DraftKings NCAA Lawsuit, Kalshi Legal Battles Lead This Week’s Gambling Stories To Watch
Legal challenges for DraftKings and Kalshi, alongside key state legislative deadlines, are leading this week’s stories in the U.S. gambling industry.
As March Madness enters the Sweet 16 stage, DraftKings continues to use official language despite an NCAA lawsuit. Meanwhile, Kalshi is facing growing legal challenges across multiple states. Elsewhere, key legislation is approaching critical deadlines.
Here are the gambling stories to watch this week.
DraftKings NCAA Lawsuit: Will The Operator Adjust Language?
Last week, the NCAA filed a lawsuit against DraftKings, claiming the operator used “March Madness” and other trademarked language without permission.
DraftKings responded that its use of “March Madness” and related phrases falls within fair use standards. At the time of writing, the operator still uses the term, along with other phrases such as “Sweet 16.”
By contrast, BetMGM has removed the language, while several other operators have avoided using it altogether.
What to Watch:
The NCAA successfully forced prediction market operator Kalshi to remove similar language. Will DraftKings follow suit and adjust its approach, or continue to challenge the NCAA’s claims?
Kalshi’s Legal Battles: Courts, States, and Deadlines
Kalshi’s ongoing legal battles with multiple states continue this week, with deadlines and potential expansion into new jurisdictions.
Arizona Case: Federal vs State Jurisdiction Fight
Last week, a federal judge denied Kalshi’s request for a temporary restraining order against Arizona. At the same time, the court ordered Kalshi to show cause why the case should not be dismissed under the Younger abstention doctrine, given ongoing state criminal proceedings.
On Friday, Kalshi submitted its arguments, stating that the timing of the charges falls within the “bad faith” exception.
What to Watch:
Arizona’s response is due by March 27.
Nevada: Enforcement Risk Remains Elevated
Following the Ninth Circuit’s denial of a federal stay last week, Nevada regulators moved forward with enforcement, issuing a temporary restraining order that forced Kalshi to temoprarily halt operations in the state.
What to Watch:
Kalshi could seek an emergency petition to the U.S. Supreme Court, but that scenario appears unlikely.
Also, as gaming attorney Daniel Wallach has pointed out, Nevada could pursue criminal charges under existing law. Under NRS 463.160, operating unlicensed gambling is a felony, punishable by fines of up to $50,000 and imprisonment of up to 10 years.
Florida: Political Pressure Emerges
Another state that could enter the broader legal dispute is Florida.
Last week, during a CNBC interview, Governor Ron DeSantis publicly questioned whether prediction markets infringe on the Seminole Tribe’s gaming compact.
What to Watch:
The governor’s comments could prompt state regulators to act against Kalshi or other prediction markets. The Seminole Tribe holds exclusivity over sports betting in the state, which could also factor into any response.
Class Action Consolidation Deadline
Three class action lawsuits, filed in the Southern District of New York, face a March 24 consolidation deadline. The complaints allege that Kalshi operates as an unlicensed sportsbook and misled users on how its platform operates.
What to Watch:
Whether the three lawsuits, and potentially other similar cases, are consolidated into one.
Legislation: Scheduled Hearings and Key Deadlines
Maryland: Crossover Deadline Forces Action
Maryland lawmakers face a March 23 crossover deadline.
The House quickly advanced and passed one sweepstakes casino ban bill on Friday, with a second measure advancing from committee.
What to Watch:
Whether the second bill, HB 1226, gets a floor vote, potentially sending the Senate multiple sweepstakes measures.
Maine: Two Bills, Two Different Paths
The Maine legislature advanced a bill prohibiting credit cards as a deposit method for sports betting. The measure, LD 2080, now awaits final engrossment before it moves to Gov. Janet Mills’ desk.
Meanwhile, LD 2007, which would prohibit sweepstakes casinos, was held as “unfinished business” by the House for three consecutive legislative days. The measure has already passed in the Senate.
What to Watch:
Whether the House votes and potentially passes the sweepstakes casino ban bill. Whether Governor Mills acts on LD 2080.
Tennessee: Sweeps and Prediction Market Bills
In Tennessee, lawmakers are advancing two measures targeting both sweepstakes casinos and prediction markets.
- SB 1992, which would restrict prediction markets, has advanced from a subcommittee and is scheduled for a March 23 hearing.
- HB 1885, targeting sweepstakes casinos, is set for a March 24 hearing after clearing an earlier committee.
What to Watch:
Lawmakers’ sentiment and potential vote on HB 1885 could signal a broader appetite for regulation. The Senate already passed the companion bill SB 2136, but the House has yet to act.
Illinois: Committee Deadline Looms
Illinois’ sweepstakes ban bill (SB 3439) faces a key committee deadline on March 27. Failure to advance by then would likely stall the bill for the session.
What to Watch:
Whether lawmakers act on SB 3439.
Wisconsin and Other States to Monitor
Wisconsin: Governor’s Decision Pending
The Wisconsin legislature passed a mobile sports betting bill last week, sending it to the governor’s desk.
If Gov. Tony Evers signs it, it would allow the state’s Native American tribes to renegotiate their gaming compacts to include mobile sports betting. Currently, the state allows only retail wagering at tribal casinos.
What to Watch:
Evers has shown some hesitancy over signing the bill, citing questions about whether all tribes are on board. His recent veto activity also suggests a willingness to push back on legislation.
States to Monitor
While no hearings are scheduled, lawmakers in several states could pick up and discuss gambling-related bills.
In Oklahoma and Iowa, measures addressing sweepstakes casinos have passed in one chamber and await action in the other.
In Louisiana and Minnesota, lawmakers have introduced multiple bills addressing topics such as sports betting legalization, prediction markets, sweepstakes casinos, and prop bet bans.
What to Watch:
Most of the bills have been assigned to committees, which means they could receive a hearing date at any point, including this week.
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