It's been yet another busy week in the US sports gambling industry. Here are all the updates you need to be caught up, such as the NBA taking a stance on prediction markets jumping into the sports gambling industry.
National
Sporttrade is a sports-only prediction market legally available in Arizona, Colorado, Iowa, New Jersey, and Virginia, but now it's looking to go national. Citing "disproportional harm" with derivative clearing markets such as Kalshi, offering sport event contracts nationally, Sporttrade has asked the Commodity Futures Trading Commission (CFTC) to expand its operation nationally.
The CFTC has seemingly been pro-prediction market by remaining silent in the face of mounting legal challenges to the industry from state regulators and even cancelling proposed roundtable discussions on regulating the industry, it would not be surprising if Sporttrade's request was granted.
But as Sporttrade itself admitted, this may take some time.
On the subject of the CFTC and prediction markets offering sports event contracts. The NBA sent a three-page letter to the CFTC's acting chair, Caroline Pham, to voice its desire for the federal regulator to step up and regulate the exploding industry.
The letter increases pressure on the CFTC to take a stance on prediction markets, but like Sporttrade said, don't expect an answer soon. The federal regulator is still waiting for Donald Trump's nominee for chair, Brian Quentenz, to be confirmed by the Senate's Agriculture, Nutrition, and Forestry Committee.
Missouri
Missouri should be the first state to open sports gambling in 2025, but its runway is shrinking daily. Missouri has until December 1, 2025, to launch, and with the calendar already turned to May, there's anxiety in the Show-Me State.
While the deadline to open sports betting is seven months away, ideally, sports betting is open before the start of the NFL season on September 4. A goal that becomes less likely by the day.
The Missouri Gaming Commission has yet to receive rules from the Governor's office, meaning it has yet to begin licensing applications, which could take months with 19 retail and 21 online licenses available.
The Commission has repeatedly stated that all licensees will be announced simultaneously and not done through rolling announcements, meaning the process will drag on for a long time.
Sports Gambling Industry News
Oklahoma
In Oklahoma this week, two bills are about to be heard in the Senate, HB 1047 and HB 1101 aim to legalize sports gambling in the Sooner State. Both bills have the same goal: to legalize sports gambling, but the two bills differ on how.
HB1047 would amend the state's compact with the tribes to give them exclusive rights and allow them to operate Class III slots and roulette. HB1101 would do the same by creating a constitutional amendment, but would only come into effect if HB1047 does not pass or is vetoed by Governor Kevin Stitt. Stitt has stated he will not sign sports gambling legislation that gives the tribes exclusive rights.
While both bills still have to clear some hurdles before a big showdown, reaching the Senate floor is a big step.
Massachusetts
Fanatics was deemed suitable for a full five-year license in Massachusetts after a two-hour meeting with the Massachusetts Gaming Commission. All six of the state's books had been operating with a temporary license and must complete a "durable suitability" review before being granted a full license.
Fanatics was the second book to complete the process, with Massachusetts-based DraftKings being the first. Bally Bet, BetMGM, Caesars, ESPN Bet, and FanDuel still need to complete their review.
Illinois
In Illinois, you may no longer be able to use credit cards to deposit funds into a sportsbook account. The Illinois Gaming Board approved the new rule to try and combat problem gambling, stating that preventing credit card deposits is a "worthwhile policy to encourage responsible gambling and mitigate the potential harms of compulsive gambling."
Research from the University of Kansas shows that sports gambling increases credit card debt. It is also important to note that deposits from a credit card can incur hidden fees, such as deposit fees and cash advance fees from the credit card company.
Banning deposits from credit cards is a no-brainer consumer protection win.
