March Madness, Virginia Bills and Kalshi Legal Battles Lead This Week’s Gambling Stories to Watch

A busy week lies ahead for the U.S. gambling industry as March Madness betting is expected to drive both sportsbook handle and prediction market trading volume, while lawmakers weigh several gambling bills. Meanwhile, litigation between prediction markets and state regulators continues to expand.

Here are the gambling stories to watch this week.

March Madness Betting: Sportsbooks, Prediction Markets, and Integrity

The NCAA’s March Madness tournament begins this week and is expected to be one of the largest betting events of the year.

Sportsbooks typically see a sharp increase in activity during the tournament. March Madness is also a strategic period for operators to capture new bettors through promos, parlay offers, and bracket-style contests.

However, as with the Super Bowl (which saw $500 million in trading volume on Kalshi), this year’s tournament arrives as prediction markets are increasingly integrating into mainstream culture.

Kalshi’s market on the March Madness champion has already generated over $58 million in trading volume. Duke leads with 22%, followed by Michigan at 18% and Arizona at 17%. The top two have seen movement by a few percentage points in the last few days.

The top three teams are also the favorites on sportsbook platforms. DraftKings similarly has Duke, Michigan, and Arizona as the favorites, while FanDuel currently has Arizona leading, followed by Duke and Michigan.

The tournament also arrives amid growing integrity concerns surrounding prop bets in college sports. The NCAA has called for a nationwide ban and recently introduced player-availability reporting rules.

What to watch:

• Prediction markets’ trading volume, which could signal whether more bettors are shifting from traditional sportsbooks to these platforms.
• Whether probability estimates on prediction markets track closely with sportsbook odds as the tournament progresses.

State Legislation to Watch

Virginia: Governor’s Decisions on Skill Games, DFS, and Casino Referendum

The Virginia legislative session, which ended on March 14, was among the most closely watched by the gambling industry. Lawmakers introduced multiple expansion and regulation bills, some of which were passed and now head to Gov. Abigail Spanberger’s desk.

Measures awaiting the governor’s decision include regulation of skill games and daily fantasy sports, as well as a potential casino referendum in Fairfax County.

Notably, stalled measures include online casino legalization and the creation of a new gambling regulatory body. Both chambers passed competing versions of the bills, but after adopting amendments from the opposing chamber, the measures were sent to conference committee negotiations.

What to watch:

• Whether Spanberger signs, vetoes, or amends the bills.
• The fate of the skill games bill, which in 2024, then-Gov. Glenn Youngkin vetoed.
• Whether local opposition affects the Fairfax casino referendum if the governor signs the bill.

Massachusetts: Will the Remaining iGaming Bills Die Quietly?

This week, two remaining iGaming bills in Massachusetts face committee reporting deadlines.

Last week, a separate proposal was effectively killed after being sent to a legislative study order. Two other proposals remain technically alive, but the window for committee action is narrowing quickly.

What to watch:

Whether either bill advances past the committee stage.

Wisconsin: Will the Senate Take Up Mobile Sports Betting?

Wisconsin’s Assembly passed a mobile sports betting bill last month, and the proposal could be brought to the Senate floor this week.

The measure would legalize online sports betting controlled by the state’s Native American tribes, mirroring Florida’s model, where tribal operators control online betting.

While it passed the House, the measure faces an uncertain future in the Senate. Lawmakers are divided on the matter, with local reports suggesting a division among Republicans, who control the chamber.

While tribes have pushed for the bill, citing economic opportunities, there has also been opposition from national operators such as DraftKings and FanDuel. They argue that revenue-sharing structures under compact-based models may prove economically challenging.

What to watch:

Whether the Senate brings the measure to the floor for a vote, and if so, whether it passes.

Sweepstakes Legislation: Will There Be Movement

Unregulated sweepstakes casinos remain one of the most widely debated regulatory issues in U.S. gambling policy.

Indiana became the first state this year to formally ban sweepstakes casinos. Several other states have also advanced similar measures.

The Senates in Tennessee, Oklahoma, Maine, and Iowa have already passed bills targeting the platforms, which are now awaiting action in the House. Meanwhile, in states like Louisiana and Maryland, bills are in committee.

What to watch:

Whether lawmakers schedule committee hearings or floor votes that could advance sweepstakes bans in additional states.

Prediction Markets

Kalshi’s Appeal in Massachusetts

This week is significant in Kalshi’s ongoing dispute with Massachusetts regulators.

At the end of February, the two parties agreed to an accelerated briefing schedule for Kalshi’s appeal of a January Superior Court ruling in favor of the state. The next key date is March 18, when the company’s opening brief is due.

What to watch:

Kalshi’s legal arguments and supporting documents. Any early indication of how the court may approach the appeal.

Will Kalshi Expand Its Preemptive Lawsuit Strategy?

The Massachusetts appeal may not be the only court-related development involving Kalshi this week.

The company has increasingly turned to federal courts to challenge state-level enforcement efforts against sports event contracts.

While previously it filed suits based on specific enforcement actions, recently Kalshi has also filed preemptive lawsuits, including in Utah and Iowa, in anticipation of such actions.

Last week, it also filed a similar suit against Arizona. Notably, Arizona regulators issued a cease-and-desist letter to Kalshi last May, but the company is only now bringing a legal challenge.

What to watch:

Kalshi’s lawsuit in Arizona marks the 13th state to be involved in a court dispute with prediction markets. As more states raise questions about sports event contracts, more lawsuits will likely follow. Following Kalshi’s lawsuits against Arizona and Iowa last week, it wouldn’t be surprising to see more this upcoming week.

Tennessee Considers Prediction Market Integrity Legislation

The scrutiny of prediction markets has also translated into legislation, with multiple states and federal lawmakers introducing bills targeting the platforms.

This week, Tennessee lawmakers are scheduled to discuss companion bills that would explicitly ban prediction markets. Senate Bill 1992 and House Bill 2079 would amend state statutes to add the following section:

“A person commits an offense who engages in conduct intended to influence the outcome of an event while the person or another is a party to a contract with a prediction-market by which the person will benefit, directly or indirectly, from the occurrence of the outcome.”

If enacted, a violation will be considered a Class E felony.

What to watch:

Committee hearing debate and indication by lawmakers on prediction markets.