The Gambling Wire: NFL Urges Supreme Court to Review Kalshi Case; Seminole Tribe Sues DraftKings

The NFL, American Gaming Association (AGA), 145 tribal governments and organizations, and two former federal officials urged the Supreme Court on Thursday to take up New Jersey’s case against Kalshi, adding to growing calls for a ruling on whether states can regulate sports prediction markets.

Elsewhere, the Seminole Tribe of Florida sued DraftKings, an investigation linked Kalshi’s $2 million donation to turmoil at the National Council on Problem Gambling (NCPG), and new reporting examined the CFTC’s enforcement capacity.

The Big Story: NFL, Gaming Industry Push Supreme Court to Take Kalshi Case

The NFL became the latest organization to urge the Supreme Court to hear New Jersey’s challenge to Kalshi. The league raised concerns about game integrity and consumer safeguards.

In an Oct. 8 amicus brief, the NFL questioned the CFTC’s enforcement capacity, comparing the agency’s staffing to that of some state gaming regulators, even though the agency has significantly broader responsibilities overseeing all types of derivatives.

The league warned about contracts susceptible to manipulation, including those involving injuries, players or officials. It also noted that prediction markets allow trading at age 18, compared with the minimum age of 21 for sports betting in many states. The NFL said that the CFTC and operators have ignored its requests to adopt safeguards already used by state-regulated sportsbooks.

Meanwhile, the AGA argued that prediction markets circumvent state taxation, consumer protections and gaming integrity requirements.

Additionally, the 145 tribal organizations argued that sports event contracts threaten tribal sovereignty, gaming exclusivity and revenue supporting government services. The coalition also argued that the Commodity Exchange Act does not override the Indian Gaming Regulatory Act (IGRA).

The latest filings follow similar briefs from 39 states and Washington, D.C., the National Council of Legislators from Gaming States, the Cabazon Band of Cahuilla Indians and several anti-gambling organizations.

The Supreme Court has not agreed to hear the case. Kalshi’s response is due Nov. 9.

Dodd, Gensler Challenge Kalshi’s Interpretation of Dodd-Frank

Former Sen. Christopher Dodd, a key architect of Dodd-Frank, and former CFTC Chair Gary Gensler separately urged the Supreme Court to review the dispute.

Dodd argued that Congress enacted Dodd-Frank to address the financial crisis, not to transfer sports betting oversight from states to the CFTC.

Congress did not set out to authorize nationwide sports betting through derivatives markets or displace decades of state and tribal primacy over gaming regulation,” his brief states.

“Traditional derivatives manage preexisting financial or commercial risks. A sports wager creates a risk that did not previously exist.”

Gensler similarly rejected the classification of sports wagers as swaps, citing his involvement in implementing Dodd-Frank.

The answer—from Amicus as someone who was there—is that Congress did not transfer jurisdiction over sports betting from the States to the CFTC,” his brief states.

“Congress did not include sports-betting contracts within the statutory definition of swap.”

The Daily Wire

Seminole Tribe Sues DraftKings, CEO Robins Over Florida Prediction Markets

The Seminole Tribe of Florida filed a lawsuit Thursday against DraftKings, CEO Jason Robins and DraftKings Predictions. The suit alleges that the company’s Pick6 product and sports-event contracts operate as unlicensed sportsbooks in Florida.

The Tribe argues that the products replicate traditional sports wagering while circumventing the state’s 2021 gaming compact, which gives the Tribe exclusive rights to offer regulated sports betting.

There is no distinction—visual, functional, or experiential—between a sports bet powered by DraftKings Predictions in the Super App sportsbook and a wager placed on the Super App sportsbook in a State where DraftKings is licensed to operate.

It also accuses DraftKings of using prediction markets to reach customers in states where the company cannot operate a licensed sportsbook, citing Robins’s previous statements about its strategy.

The complaint describes Pick6 as “a gambling product that illegally offers player-proposition bets that are reserved exclusively to the Tribe.”

The Tribe is seeking an injunction, disgorgement of profits and legal costs.

CFTC Faces Staffing Probe Amid Claims of Weakened Enforcement

The Government Accountability Office (GAO) is preparing to investigate staffing cuts at the CFTC, as former agency lawyers allege that enforcement was deliberately scaled back under the Trump administration, according to an NPR investigation.

CFTC staffing at the end of 2025 was 21% below its previous 10-year average, while enforcement actions had fallen nearly 80%. Former enforcement attorneys told NPR that cryptocurrency investigations were dropped, and staff involved in major cases were pushed out or resigned.

The decline comes as the agency oversees the rapid expansion of prediction markets. Chairman Michael Selig is currently the sole member of the normally five-member commission. The CFTC said it expects to hire roughly 100 employees by the end of the year. However, NPR reported that staffing remained about 16% below the 10-year average as of July.

Sen. Elizabeth Warren requested the GAO review in July, citing staffing and enforcement concerns. The investigation is expected to begin in December.

Kalshi’s $2 Million Donation Sparked NCPG Turmoil

Kalshi’s $2 million donation to the NCPG has sparked internal turmoil, donor withdrawals and leadership departures, according to a Barron’s investigation.

The report found that former Executive Director Heather Maurer presented the deal to board members in April after it had already been finalized, raising concerns about transparency and the absence of consumer-protection commitments.

Following the May announcement, questions about the NCPG’s legitimacy began to arise. Regulators in Michigan and Ohio withdrew funding, while problem gambling organizations in Nevada and Washington ended their NCPG affiliations.

Maurer resigned in September. Program Director Jaime Costello also left, although she said her departure was unrelated to Kalshi.

Kalshi asked the NCPG to hire staff and develop training materials for “responsible trading” programs, but neither commitment has been fulfilled, according to a person close to Kalshi. The company has held off promoting the NCPG’s gambling helpline pending those steps, while defending the partnership as an effort to protect traders.

Illinois Gambling Taxes Rise 19% to Record $2.7 Billion

Illinois generated a record $2.66 billion in state-designated gambling revenue in fiscal 2026, up 19.2% year over year, according to a new report by the state’s Commission on Government Forecasting and Accountability.

Video gaming terminals (VGTs) led contributions at $1.01 billion, followed by the lottery at $788 million. Casino adjusted gross receipts rose 13% to $2.05 billion, with state transfers increasing from $186 million to $262 million.

Sports betting generated $1.48 billion in adjusted gross receipts, up nearly 12%, while state transfers rose from $380 million to $593 million, driven in part by the new per-wager tax.

Despite rising revenue, online wagers fell from 385 million to 316 million, a decline the report attributed to the additional tax burden. Operators responded to the tax by imposing surcharges and minimum-bet requirements.

Parlays accounted for 61.1% of sports bets, generating approximately $879 million in bettor losses.

Massachusetts Advances Sportsbook AI Review Following DraftKings Backlash

The Massachusetts Gaming Commission is moving forward with its review of sportsbooks’ use of artificial intelligence, following a New York Times investigation alleging that DraftKings used machine learning to identify customers likely to lose more money and target them with promotions.

At its Oct. 8 meeting, Executive Director Dean Serpa said staff had spent several months reviewing operators’ privacy policies, machine learning disclosures and internal controls.

Since Sept. 24, when the commission directed staff to examine DraftKings’ practices and AI use across the industry, the team has met twice and prepared questions to send to all licensed operators.

The commission plans to send the questions early next week, while meetings with individual sportsbooks are being scheduled. The first is expected later next week.

DraftKings, which has denied improperly targeting vulnerable customers, also faces a proposed class action over its alleged AI practices. No regulatory findings have been announced.

Pennsylvania Governor Candidates Clash Over Skill Games Taxation

Pennsylvania Gov. Josh Shapiro and Republican challenger Stacy Garrity outlined different plans for regulating and taxing skill games during a gubernatorial debate ahead of an Oct. 13 industry deadline.

Garrity supports a $500 monthly fee per machine, which she estimated could generate $300 million annually based on 50,000 machines. Shapiro has long proposed a 52% tax rate, arguing that the revenue could support the state’s general fund and public transportation.

The debate comes as lawmakers and industry stakeholders ask the Pennsylvania Supreme Court to extend its stay of a June ruling that subjected skill games to the state’s gambling laws. The requested extension would push the deadline to Feb. 10, giving lawmakers more time to regulate the industry. Without it, the machines must be shut off on Oct. 13.

Michigan Orders 33 Offshore Gambling Operators to Stop Serving Residents

The Michigan Gaming Control Board (MGCB) issued 33 cease-and-desist letters Thursday to offshore gambling operators accused of illegally offering online casino games, sweepstakes-style games and sports betting to state residents.

In its announcement, the regulator highlighted the risks posed by unlicensed sites, particularly to players in Michigan’s self-exclusion programs.

Prediction Markets Weekly Roundup

The week started with another record weekend, with $9.43 billion in prediction market trading volume. Kalshi led the surge, posting a record $3.68 billion on Sunday, driven largely by sports combination contracts.

Kalshi partnered with four Native American tribes to launch tribal-branded prediction market apps, fueling a division within tribal gaming over the industry’s expansion. It also launched its US500 perpetual futures contract, while ProphetX filed to certify markets tied to rival platforms’ trading volumes, and Polymarket began migrating integrations to Protocol V2.

In sports partnerships, NBA star Anthony Edwards partnered with PrizePicks. At the same time, Ronald Acuña Jr. became the first MLB player to sign with a prediction market operator through a deal with Kalshi.

With growth came regulatory setbacks. ProphetX, Gemini and Webull withdrew sports contracts from Connecticut, while PrizePicks suspended its Team Picks product in Missouri. Coinbase also agreed to halt sports contracts in Michigan, joining Robinhood and Kalshi.

In court, Coinbase filed its opening brief in the Second Circuit in its appeal against Connecticut. Nevada received an extension until Nov. 16 to respond to Crypto.com’s Supreme Court petition, while Polymarket challenged a Dutch gambling ban in court.

On consumer protections, Sen. Richard Blumenthal said he plans to expand his investigation into VIP programs to include DraftKings and prediction markets, such as Kalshi and Polymarket. A Bloomberg investigation found that long-shot contracts account for roughly half of trading volume on Kalshi and Polymarket International. Money staked on those positions generated aggregate losses of 15% and 27%, respectively, excluding fees.