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State of Play’s TL;DR
- A coalition representing major US prediction market companies plans to ask auditors and inspectors general in 20 states to review alleged coordination between state gaming boards and the American Gaming Association.
- The coalition wants state officials to examine efforts to restrict prediction market offerings and determine whether other, potentially undisclosed, entities were involved.
A coalition of prediction market firms, which includes Kalshi and Crypto.com, says it will press auditors and inspectors general in 20 states to investigate what it describes as unfair coordination between state gaming boards and the American Gaming Association.
Arizona, Connecticut, and Kentucky were specifically named by the coalition.
At the center of the dispute are prediction market event contracts and how much they mirror sports betting.
The coalition’s stated goal is to review how state-level restrictions may have been shaped and whether any outside involvement was not fully disclosed. That makes this more than a niche fight between one trade group and a few companies. It puts state gaming boards, industry lobbying, and the regulatory treatment of prediction markets into the same spotlight – across multiple jurisdictions at once.
A new layer
This is a regulatory power issue as much as a product story. Prediction markets sit adjacent to the broader online gambling ecosystem, and a 20-state pressure campaign suggests the debate over event contracts is becoming national in scope.
For operators, the immediate issue is the possibility of added scrutiny around how restrictions on prediction market offerings were pursued. If auditors or inspectors general take up the requests, that could intensify pressure on both regulators and industry groups involved in the dispute.
For bettors, the practical takeaway is that the rules around these products may remain unsettled. It adds to the growing clash between prediction market companies and established gambling interests, which could influence how states classify, regulate, or challenge these offerings going forward.
Based on reporting by Gillian R. Brassil for Bloomberg Law.
