This week’s gambling news highlights several significant developments, including Kalshi’s legal challenges, Minnesota's emerging role in prediction markets, and various state bills awaiting gubernatorial approval.
Kalshi is currently navigating a pivotal moment in its lawsuit against Iowa, with a deadline to submit a motion for a preliminary injunction set for May 11. Iowa is expected to respond by July 10, while Kalshi’s rebuttal is due by July 31.
Meanwhile, Minnesota is becoming a focal point in the ongoing legal discourse surrounding prediction markets. Reports indicate that CFTC Chair Mike Selig is keeping an eye on Minnesota and other states that are considering legislation to either ban or regulate these markets. Interestingly, previous lawsuits from the CFTC have primarily targeted states governed by Democrats, while Republican-led states like Utah, Iowa, and Tennessee have not faced similar federal scrutiny.
In addition to Kalshi's case, the Ninth Circuit Court of Appeals is anticipated to make a ruling on a consolidated case involving Kalshi, Robinhood, and Crypto.com against Nevada.
In terms of legislative developments, Minnesota is reviewing two prediction market bills. One of them, SF 4760, has been approved by a conference committee and is set for final votes in both legislative chambers. Another bill, SF 4511, which seeks to restrict certain prediction market contracts related to real-world events, is awaiting action in the House.
Tennessee has also made strides with SB 1992, which targets manipulation in prediction markets and has passed both legislative chambers, now awaiting Governor Bill Lee's signature.
Additionally, Pennsylvania has introduced HB 2497, which aims to establish a regulatory framework for event outcome prediction wagering, placing responsibilities on the Pennsylvania Gaming Control Board and the Department of Revenue.
On the sweepstakes front, several states are actively considering bills. Tennessee’s SB 2136 and Oklahoma’s SB 1589 focus on the dual-currency payment systems utilized by sweepstakes casinos. Iowa’s SF 2289 and Louisiana’s HB 53 aim to enhance regulatory powers over unregulated gambling operations.
In Louisiana, HB 883, which targets dual-currency sweepstakes platforms, has passed the House and is awaiting a Senate vote. Colorado has also seen progress with two sports betting bills, SB 163 and SB 131, recently passed by the legislature.