Politicians made their voices heard around the gambling industry this week.
While increasing trading volume is a clear indication of prediction markets’ momentum, legal and legislative pressure threatens to halt the growth.
These opposing dynamics highlight today’s Bingos & Busts, our weekly recap of gambling industry headlines.
Bingo: Democratic Congressman Hold Selig’s Feet to Fire
CFTC Chair Mike Selig faced a predictably partisan House Agriculture Committee on Thursday, as Republicans lobbed softballs and Democrats pressed him on the understaffed and unbalanced agency’s position on war-related markets, insider trading, Trump’s family ties to Kalshi and Polymarket, and whether event contracts are just gambling by a different name. “Companies try to hide behind federal law and call it innovation. It’s not innovation, it’s a bet,” remarked California Rep. Jim Costa. While meaningful change rarely comes out of these Congressional hearings, Selig – who responded repeatedly with platitudes such as “we take this very seriously” and the CFTC regulates under “broad definitions” of commodities and swaps – will at least be looking over his shoulder as the midterm elections approach.
Bust: Politicians Keep Seeing Gambling as Too Easy a Tax Source
Need to raise more tax revenue? Increase levies on betting. Simple enough. At least that’s the mentality of some public officials. This week, Rahm Emanuel, a longshot 2028 presidential candidate, proposed a 10% federal tax on gambling operators and prediction markets to raise $30-50 billion annually to fund US innovation. In Ohio, state Sen. Bill Blessing introduced a bill to slap a 2% fee on all sports bets. A similar per-wager tax in neighboring Illinois isn’t shaking out so well, as the impact on consumers of such hasty decisions tends to be overlooked.
Bingo: Masters Drives Massive Business for Kalshi
As Rory McIlroy claimed his second straight Green Jacket, The Masters generated $545 million of trading volume on Kalshi, $460.3 million on the market for who would win the tournament. Since the $1 billion traded on Super Bowl Sunday was spread across multiple markets, the golf tournament is considered by industry observers as the most-bet sporting event in the company’s history. While trading volume on a prediction market isn’t equatable to betting handle at a sportsbook, the half-billion-plus figure is a testament to the surging popularity of exchanges and why they appear to be a great fit with the live betting appeal of golf.
Bust: Damon Jones To Plead Guilty
Damon Jones, one of three NBA figures charged in the FBI’s gambling-relatied bust last October, is set to change his plea from not guilty on April 28, according to a court filing, apparently ready to admit that he provided insider information about injuries to LeBron James and Anthony Davis to gamblers while he served on the Lakers coaching staff. Jones faces a separate indictment for allegedly profiting from fixed poker games.
Bingo: Bet365 Launches in Michigan, Eyes Massachusetts
Bet365’s methodical build continues, as the UK-based sports betting and casino brand went live in Michigan today and is partnering with the Tigers and Red Wings to boost its presence in its 17th state. Massachusetts is next on the road map, with the state’s gaming commission reopening applications for sports wagering licenses at the company’s request. Industry buzz has the company eyeing New York and beyond, and the Coates family considering selling a majority stake.
Bust: Virginia Senator Displays Obstinance
Despite Virginia Gov. Abigail Spanberger’s veto having the support of the Fairfax County community, state Senate Majority Leader Scott Surovell seems intent on pushing through legislation that would allow a casino in the county. We understand the potential positive economic impact, but Sorovell has been labeled “positively Trumpian” for trying to force a casino down the throats of the residents, a characterization that has to sting a Democrat at least a little.
The post Congressional Dems Expose CFTC’s Selig, Kalshi Does Big Masters Business in This Week’s Bingos & Busts appeared first on Gambling Insider.
