The Commodity Futures Trading Commission has sent two proposed rules to the White House that would reshape oversight of event contracts. One filing (RIN: 3038-AF82) expands the definition of a swap to include event contracts. The other bars designated contract markets from listing contracts on gaming products such as blackjack and craps. The move follows two court defeats for the regulator: last week the Sixth Circuit sided with Tennessee, overturning a lower court decision. Kalshi began offering event contracts in the state in 2025, arguing they meet swap standards.
At G2E in Las Vegas, the American Gaming Association and the Indian Gaming Association presented a united front against prediction markets. The AGA estimates states have lost over $1bn in tax revenue due to growth in the segment. AGA president Bill Miller said a baseball game on Tuesday night 'serves no economic purpose' — it is sports betting. California Nations Indian Gaming Association chairman James Siva noted that tribes remain the only operator in California, where prediction markets are growing fast.
The Senate passed the Protect College Sports Act 77–22, a bill by senator Ted Cruz allowing conferences and associations to suspend athletes who participate in betting or event contracts. The bill now goes to the House.
Kalshi is seeking a new funding round of $1bn at a valuation near $40bn, double last year's figure, according to media reports. Against that backdrop, San Antonio Spurs centre Victor Wembanyama sharply criticised operator endorsements: 'Absolutely not. I am very sad to see players promote this.' LeBron James and Giannis Antetokounmpo have signed major deals with prediction markets.
