Michigan, Utah Prediction Market Hearings Headline This Week’s Gambling Stories to Watch

Several key prediction market cases return to court this week, with key hearings scheduled in Michigan and Utah. Elsewhere, the fallout from Brendan Sorsby’s gambling case continues, Indiana regulators will discuss college prop bets, and Pennsylvania lawmakers face renewed pressure to address skill games following last week’s state Supreme Court ruling.

Here are the gambling stories to watch this week.

Prediction Markets

Key Michigan and Utah Hearings

In Michigan, a federal judge will hear arguments in Coinbase’s motion for a preliminary injunction against state officials on June 24. The hearing comes shortly after a separate Michigan federal judge denied preliminary injunction requests from Polymarket and Robinhood.

A day later, another Michigan hearing is scheduled in the state’s lawsuit against Kalshi, where the court will consider the state’s motion to remand the case back to state court.

On June 25, there will also be a hearing in Utah. A federal court is scheduled to hear Kalshi’s motion for a preliminary injunction against state enforcement efforts.

What to watch:

• Whether Coinbase’s preliminary injunction will also be rejected, or the court takes a different view on the arguments.
• Whether the federal court remands the Kalshi v. Michigan case back to the state court.
• Will Kalshi receive a preliminary injunction against Utah officials?

Filing Deadlines Continue Across Connecticut, Wisconsin, and Ohio

Several prediction market cases also have filing deadlines this week.

In the CFTC’s lawsuit against Connecticut, the state filed its motion to dismiss on June 4. The CFTC’s response is due June 24, giving the agency another opportunity to clarify its position on state attempts to regulate federally listed event contracts.

In Ho-Chunk Nation v. Kalshi, Kalshi filed a motion for leave to amend its complaint after a federal judge allowed the lawsuit to proceed under the Indian Gaming Regulatory Act in May. The tribe replied on June 15, and Kalshi’s reply is due June 22.

In the Sixth Circuit appeal involving Kalshi and Ohio, Kalshi filed its opening brief on May 5, while Ohio responded on June 4. Kalshi’s reply is due June 25.

What to watch:

Further arguments by the CFTC and Kalshi that sports-event contracts fall under the agency’s exclusive jurisdiction and cannot be regulated by states.

Novig Launch Watch Begins After CFTC Approval

Another potential entrant could soon join the increasingly crowded prediction market sector.

Last week, Novig received a CFTC approval to operate as a Designated Contract Market. The company has not yet announced a launch date, but that could be as soon as this week. Last week, Prophet X went live about a week after its CFTC approval.

What to watch:

Whether Novig launches its prediction market platform, announces launch timelines, or which contract categories it offers first.

Sports Betting

Sorsby Fallout Continues After Lawsuit Withdrawal

The Brendan Sorsby gambling saga may have ended his college career, but the broader fallout is still developing.

Sorsby has dropped his lawsuit against the NCAA, ending his college eligibility and entering the NFL’s supplemental draft. The move followed weeks of litigation and reporting over his gambling violations, Texas Tech’s involvement, and claims from his agent that Cincinnati knew about his gambling issues before they became public.

Cincinnati has disputed that claim. Meanwhile, according to ESPN, the Big 12 is not in a rush to withdraw its separate lawsuit involving Texas Tech and will discuss its next steps this week.

What to watch:

• Whether additional details emerge regarding what Cincinnati and other parties knew about Sorsby’s gambling violations.
• Whether the Big 12 continues its case against Texas Tech.

Indiana Regulators to Discuss NCAA Prop-Bet Request

The Indiana Gaming Commission is expected to discuss the NCAA’s request to remove college player prop bets during its Thursday meeting. The discussion comes as the NCAA continues to push states to restrict wagers tied to individual college athlete performance, citing integrity concerns and athlete harassment.

In January, the Missouri Gaming Commission declined to ban player prop bets following the NCAA’s request. At the time, the regulator stated it didn’t want to change the rules at such an early stage of the regulated market. Missouri launched online sports betting on Dec. 1.

What to watch:

Whether Indiana moves toward a ban, following states such as Vermont, Ohio, Maryland, and Louisiana.

World Cup Elimination Round Could Drive Betting and Trading Activity

The FIFA World Cup’s Round of 32 begins Sunday, June 28, marking the start of the tournament’s elimination phase.

In the past week, World Cup volume at Kalshi has grown from $281 million to $464 million. Meanwhile, on Polymarket’s global platform, trading has reached $3 billion, up from $2.36 billion a week ago. The tournament is well on pace to become the most traded event ever, surpassing the roughly $3.5 billion total for the U.S. 2024 elections.

Knockout rounds typically create sharper betting interest because each match becomes win-or-go-home. That could also benefit prediction market operators offering World Cup-related contracts, particularly if casual interest rises as the tournament field narrows.

What to watch:

• Betting and trading volume acceleration with the start of elimination matches.
• Whether the overall winner market sees large swings.

Legislative

Pennsylvania Skill Games Debate Resets After Supreme Court Ruling

Pennsylvania lawmakers now face a reshaped skill games debate after the state Supreme Court ruled that Pace-O-Matic’s Pennsylvania Skill machines qualify as slot machines.

The decision overturned lower court rulings that had allowed the devices to operate in a legal gray area. The ruling also gives lawmakers 120 days to determine how the machines will be treated in the future.

What to watch:

Whether lawmakers consider Gov. Shapiro’s proposal to tax skill games as part of his budget or advance one of the existing skill game bills.

More Federal Prediction Market Bills Could Emerge

Congress has already seen a wave of prediction market bills introduced this year, including measures that would ban certain sports-event contracts, restrict political trading by public officials, or create new federal oversight requirements.

Last week, Congressman Bryan Steil introduced the Stop Lawmakers from Predicting Act, and more legislation could follow this week.

What to watch:

Whether new bills are introduced, and any movement on existing bills.

Sweepstakes Operators Face Indiana Deadline

Sweepstakes casino operators are approaching a key state deadline.

Indiana’s sweepstakes ban takes effect July 1. Until recently, only a handful of operators had exited the state, with most major platforms continuing to serve customers there.

What to watch:

Whether major sweepstakes operators begin announcing exits or geo-blocking Indiana customers ahead of the July 1 deadline.