Gambling Industry Stories To Watch: Kalshi Ruling, Sweepstakes Bans and iGaming Floor Votes

As regulators and courts confront the rapid expansion of prediction markets, states are simultaneously advancing sweepstakes crackdowns and gambling expansion — setting up a week that could reshape both enforcement strategy and market growth.

Add in a busy earnings slate, and the next few days could materially influence both regulatory trajectories and operator strategy.

Prediction Markets: Ninth Circuit Decision On Kalshi’s Nevada Fight

A key procedural ruling is expected by Monday, Feb. 16, on whether the Ninth Circuit grants Kalshi’s emergency request for a stay. Kalshi is asking the court to pause Nevada enforcement while its appeal plays out.

What to watch for:

The decision will determine whether Nevada can proceed with its planned civil enforcement action against Kalshi. If the Ninth Circuit denies Kalshi’s stay, Nevada has indicated it will file the action on Feb. 17.

The state is also expected to seek a temporary restraining order that could force Kalshi to cease operating in the state, as Polymarket, Crypto.com, and Robinhood have been forced to do.

Gambling Bills Scheduled for Hearings This Week

Tennessee: Sweepstakes Casino Crackdown

Lawmakers in Tennessee will discuss companion bills on Feb. 17 that would make “online sweepstakes games” illegal, defining them as platforms that use a virtual currency system and simulate casino-style games.

HB 1885 and SB 2136 would broaden enforcement beyond operators to vendors, partners, and other intermediaries.

What to watch for:

Whether lawmakers in either chamber vote to advance the bills out of committee or delay action.

Maine: Sweepstakes Casino Ban

Maine’s LD 2007, explicitly titled “An Act Regarding the Prohibition of Online Sweepstakes Games,” will receive a second hearing by the Joint Veterans and Legal Affairs Committee on Feb.18.

In January, the committee heard testimony in favor of a ban from the Maine Gaming Control Unit and DraftKings, while industry representatives showed opposition. A vote was not taken.

What to watch for:

Whether lawmakers advance the bill. Whether the committee schedules a work session vote following the hearing — a key signal of the bill’s viability this session.

Connecticut: Age Restrictions on Prediction Markets

On Feb. 18, the Connecticut Joint General Law Committee will discuss HB 5038, a bill introduced by Gov. Ned Lamont to restrict access to prediction markets and advertising for consumers under 21.

What to watch for:

Whether Connecticut frames this primarily as age-gating/consumer protection, and whether prediction market representatives raise federal pre-emption arguments tied to CFTC oversight.

Bills On (Or Moving to) The Floor

Virginia: Online Casino Bills

In Virginia, the Senate passed several gambling-related bills on Feb.13 but did not vote on SB 118, which would legalize online casinos. Meanwhile, in the House, lawmakers amended and advanced the chamber’s online casino bill, HB 161, to the floor.

What to watch for:

Whether SB 118 receives a third vote and whether it passes. In the House, whether the chamber votes on HB 161 and if additional amendments are introduced.

Indiana: Sweepstakes Ban Moving in Senate pipeline

Indiana’s HB 1052, a broad administrative bill with provisions to ban sweepstakes casinos, cleared the House and last week advanced from a Senate committee.

What to watch for:

Whether the Senate schedules the bill for second reading and a floor vote.

Florida: HB 189 (illegal gambling) — on House floor track

Florida’s HB 189 has moved to the House floor after passing a committee last week and two subcommittees previously.

The bill targets illegal gambling, including “internet gambling,” which is casino-style gambling offered online or mobile. That language could provide a statutory basis to pursue sweepstakes-style operators.

What to watch for:

Whether the House votes on HB 189 and any amendments in relation to online illegal gambling.

Sports Betting Watchlist: South Dakota and Wisconsin

Last week, the South Dakota Senate passed SJR 504, which would allow mobile sports betting in the state. Currently, sports betting is only permitted in retail locations in Deadwood.

The bill has received a first reading in the House and now awaits committee consideration.

Meanwhile, in Wisconsin, during the annual State of the Tribes address on Feb. 10, tribes pushed lawmakers to revive a stalled online sports betting effort. Tribal leaders described the measure as a key revenue source for Wisconsin’s tribes.

What to watch for:

Whether the South Dakota House schedules a hearing on SJR 504.

Whether Wisconsin lawmakers revive the companion bills that stalled last fall. According to reports, some lawmakers have indicated that talks are ongoing.

Earnings This Week: What To Listen For

Earnings season continues this week with a few notable companies releasing fourth-quarter and full-year results.

Caesars — Feb. 17

Caesars will report Q4/full-year 2025 results Feb. 17.

What to watch for:

Analysts will be watching Las Vegas performance closely, as Strip volatility has increasingly shaped overall earnings sentiment for major operators.

Also, whether Caesars’ leadership signals interest or aversion to prediction markets.

Rush Street Interactive — Feb. 17

Rush Street Interactive, the operator of BetRivers and PlaySugarHouse, will also report earnings on Feb. 17.

What to watch for:

Commentary on Illinois’ minimum bet increase and its impact on wager counts and customer behavior.

Any mentions of the prediction markets’ effect on results.

Gaming and Leisure Properties — Feb. 19

The gambling real estate investment trust will release results on Feb. 19 and host a call on Feb. 20.

What to watch:

Any updates on property leases, sales, and financing. Any commentary on Bally’s Chicago or Las Vegas properties.