Kalshi heads into two pivotal court hearings this week as lawmakers revisit gambling bills and major operators report Q1 earnings.
Prediction market litigation leads this week’s gambling agenda, with key Kalshi hearings in Massachusetts and Maryland. Alongside that, gaming giants, including Flutter, DraftKings, and Wynn Resorts, are set to report Q1 earnings, while gambling bills could advance across multiple states.
Here are the gambling stories to watch this week.
Prediction Markets
Kalshi Faces Hearings in Massachusetts and Maryland
Kalshi’s multi-state legal battle enters a crucial week with hearings in Massachusetts and Maryland.
On May 4, the Massachusetts Supreme Judicial Court is set to hear oral arguments in Massachusetts’ case against Kalshi.
In January, a lower court granted the state an injunction against Kalshi’s sports event contracts. However, an appellate court issued a stay in late February, allowing the platform to continue operating.
The case was then moved directly to the state’s highest court. Recently, the Commodity Futures Trading Commission (CFTC) filed an amicus brief in support of Kalshi, reinforcing its position that event contracts fall under federal jurisdiction.
Just days later, on May 7, the United States Court of Appeals for the Fourth Circuit will hear oral arguments in Kalshi’s appeal in Maryland. A federal judge in the U.S. District Court for the District of Maryland denied Kalshi’s request for a preliminary injunction last August, setting up the appeal as another key test of the company’s federal preemption argument.
Earlier this year, the Third Circuit ruled in favor of Kalshi in its case against New Jersey. At the same time, the Sixth Circuit denied Kalshi’s request for emergency relief, signaling skepticism toward Kalshi’s arguments.
Judges in the Ninth Circuit have also questioned whether event contracts fall within federal derivatives oversight in related cases.
What to watch:
Whether either court signals how it views the balance between state gambling enforcement and federal derivatives oversight.
Will Wisconsin Seek Remand After CFTC Lawsuit?
In late April, Wisconsin sued Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase in state court, arguing they violated state gambling statutes.
The operators responded by moving the cases to federal court, a strategy they’ve used in other states. In addition, the CFTC filed a federal lawsuit against Wisconsin, challenging the state’s efforts to apply gambling laws to prediction markets.
What to watch:
Whether Wisconsin files a motion to remand. Other states, including Nevada and Washington, have already attempted similar moves.
Will the CFTC Join More Cases or Sue More States?
The CFTC has expanded its legal activity to reinforce its position that prediction markets fall under its authority. The agency has filed lawsuits against New York, Connecticut, Arizona, and Illinois. As mentioned, it also filed an amicus brief in Massachusetts.
With litigation ongoing across multiple jurisdictions, the question now is whether the agency will initiate new lawsuits or join additional cases. One notable gap remains Washington, where the state has taken action against prediction markets.
Other states, including Montana and Utah, could also see further legal escalation.
What to watch:
Whether the CFTC expands its legal activity to additional states.
Will the House Follow the Senate’s Prediction Market Ban?
Last week, the United States Senate approved a measure banning members, staff, and officers from participating in prediction markets. The move comes amid growing concerns among federal lawmakers over potential conflicts of interest and the use of non-public information.
Senate Minority Leader Chuck Schumer called for the House of Representatives and the White House to follow the Senate’s lead.
Attention now turns to the House, where it remains unclear whether lawmakers will take up similar restrictions.
What to watch:
Whether the House introduces or advances a companion measure.
More Gambling Bills Could Advance
D.C. iGaming and Sweepstakes Bill Gets May 4 Hearing
In Washington, D.C., lawmakers will hold a hearing on May 4 on a bill that would legalize online casinos while banning sweepstakes casinos.
Bill’s sponsor, Councilmember Wendell Felder, previously cited estimates showing that District residents wagered approximately $700 million on unlicensed platforms in 2024, which he argues could go into the local economy.
What to watch:
Lawmakers and stakeholders’ sentiment and whether the bill advances.
Colorado Sports Betting and Gaming Bills Move to House Hearing
In Colorado, two gambling-related bills are advancing after clearing the Senate.
SB 131 and SB 163 are both scheduled for House hearings on May 4. SB 131 initially included a proposed ban on prop bets and a prohibition on sportsbooks limiting sharp bettors, though that language was removed during the legislative process.
Meanwhile, SB 163 would centralize aspects of gaming regulation in the state.
What to watch:
Whether House lawmakers introduce new amendments, including revisiting previous versions of the bills, or removing additional provisions.
Passed Bills Await Enrollment in Tennessee, Iowa, and Louisiana
Several bills that have already passed both chambers are now awaiting final procedural steps before reaching the governors’ desks.
In Tennessee, SB 2136 would ban sweepstakes casinos. In Iowa, SF 2289 expands enforcement tools against unlicensed operators, including sweepstakes and certain DFS platforms.
Meanwhile, in Louisiana, HB 53 amends racketeering statutes to add existing gambling crimes — including those commonly cited in sweepstakes enforcement.
What to watch:
When these bills are formally enrolled and sent to governors for signature.
Will Minnesota, Louisiana, or Oklahoma See Late-Session Movement?
With legislative sessions entering their final stretch, attention turns to whether remaining proposals will advance.
In Minnesota, bills targeting sweepstakes casinos and prediction markets recently passed in the Senate and await action in the House.
In Oklahoma, SB 1589, which would prohibit dual-currency payment systems used by sweepstakes casinos, has passed through two House committees and awaits a floor vote. Previously, the bill passed in the Senate.
In Louisiana, a sweeps-specific bill cleared the House and a Senate committee. It now awaits further action in the Senate.
What to watch:
Whether lawmakers prioritize gambling bills in the closing days of the session.
Key Earnings Reports
Flutter Reports Q1 Results on May 6
Flutter Entertainment, the parent of FanDuel, is set to report first-quarter earnings on May 6, offering an updated look at performance across its global portfolio.
After the company delivered disappointing results in Q4, the focus will be on whether the company shows improved momentum.
What to watch:
- Whether Flutter meets Wall Street’s estimates
- Performance by segments
- Prediction markets’ impact on FanDuel’s performance
DraftKings, Wynn, and Coinbase Report May 7
May 7 brings a cluster of earnings from DraftKings, Wynn Resorts, and Coinbase.
DraftKings’ results will be closely watched for updates on margins and promotional spending, as well as news and the impact of prediction markets. While it met estimates in Q4, the stock has declined significantly over the past year.
Wynn’s report will offer insight into Las Vegas, which has seen some positive trends in visitor numbers.
Coinbase, while not a gambling operator, remains relevant to the conversation about prediction markets. Investors will be watching for commentary on event contracts, trading volumes, and any in-house platform developments.
What to watch:
- Whether DraftKings meets analysts’ estimates and the impact of prediction markets
- News from DraftKings on Railbird Exchange
- Wynn’s performance in Las Vegas
- Coinbase’s prediction market performance and news on its own platform
The post Kalshi Hearings, Q1 Earnings, Bills Hearings Lead the Gambling Stories to Watch This Week appeared first on Gambling Insider.
