The Gambling Wire: Missouri Targets Prediction Markets as Montana Pauses Kalshi Enforcement
Missouri is poised to become the latest state to enter the prediction-market fight, as legal battles continue across the country and the sector continues to expand beyond the courtroom.
Missouri Attorney General Catherine Hanaway is preparing a cease-and-desist action against prediction market companies operating in the state, potentially adding another front to the growing state-level fight over sports event contracts.
The move comes as states continue to challenge the federally regulated sector, even as prediction markets expand their reach and the CFTC further defines how third parties can provide access to event contracts.
The Big Story: Missouri AG Prepares Enforcement Action Against Prediction Markets
Missouri could soon become the latest state to formally move against prediction market operators, with Hanaway telling Heartland News that her office is pursuing cease-and-desist action against companies operating in the state.
Hanaway said she views sports event contracts as gambling under Missouri law, regardless of differences in how prediction markets and traditional sportsbooks structure their fees.
The way that they take contracts, as what they would call them, I call them bets online on sporting events is just like how FanDuel and others do it,” Hanaway said.
“Even though their fee structure might be a little bit different, it still fits four square the definition of gambling in Missouri.”
The attorney general also raised concerns about consumer protections at Kalshi and Polymarket, including age verification and potential insider trading.
Hanaway told Heartland News that her office is open to a settlement and is hopeful an agreement can be reached. She revealed that Kentucky is close to reaching one after pursuing enforcement action earlier this year.
The attorney general said the goal is to bring prediction market companies under Missouri gaming laws and require them to pay gambling taxes. If that does not happen, she said the state will sue.
She also acknowledged that prediction markets might pursue legal action against the state in federal court.
The Daily Wire
Montana Pauses Kalshi Enforcement as Lawsuit Is Dismissed
Kalshi is dropping its Montana lawsuit, but the state has agreed not to enforce its gambling laws against the prediction market operator while its Ninth Circuit rehearing effort plays out.
Under a joint stipulation filed Sept. 17, Montana agreed not to pursue enforcement, investigations or cease-and-desist proceedings involving Kalshi’s event contracts until the later of the denial of further Ninth Circuit review or an en banc decision.
Montana must also give Kalshi 30 days’ written notice if it decides to take action once that period ends. The agreement is tied directly to Kalshi’s Sept. 9 petition seeking rehearing of the Ninth Circuit’s Aug. 28 ruling in the consolidated Nevada case.
CFTC Expands No-Action Position for Software Providing Event-Contract Access
The CFTC has broadened its no-action relief, which could make it easier for third-party software companies to provide access to prediction markets and other regulated derivatives.
The Sept. 17 letter extends substantially the same relief previously granted to Phantom to qualifying passive software providers more broadly.
It allows providers to offer interfaces through which users can view markets and send orders directly to DCMs or other registered entities, without registering as introducing brokers, including when marketing their services and relationships with those entities.
There are limits. Users must remain direct customers or members of the registered entity, while the software provider cannot hold customer assets, generate express buy or sell signals or control how orders are routed or executed.
Genius Sports Launches Prediction.com
Genius Sports is getting closer to the consumer side of prediction markets with the launch of Prediction.com.
The new site, launched through Genius-owned Legend, is not an exchange. Instead, it acts as an aggregator, allowing users to compare prices and equivalent event contracts across different platforms. Live Genius data also powers sports markets, with users able to track changing contract prices and probabilities.
Genius already provides data and integrity services to prediction market operators, including Kalshi and Polymarket.
FTC Extends Review of Caesars-Fertitta Deal
The FTC is seeking additional information on the proposed Caesars Entertainment-Fertitta Entertainment transaction.
Caesars disclosed that both companies received a Second Request on Sept. 14, extending the Hart-Scott-Rodino waiting period while the FTC continues its review.
The same 8-K revealed that Jesse Lynn and Ted Papapostolou resigned from the Caesars board. Both were appointed under the company’s agreement with Carl Icahn’s Icahn Group, which has waived its right to name replacements.
Online Casino Drives Great Britain Gambling Growth
Online casino was the main driver of gambling growth in Great Britain during the year through March 2026, according to new annual industry statistics from the Gambling Commission.
Based on data reported by licensed operators, total Gross Gambling Yield (GGY) increased 4.4% to £17.5 billion ($23.4 billion). Remote casino (online casino) GGY rose 14.8% to £5.7 billion, including £4.8 billion from slots.
Overall, remote casino, betting and bingo GGY increased 6.9% to £8.3 billion, compared with just 1.1% growth across land-based gambling to £4.9 billion. Remote betting, meanwhile, declined. It fell 6.6% to £2.4 billion, while the number of licensed betting shops fell 3.6% to 5,617.
Brazil Reportedly Considers Online Casino Ban
Brazilian President Luiz Inácio Lula da Silva’s government is reportedly considering an executive order to ban online casinos in the country. Discussions were still underway ahead of Brazil’s Oct. 4 election.
Reuters reported that the proposal would prohibit online casino games while allowing sports betting to continue. Brazil currently has 188 authorized betting operators, with the regulated market including both sports betting and online casino games.
The impact could be significant for licensed operators. An industry group told Reuters that casino games account for roughly three-quarters of operators’ revenue.
Prediction Markets Weekly Roundup
The Ninth Circuit handed Tribes a significant procedural victory this week. The court sent back to the district court a challenge by two California tribes to Kalshi’s sports event contracts for further proceedings.
Connecticut produced a new lawsuit. Underdog sued state officials Sept. 15 seeking to block enforcement against its prediction-market offering following the state’s cease-and-desist action. Novig, ProphetX, Gemini and Webull, meanwhile, have opened discussions with Connecticut regulators over their own notices.
In New York, a federal judge heard arguments over the CFTC’s request for a preliminary injunction preventing the state from applying its gambling laws against federally registered prediction market exchanges.
The appeals continued elsewhere. Arizona Attorney General Kristin Mayes asked the Ninth Circuit to summarily vacate a May preliminary injunction protecting Kalshi, arguing the court’s Aug. 28 Nevada decision now controls the case. Kalshi also appealed its Iowa preliminary-injunction loss to the Eighth Circuit.
In Massachusetts, the state Supreme Court waived its usual 130-day deadline for a decision in the state’s case against Kalshi, leaving the closely watched appeal pending after May 4 oral arguments.
At the U.S. Supreme Court, certiorari petitions from Robinhood and Crypto.com challenging state regulation of prediction markets were docketed. Robinhood also urged the Court to wait for the CFTC to conclude rulemaking before considering review of the Ninth Circuit case.
On the legislative front, a Texas Senate committee heard arguments over the legal status and regulation of sports event contracts. Sen. Bob Hall was among lawmakers who questioned whether prediction markets amount to unregulated gambling.
Away from the legal and regulatory fights, Novig said it has surpassed $1 billion in trading volume since its CFTC-regulated launch, while defending the growing backlash over its Sydney Sweeney ad campaign. ProphetX also partnered with ParlayX to expand institutional access to its prediction-market liquidity.
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