awareness campaign.

Illegal gambling and fraud networks disrupted across continents by Interpol

Operation Red Card also exposed the regional impact of cybercrime across Africa. In Nigeria, authorities arrested 130 suspects, including 113 foreign nationals, accused of operating online casino and fake investment scams that allegedly converted criminal proceeds into cryptocurrency. Nigerian investigators also raised concerns that some people working in the scam centers may have been trafficked or coerced. In Rwanda, police arrested 45 suspects linked to social engineering scams involving fake lottery winnings, telecom impersonation and emergency payment requests, recovering more than $100,000. Authorities in South Africa dismantled a SIM box fraud network, while police in Zambia arrested 14 suspects connected to malicious messaging-link scams.

Interpol said the operation reflects the increasingly international nature of financial crime, with criminal organizations using digital platforms, cryptocurrency and cross-border money laundering networks to target victims and quickly move stolen funds.

“Social engineering scams continue to pose a significant threat to our society. Criminal syndicates exploit human psychology to manipulate their targets, and no nation can stay safe unless all countries are equipped and committed to jointly fighting back,” said Tomonobu Kaya, Director of the Interpol Financial Crime and Anti-Corruption Centre.

“INTERPOL is dedicated to supporting member countries in building a comprehensive, coordinated strategy to tackle cyber-enabled financial crimes, organized criminal networks and the money laundering that fuels them.”

Separately, Interpol Director of Cybercrime Neal Jetton said Operation Red Card demonstrated “the power of international cooperation in combating cybercrime, which knows no borders and can have devastating effects on individuals and communities.”

Interpol said coordinated intelligence sharing and enforcement efforts enabled participating countries to identify suspects, freeze criminal assets, dismantle fraud operations and prevent additional financial losses. The operation also targeted the financial infrastructure behind online scams, focusing on the accounts, cryptocurrency transactions and laundering networks that allow organized criminal groups to profit from fraud.

The organization said the latest results, together with previous initiatives such as Operation Red Card, demonstrate the impact of coordinated international action against cyber-enabled financial crime, with thousands of arrests, millions of dollars in illicit assets intercepted, and organized fraud networks disrupted across multiple regions.

Featured image: Interpol via press release

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The lawsuit, filed in the U.S. District Court for the Southern District of New York by plaintiffs Adrian Vazquez, Alexander Foley and Nicholas Ross, claims Kalshi allowed outside companies to intercept users’ communications and platform activity without their knowledge or consent. The plaintiffs seek to represent all individuals who used Kalshi’s digital platforms and whose communications, personally identifiable information, or online activity was allegedly intercepted or disclosed to third parties.

According to the complaint, Kalshi operates an online marketplace where users trade binary event contracts tied to real-world outcomes. The filing says those contracts can involve subjects ranging from entertainment to politics and international affairs, and argues that a user’s activity on the platform can reveal “the events the user considered important, the outcomes the user predicted, the amount of money the user was willing to risk, the user’s confidence in particular outcomes, and the user’s financial gains or losses.”

The plaintiffs contend that users provide extensive personal and financial information to create and fund accounts, including identity verification information, and reasonably expect that information and their trading activity to remain private. The complaint argues that because Kalshi involves wagering-like activity, users have “a heightened privacy interest in keeping their Kalshi activity confidential.”

Complaint says Kalshi shared trading-related information with outside companies

The complaint alleges Kalshi embedded third-party scripts, pixels and tracking technologies throughout its digital platforms, allowing companies including Google, TikTok, LinkedIn and others to monitor users as they browsed markets, viewed event contracts and placed trades.

“Through these tracking technologies, third parties such as Google, TikTok, LinkedIn, and others were able to monitor users as they interacted with Kalshi’s Digital Platforms,” the complaint states. “This monitoring included, upon information and belief, users’ browsing activity, pages viewed, event contracts reviewed, account interactions, and trades or attempted trades.”

The lawsuit further alleges that Kalshi “employs over 60 different third-party trackers on its website,” including technologies associated with Google, Meta, HypeLab and Rokt, and says four trackers captured information during the process of placing trades. According to the complaint, those trackers transmitted information including the market selected, whether users bought or sold “Yes” or “No” contracts, order information, device identifiers, browser information and approximate location to third parties.

It includes screenshots that it says show data being transmitted to Amplitude, LinkedIn, TikTok and AppLovin during the trade submission process. The plaintiffs allege the shared information included trading-related details and user identifiers.

The complaint alleges Kalshi benefited commercially from the practice, stating the company “utilized data from trackers to improve its advertising and marketing campaigns, reduce customer-acquisition costs, increase trading activity, generate revenue, and to receive cash payments from the third parties receiving the data.”

The lawsuit also challenges Kalshi’s user consent process. According to the complaint, users were never required to affirmatively accept the company’s legal terms or privacy policy before creating an account. Instead, the registration page stated only that users acknowledged and agreed to Kalshi’s legal terms while the company merely “recommend[ed] reviewing” them. The complaint further alleges the hyperlink to those terms lacked common visual cues, such as underlining or contrasting colors, and users could complete registration without reading any of the documents.

The privacy lawsuit adds to a growing list of legal challenges facing Kalshi. In recent months, the company has been sued in multiple states over allegations that its event contracts tied to sporting events amount to illegal, unlicensed sports betting rather than lawful prediction markets.

In Oregon, plaintiff Ian Reynolds filed a proposed class action alleging Kalshi and related entities operate “an illegal online gambling enterprise” under state law. The complaint argues that contracts tied to sports outcomes function as prohibited wagers and seeks damages, restitution, declaratory relief and a jury trial on behalf of a proposed class of consumers who allegedly lost money trading on the platform.

A separate proposed class action filed in Alabama similarly argues that Kalshi’s sports event contracts violate the state’s strict anti-gambling laws. The plaintiffs contend that, despite being structured as federally regulated event contracts, the products operate like traditional sports wagers that should be subject to state gambling restrictions.

Kalshi has consistently disputed those allegations, maintaining that its products are financial derivatives regulated by the Commodity Futures Trading Commission (CFTC). As a CFTC-designated contract market, the company argues that federal commodities law—not state gambling law—governs its exchange. Some of the gambling-related lawsuits also challenge Kalshi’s affiliated market makers, alleging they effectively take the opposite side of customer trades, while Kalshi has described those claims as misunderstandings of how regulated exchanges operate.

The dispute has also drawn regulatory scrutiny from several states, including Massachusetts, Nevada and Washington, where authorities have challenged or restricted sports event contracts offered by prediction market operators.

Kalshi has not yet filed a response to the privacy complaint.

Featured image: Kalshi / Canva

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Today in prediction market news, we’re following the biggest stories as they develop, including Kalshi’s loss in its bid for a preliminary injunction in New York, Citadel Sports Group’s reported push into the prediction markets industry, Prospect Markets’ U.S. launch through a Crypto.com-backed partnership, growing state-level battles over prediction market regulation and taxation, and new analyst research highlighting the sector’s record momentum in June. Follow along for live updates on prediction markets, regulation, sports event trading, crypto, and the companies driving the industry’s next phase.

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Australian mixed martial arts (MMA) fighter Jamie Mullarkey has been formally warned by the Australian Communications and Media Authority (ACMA) after an investigation found he promoted an illegal offshore gambling service through sponsored posts on his Instagram account.

The enforcement action follows an ACMA investigation that concluded Mullarkey breached Australia’s online gambling laws in 2025 by promoting the offshore gambling operator Leon on social media. According to the regulator, his Instagram profile included references to a sponsorship arrangement with the service, a link directing followers to the gambling website and promotional posts using branded hashtags.

Australian law prohibits promoting illegal online gambling services, including through social media posts, livestreams, hyperlinks to unlicensed gambling websites and promotional giveaways connected to illegal operators.

MMA fighter’s illegal gambling promotion triggers first ACMA enforcement action

The investigation began on Nov. 11, 2025, after a media inquiry raised concerns about possible illegal advertising of offshore gambling services during a mixed martial arts event. While the ACMA found no illegal advertising in the event broadcast itself, investigators traced the inquiry to Mullarkey’s Instagram account, where they identified promotional content for Leon.

According to the investigation report, Mullarkey entered into a Talent Partnership Agreement with Moonlite N.V., trading as Leon, in April 2025. Under the agreement, he was contracted to provide endorsement and promotional services for Leon’s online sportsbook through content published on his personal Instagram account until around August 2025.

The ACMA found the account featured Leon branding, hashtags including #LeonGames, #LeonMMA and #FreeBet, references to free bets and a hyperlink directing users to the gambling service. Investigators concluded the content promoted a prohibited and unlicensed interactive gambling service while helping Australian consumers access the platform.

ACMA member Carolyn Lidgerwood said the case should serve as a warning to influencers and athletes with large online audiences.

“Athletes and social media personalities with large online followings can have significant influence over their audiences and can encourage the use of illegal gambling services,” Lidgerwood said.

“This is the first enforcement action we have taken against an influencer for breaching online gambling rules, and it should serve as a warning to others.

“In this case the ACMA issued a formal warning considering the specific circumstances of the matter. This included that Mr Mullarkey ended the sponsorship arrangement promptly, cooperated with the investigation and quickly removed the material. Mr Mullarkey also accepted responsibility for his conduct and expressed genuine remorse.

“However, all influencers need to be aware that promoting illegal online gambling sites is against the law and can result in significant penalties.”

The formal warning was issued under Section 64A of the Interactive Gambling Act 2001 after the ACMA determined Mullarkey had breached provisions relating to prohibited and unlicensed interactive gambling services and the publication of illegal gambling advertisements.

The regulator said individuals who promote or publicize illegal online gambling services can face civil penalties of up to A$59,400 ($41,143). Those who facilitate access to illegal gambling services, including by sharing hyperlinks or directing users to those platforms, can face penalties of up to A$2.475 million ($1.714 million).

The case comes as Australian regulators intensify scrutiny of gambling promotion on social media. In 2025, the ACMA warned influencers that promoting unlicensed online casinos, in-play sports betting, casino-style games or other prohibited gambling services could expose them to substantial penalties. The regulator also cautioned that livestreams, demonstrations of illegal gambling platforms and giveaways linked to offshore operators may breach the law, while warning that younger Australians who spend significant time online are particularly vulnerable to harm from unlicensed gambling services.

State regulators are also increasing enforcement. Liquor & Gaming NSW has made influencer marketing a key compliance priority for 2026, warning betting operators they remain responsible for how their products are promoted through affiliates, content creators and social media personalities. The agency has flagged particular concern over influencer content that normalises gambling or reaches large youth audiences, saying operators should carefully manage partnership arrangements or risk enforcement action.

“The ACMA will use its full suite of regulatory tools, including these substantial civil penalties, where influencers promote or facilitate access to illegal gambling services,” Lidgerwood said.

Featured image: Jamie Mullarkey via Instagram

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Two men are facing charges after Nassau County police said officers found illegal electronic gambling machines during a quality-of-life enforcement operation in Roosevelt.

The inspections took place Monday (July 6) when members of the Nassau County Police Department’s Strategic Response Team visited businesses as part of a wider effort focused on community enforcement and licensed establishments.

Investigators began at Good Food & Shake, located at 90 Nassau Road. During the inspection, officers said they discovered two illegal electronic gambling machines inside the business. Authorities seized both machines and recovered $1,276 in cash.

Police charged Erick Hernandez Martinez, 33, of Freeport, with possession of gambling devices, unlicensed public assembly, disorderly premise, and operating without a valid New York State liquor license.

Hernandez Martinez was issued an appearance ticket and released. He is scheduled to appear in First District Court on July 20.

Second inspection in Roosevelt uncovers additional hidden gambling machines

The operation continued at Stop & Go Food Market at 135 Babylon Turnpike, where investigators said they located four illegal electronic gambling machines that had been hidden inside the business.

Officers confiscated the machines and recovered another $390 in cash during the inspection, according to police.

Rafael Rodriguez, 63, of Uniondale, was charged with possession of gambling devices, unlicensed public assembly, and disorderly premise.

Like the first defendant, Rodriguez received an appearance ticket and was released. He is scheduled to appear in First District Court on July 20.

Police said both inspections were conducted under the department’s ongoing quality-of-life initiative in Roosevelt, which targets businesses and licensed premises for compliance with state and local laws.

By the end of the operation, officers had seized six illegal electronic gambling machines from the two locations. Authorities also recovered a combined total of more than $1,600 in cash connected to the inspections.

The department said the enforcement effort was part of a continuing initiative aimed at addressing quality-of-life concerns throughout the Roosevelt community. Police have not announced whether additional inspections or enforcement actions are planned, and no further information about the investigation was released.

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