The fight over prediction markets rages on with multiple legal actions underway

This week, we saw another flurry of legal action taken against the prediction market sector, with POTUS himself weighing in on the issue and blasting opponents of the sector.

The past few weeks have been difficult for prediction markets, from Asia to Europe to North America, with multiple regulatory actions taken against the sector. While not all of these are definitive, the sector has been pummeled by prosecutors and watchdogs all over the world.

Notably, the Commodity Futures Trading Commission (CFTC) has launched a lawsuit against Minnesota, arguing that the state had no right to try to outlaw prediction markets.

This follows the state’s signing a law into effect, which is set to criminalize prediction market platforms on August 1, 2026, should no court-ordered injunction arrive in the interim.

Minnesota is not the only place where legal action is taking shape. Rhode Island’s Attorney General, Peter Neronha, has filed a 32-page complaint against prediction markets in the Providence County Superior Court, insisting that platforms such as Kalshi and Polymarket were flouting state laws on gambling.

"The problem here is that Rhode Island State law heavily regulates gambling, for good reason, and we allege that Kalshi and Polymarket are evading our laws. And Rhode Islanders are losing out," Neronha said in his complaint.

Business and finance

Bet365 has significantly expanded its reach with the company obtaining licenses from the Autorité Nationale des Jeux (ANJ) in France and the Alberta Gaming, Liquor and Cannabis (AGCO) in Alberta, Canada.

The two expansions come at a crucial time, allowing the company to launch in both jurisdictions at a time of heightened sports activity, and notably, the upcoming 2026 FIFA World Cup. Bet365 is planning to launch poker and horse racing on top of its sports betting offer in France, and push with both iGaming and sports betting in Alberta.

In the meantime, the CFTC and the National Hockey League (NHL) have signed a new data-sharing agreement, which is designed to further boost sports transparency and also provide the federal regulators with the means to ensure that prediction market platforms operate free of fraud and manipulation.

The partnership is a direct response to the growing concerns expressed by critics of the sector that prediction markets make a fertile ground for insider trading, with platforms and the federal regulator having limited recourse in ensuring that this does not happen.

Play’n GO became the latest supplier this week to secure a license in the Alberta iGaming market. The province is set to launch its online gambling market officially on July 13, 2026, and will be the second province in the country to have shifted towards a licensee-based model.

Laws and regulations

The President of the United States, Donald Trump, has criticized opponents of the prediction market, using strong language to describe the sector’s critics. According to POTUS, the Commodity Futures Trading Commission (CFTC) has been doing a good job of overseeing the sector, whereas efforts by states’ attorneys general and gaming regulators have been unlawful.

"We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules! Other Countries are after this new form of Financial Market, and we want to remain at the top," President Trump shared on Truth Social, a social media he controls.

The European Court of Justice has weighed in on an important issue concerning the gambling market in the European Union and what laws ought to apply when it comes to regulating the sector.

The ECJ concluded that when residents of an EU state bring a case to local courts over the provision of gambling services to them by a company without a country-specific license, national courts may pursue a case, and are not bound by the legislation of the home country of the licensee, in this case, Malta, when determining whether the services were lawfully provided.

The decision specifically focuses on EU-licensed gambling websites, and confirms that holding a license in one EU member state does not grant operators access to all EU markets, potentially opening the door to a wave of civil claims from players seeking to recover losses.

Tennessee has also moved forward this week to enact a new law that effectively bans sweepstakes casinos.

Senate Bill 2136 specifically seeks to ban the use of dual currency platforms that offer casino-style games, and which allow players to still redeem monetary and real-world awards in a roundabout way, with Gov. Bill Lee signing it into law.

Indonesia has moved against Polymarket, blocking the platform outright, possibly after the company featured a market on whether the country’s President would see his term ended prematurely.

A similar move was undertaken by Spanish authorities, with the country now probing both Kalshi and Polymarket over whether their products constitute a form of illegal gambling. Spain, however, has only temporarily suspended access to the platforms over the next three to four months while the investigation is ongoing.

The voice of the industry

This week, the Voice of the Industry section focuses on the outcome of the Casino Guru Awards - a major event on the iGaming calendar that distinguished some of the industry’s most accomplished companies and individuals based on their hard work over the past year.

Hosted by Denisa Vydumska, the gala honored operators, providers, and individuals who are actively shaping a more transparent, innovative, responsible, and player-focused future for iGaming. The event featured dazzling live performances, powerful speeches, world-class entertainment, and emotional winner announcements that highlighted the incredible progress being made across the industry. To find out more about the Casino Guru Awards 2026 ceremony, make sure to read our detailed update here.

Not least, SiGMA Summit is reminding attendees and interested parties that the event is only four days away, with a welcoming party to be held on May 31, and the main exhibition day to kick off on June 2. You can find more information about the upcoming event here.

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