Industry opposition intensified in Las Vegas as legal, congressional and regulatory scrutiny mounted around the fast-growing sector.
Prediction markets dominated the conversation at G2E on Tuesday as some of the casino industry’s most prominent executives joined the American Gaming Association in escalating criticism of the sector.
Away from Las Vegas, the courts and the federal government are also turning their attention to the sector. The U.S. Supreme Court is reportedly considering whether to take up prediction-market cases, a House committee is expanding an insider-trading probe, and the CFTC is reportedly preparing action over promotional practices.
The Big Story: Prediction Markets Dominate G2E Debate
After industry pushback on day one of G2E, day two delivered more debate on the topic. Casino executives, regulators, Tribal gaming leaders, lawmakers and other stakeholders continued debating sports event contracts, with much of the discussion critical of the sector.
American Gaming Association President and CEO Bill Miller dedicated a significant portion of his keynote to the sector, arguing that prediction markets are using a regulatory “back door” to bypass state laws, taxes and Tribal sovereignty. He also argued that their recent legal setbacks suggest their strongest period may be behind them.
MGM Resorts CEO Bill Hornbuckle said the company had been approached about entering prediction markets but declined. He cited regulatory and licensing concerns. Caesars Entertainment CEO Tom Reeg similarly warned that inadequate oversight could produce “something awful” that damages the reputation of the wider gaming industry.
Wynn Resorts CEO Craig Billings took a more neutral stance, saying the company has no stake in the matter. Still, he acknowledged that broader access to betting could ultimately benefit Las Vegas.
The criticism extended beyond casino executives. Nevada Gaming Control Board Chairman Mike Dreitzer joined MGM Resorts Chief Compliance Officer Stephen Martino, attorney Daniel Wallach and AGA Vice President Tres York for a separate Tuesday panel comparing oversight and compliance across traditional gaming and prediction markets.
Dreitzer raised concerns about underage access and activity in states where sports betting remains prohibited.
Another Tuesday panel broadened the opposition further.
UNITE HERE President Gwen Mills, Mashantucket Pequot Tribal Nation Chairman Rodney Butler, and Rep. Steven Horsford joined Miller for a discussion focused on coordinating the gaming industry’s response. The session brought together organized labor, Tribal gaming and Congress around concerns including jobs, Tribal sovereignty and regulatory authority.
The Daily Wire
Supreme Court Considers Prediction Market Cases
The Supreme Court could soon agree to hear one or more prediction-market cases as it considers several petitions involving sports event contracts ahead of its 2026-27 term.
The New Jersey Division of Gaming Enforcement petitioned the court after the Third Circuit ruled in Kalshi’s favor. At the same time, Robinhood and Crypto.com filed petitions following the Ninth Circuit’s August ruling rejecting their preemption arguments in Nevada.
The court has not agreed to hear any of the cases. But prediction markets are among several major issues the justices are weighing as they fill out the upcoming term’s docket.
House Expands Prediction Market Insider-Trading Probe
The House Oversight Committee has expanded its investigation into potential insider trading on prediction markets.
Committee Chair James Comer sent letters on Tuesday to Hyperliquid, Crypto.com and Aristotle Exchange/PredictIt, seeking information about identity-verification procedures and controls designed to detect and prevent trading based on nonpublic information.
The committee launched its investigation into Kalshi and Polymarket in May and has since received nearly 1,000 documents and participated in five briefings, according to CNBC.
CFTC Reportedly Preparing Prediction Market Promotion Sweep
The CFTC is looking into prediction-market promotional programs amid concerns that some incentives may be misleading, according to Front Office Sports.
The review reportedly centers on promotions for traders and market makers and could lead to targeted examinations or enforcement actions. There’s no mention of which companies could be affected. The agency warned exchanges in August that incentive programs remain subject to Commodity Exchange Act requirements, including rules covering market integrity and fair access.
The advisory specifically highlighted potentially problematic marketing around concepts such as “risk-free” trades, unlimited rebates and guaranteed profits.
Kalshi Discussing New $1B Raise at $40B Valuation
Kalshi is in advanced discussions to raise approximately $1 billion at a valuation of around $40 billion, according to Reuters.
The outlet reports that Sequoia Capital and Wellington Management are in talks to lead the round. Tiger Global and Dragoneer Investment Group are among investors discussing participation. The potential valuation would represent another sharp increase for Kalshi, following a $1 billion funding round in May that valued the company at approximately $22 billion.
Reuters also reported that Kalshi is looking beyond its prediction markets roots to become a broader trading platform that would compete with established derivatives exchanges, including CME Group and Intercontinental Exchange.
Polymarket Adds Another High-Profile Executive
Polymarket has hired longtime Goldman Sachs executive Lisa Mantil as Head of Institutional Growth as it continues to build out its senior leadership team.
Mantil spent 27 years at Goldman Sachs and will focus on relationships with investment managers, trading firms, banks and corporate clients as Polymarket looks to attract more institutional liquidity.
The appointment follows several other high-profile hires in recent weeks. Polymarket named former Amazon and Delta Air Lines finance chief Warren Jenson its first CFO in September and hired Bird founder and former Uber and Lyft executive Travis VanderZanden as Chief Growth Officer in August.
The company has also appointed former ICE and NYSE government affairs executive Rob Eskridge to lead its U.S. government relations.
DraftKings CEO Defends Responsible Gaming Approach
DraftKings CEO Jason Robins defended the company’s responsible gaming practices following recent investigations by The New York Times and ProPublica that examined how the sportsbook identifies and interacts with potentially vulnerable customers.
The Times focused on DraftKings’ use of AI to identify customers likely to lose more after receiving promotions.
Speaking at the SBC Summit in Lisbon, Robins rejected suggestions that DraftKings benefits from customers betting beyond their means. “That could not be farther from the truth,” he said, arguing that responsible gaming is embedded in the company’s culture.
Robins said DraftKings provides customers with tools, including deposit limits and cool-off periods, and, in more serious cases, blocks accounts it believes are being used irresponsibly.
ProPublica separately reported that one of its journalists received VIP outreach while intentionally exhibiting behavior designed to resemble problem gambling.
Mattress Mack Takes $516K Astros Position on Kalshi
Jim “Mattress Mack” McIngvale has brought one of sports betting’s most recognizable promotional strategies to prediction markets.
The Houston furniture owner took a $516,000 position on Kalshi tied to the Astros winning the World Series, with a potential return of approximately $13 million. According to the New York Post, Kalshi gave Mack better odds than sportsbooks.
Mack is known for hedging bets tied to major sporting events at his Houston furniture store. If he wins, he refunds eligible customers their purchases.
The trade is also notable because McIngvale can access Kalshi from Texas, where traditional sports betting remains prohibited, rather than traveling out of state to make the wager. Also, sports betting could lose one of its most famous bettors, who regularly draws media attention.
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