The American Gaming Association has urged Texas authorities to file lawsuits in state court against prediction market platforms and block their operations across the state. AGA vice president Tres York made the call during a Texas senate committee hearing.
Prediction market volumes in Texas rank among the highest in the US. Trading on the NFL game between Dallas Cowboys and New York Giants topped $208 million. The Ohio State versus Texas match drew more than 50.7 million contracts. Data from Eilers & Krejcik Gaming show that Texas and California together account for 43% of US sports-contract activity. Sports betting is banned in both states.
Senator Bryan Hughes chaired the hearing at the state affairs committee. The AGA argued that a contract on 'Cowboys beat Giants' is no different from a wager at a sportsbook. York advised the state to demand geoblocking and file in state rather than federal courts, where attorneys general have lost more often. 'Prediction markets think they can mess with Texas. I hope you prove them wrong,' he said.
Robert DeNault, counsel for Kalshi, countered that banning federally regulated platforms would push customers to offshore sites without consumer protection. Gaming addiction researcher Brianne Doura-Schawohl testified that 52% of Gen Z respondents include betting and prediction markets in their long-term financial planning.
On Friday Kalshi announced a partnership with the Tunica-Biloxi Tribe in Louisiana, the first for a prediction market with a federally recognised sovereign nation. The tribe will launch its own app on Kalshi infrastructure through its SaltTrade Derivatives unit. On Wednesday the Ninth Circuit ruled that Kalshi sports contracts on tribal land fall under the Indian Gaming Regulatory Act.
