Prediction Markets, State Bills Lead Gambling Stories to Watch This Week

Prediction market litigation and state legislative deadlines lead the gambling stories to watch this week, with several court, Capitol Hill, and governor’s desk developments expected in the coming days.

Here are the gambling stories to watch this week.

Prediction Markets

Tennessee’s Opening Brief Due in Sixth Circuit Kalshi Appeal

Tennessee’s opening brief in its Sixth Circuit appeal against Kalshi is due May 18.

The state filed the appeal in March, after a lower court ruling in February sided with Kalshi and blocked Tennessee regulators from taking enforcement action against Kalshi’s sports-event contracts.

Notably, the Sixth Circuit denied Kalshi’s request for an injunction pending appeal in its case against Ohio last month, with the court signaling skepticism toward some of Kalshi’s arguments, including federal preemption.

What to watch

How heavily Tennessee leans on recent rulings from other states.

Senate Commerce Subcommittee to Hold Sports Betting Integrity Hearing

The Senate Commerce, Science, and Transportation Committee will hold a subcommittee meeting, titled “No Sure Bets: Protecting Sports Integrity in America,” on May 20. It will examine sports betting and gaming integrity amid growing concerns around match manipulation, insider information, and the rise of prediction markets.

According to the committee’s website, the hearing will explore whether the current regulatory framework is sufficient to protect the integrity of sports as traditional sportsbooks and prediction market platforms continue expanding across the U.S.

Among the witnesses are American Gaming Association (AGA) President and CEO Bill Miller, Tennessee Sports Wagering Council Executive Director Mary Beth Thomas, Integrity Compliance 360 CEO Scott Sadin, and former Congressman Patrick McHenry, who now serves as a senior advisor to the Coalition for Prediction Markets.

What to watch

• Debate on insider trading and integrity concerns around prediction markets
• The broader dispute between state gambling regulators and the Commodity Futures Trading Commission (CFTC).
• The dynamic between the AGA and the Coalition for Prediction Markets, given the AGA’s growing campaign against sports event contracts.

New York Consolidation Fight

Last week, Kalshi asked a federal judge to consolidate the CFTC’s lawsuit against New York and the state’s actions against Coinbase and Gemini before one federal judge.

New York immediately pushed back, arguing that Kalshi is attempting to sidestep procedural rulings from another federal judge.

What to watch

Whether the court agrees to consolidate the cases.

CFTC’s Next Move

The CFTC last week filed an amicus brief supporting Kalshi in Ohio, continuing its increasingly aggressive defense of prediction markets against state enforcement actions.

Some recent reports suggested that the agency is monitoring developments and could take action against additional states, including Minnesota, where lawmakers passed prediction market language in SF4760, a public safety omnibus bill.

Another state to watch is Washington, where a federal judge moved the state’s lawsuit against Kalshi back to state court. The prediction market operator has filed a motion seeking a stay in both the federal court and the Ninth Circuit.

What to watch

Whether the CFTC moves against Minnesota, Washington, or other states.

Legislation: Deadlines and Gubernatorial Decisions

Minnesota and Alaska Face Legislative Deadline

Minnesota lawmakers are approaching the May 18 adjournment target after passing multiple gambling-related measures in recent days.

In addition to SF 4760, lawmakers also passed HF4240, an elections bill that includes provisions prohibiting elected officials and candidates from betting on election-related prediction markets. However, the state’s sweepstakes casino bill, SF 4474, appears stalled in the House despite previously passing the Senate.

Meanwhile, Alaska’s legislative session adjourns on May 20. While no major gambling-related bills have passed this session, lawmakers are still advancing SB 170, a bill that would modernize the state’s charitable gaming framework, including bingo, pull-tabs, and electronic pull-tab systems.

SB 170 passed in the Senate earlier and is scheduled for a House committee hearing on May 18, giving it a limited time to reach the House floor and potentially pass.

What to watch

• Whether lawmakers revive SF 4474 before adjournment, and Gov. Tim Walz’s decisions on the prediction market-related measures.
• Whether Alaska lawmakers can get SB 170 across the finish line on time.

Gubernatorial Decisions Await in Tennessee, Louisiana

Tennessee and Louisiana lawmakers have formally sent multiple bills targeting unregulated gambling and prediction markets to the governor’s desk.

In Tennessee, Gov. Bill Lee is expected to decide on SB 213 and SB 1992. The former bans “online sweepstakes games” that use dual-currency systems, while SB 1992 criminalizes manipulation of prediction markets and insider trading-related conduct.

In Louisiana, lawmakers advanced two separate gambling-related measures this session. HB 883 directly targets illegal online gambling and sweepstakes-style operations, while HB 53 would add certain gambling offenses to the state’s racketeering framework.

What to watch

Gubernatorial decisions, including potential vetoes on any bill. Last year, Louisiana Gov. Jeff Landry vetoed a bill related to sweeps.

Financial: Bally’s Annual Shareholder Meeting, Q1

Bally’s annual shareholder meeting is scheduled for May 19 at 2 p.m. ET. Shareholders are expected to vote on items such as director nominees, executive compensation matters, and amendments to the company’s equity incentive plan.

The company could also release its Q1 2026 earnings this week, although Bally’s typically does not announce quarterly earnings dates far in advance.

Last week, Bally’s filed a Form 12b-25 notifying investors it would delay filing its Q1 2026 Form 10-Q. The company said it needed additional time to complete its financial statement review. However, it stated it expected to file within the five-day extension period permitted under SEC rules.

What to watch

• Management commentary during the shareholder meeting around Bally’s operating outlook, interactive strategy, and ongoing development projects.
• The timing of Bally’s delayed filing and any additional disclosures around the company’s financial performance or strategic outlook.