State enforcement triggers new prediction-market pullbacks. Meanwhile, a Tribe takes the Kalshi fight to the Supreme Court, and lawmakers continue to press FanDuel over its VIP program.
Connecticut officials say three prediction market operators have withdrawn from the state, while PrizePicks has suspended its Team Picks sports event contracts in Missouri.
Elsewhere, the Cabazon Band of Cahuilla Indians urged the Supreme Court to review New Jersey’s Kalshi case, Sen. Richard Blumenthal and two House lawmakers demanded more information from FanDuel over personalized celebrity videos sent to VIP customers, and South Carolina’s gubernatorial candidates split over casino expansion.
The Big Story: Prediction Markets Retreat in Connecticut, Missouri
Connecticut’s Department of Consumer Protection told CT Insider that ProphetX, Gemini, and Webull have withdrawn following cease-and-desist orders issued last month to nine prediction market operators.
The agency says it remains in communication with Polymarket, Coinbase, Crypto.com, Robinhood, Novig and Underdog. Shortly after the letters, Robinhood asked to intervene in the CFTC lawsuit against the state.
“Our actions sent a clear message,” DCP Commissioner Bryan Cafferelli said. “We will not tolerate illegal prediction market activity that preys upon the most vulnerable consumers.”
There is some dispute over the state’s list. Prediction-market analyst Mick Bransfield wrote on X that ProphetX has not pulled out of the state.
Meanwhile, in Missouri, PrizePicks notified customers that it has suspended new Team Picks, its sports event-contract product, “due to updated legal requirements for prediction markets in Missouri.” Existing Team Picks remain active, and Culture Picks remain available. PrizePicks’ traditional fantasy sports product is not affected.
PrizePicks has informed Missouri customers that its sports event contract offerings, "team predictions," have been suspended in the state.
— RLinnehanSR (@RLinnehanSR) October 6, 2026
Users can withdraw funds at any time, but no new team picks will be accepted in Missouri.
Submitted entries will remain active. pic.twitter.com/gOE8gNpGa4
The move follows cease-and-desist notices from Missouri Attorney General Catherine Hanaway to Kalshi, Polymarket, Robinhood, Underdog, Novig and Crypto.com. PrizePicks was not among the companies that received a notice.
The Daily Wire
Cabazon Band Urges Supreme Court to Reverse Kalshi Ruling
The Cabazon Band of Cahuilla Indians has filed an amicus brief supporting New Jersey’s petition to the Supreme Court to review the Third Circuit’s ruling in favor of Kalshi.
The Tribe argues that allowing Kalshi to offer sports contracts free from state and Tribal gaming regulation threatens rights granted under the Indian Gaming Regulatory Act, including Tribes’ “exclusive right to regulate gaming activities on Indian lands.”
Cabazon says sports betting is not authorized on its reservation. It argues that the Third Circuit’s reasoning could have broader consequences for Tribal gaming nationwide.
The brief asks the Supreme Court to review and reverse the decision, citing in part the Ninth Circuit’s more recent rulings rejecting Kalshi’s preemption arguments. It notes that Tribal gaming generated $46.2 billion in revenue in 2025.
Lawmakers Press FanDuel for VIP Celebrity Videos
Sen. Richard Blumenthal and Reps. Paul Tonko and Valerie Foushee are escalating their inquiry into FanDuel’s VIP program. They demanded copies of, and additional information about, personalized celebrity videos sent to high-value customers.
The lawmakers’ Oct. 6 letter follows FanDuel’s disclosure last month that it sent “approximately 30 such videos of athletes and entertainers over the last two years” as a “token of appreciation for a customer’s loyalty.”
FanDuel has said it has not used the messages to induce customers to continue gambling. However, the lawmakers argue that the claim is contradicted by the Bryce Harper video sent to a bettor who had lost $1.5 million on the platform.
They are asking FanDuel to provide every personalized video and related details. That includes how much each recipient had wagered and won or lost, why the customer was selected and whether the recipient had previously taken steps to limit their gambling.
The company has until Oct. 20 to respond.
South Carolina Governor Candidates Split on Casino Gambling
South Carolina gubernatorial candidates Alan Wilson and Jermaine Johnson reiterated their opposing positions on casino gambling during Tuesday’s debate.
Asked whether they would support allowing casinos if voters approved the issue through a statewide referendum, Johnson indicated that he would, while Wilson did not. Previously, Wilson pledged to veto casino legislation, while Johnson has said he would consider it with substantial safeguards.
South Carolina does not allow voter-initiated referendums. The issue must pass through the Legislature before it can be placed on the ballot. The earliest such a vote could occur would be November 2028.
South Carolina lawmakers considered casino legislation earlier this year, but the effort failed to gain traction. The Legislature has also discussed online sports betting, which Wilson has indicated he is more open to, but with little success. Current Gov. Henry McMaster has been a vocal opponent of gambling expansion and has repeatedly threatened to veto casino legislation.
New Jersey, Ontario Regulators Issue Sportsbook Fines
The New Jersey Division of Gaming Enforcement fined BetMGM $72,000 for accepting wagers on prohibited or unapproved events and ordered the operator to disgorge another $8,204.49. The regulator also fined bet365 $33,000 for failures to comply with self-exclusion requirements. FanDuel, meanwhile, received a fine of $5,000 for failing to comply with a directive during an investigation into suspicious betting activity.
Separately, Ontario’s Alcohol and Gaming Commission fined theScore Bet C$200,000 ($140,000) for showing a customer two cash-out offers on a C$1,000 parlay and failing to honor them. The offers were worth about C$380,000 and C$100,000. The AGCO said neither was actually achievable and imposed the maximum available monetary penalty.
Stake Sets Alberta Launch for Oct. 12
Stake continues to expand into regulated markets after receiving conditional approval to enter Alberta’s online gambling market, with a launch planned for Oct. 12.
The operator is expected to leave the province’s previously unregulated market as part of the transition. Its planned launch remains subject to completing an operating agreement with the Alberta iGaming Corporation. Alberta requires operators transitioning to the regulated market to cease unregulated operations by Oct. 13. The regulated market launched on July 13 and currently has around 35 live platforms.
The Alberta expansion would add another regulated jurisdiction for Stake, which has long been one of the more prominent offshore, or gray-market, gambling brands serving Canadian players. The operator has also expanded recently across Latin America and Europe. One of its best-known ambassadors is Canadian rapper Drake.
ProphetX Files Markets on Rival Prediction-Market Trading Volume
ProphetX is looking to let users trade on the growth of rival prediction markets.
CFTC filings dated Oct. 6 show ProphetX self-certified event contracts tied to the monthly notional trading volume of Polymarket US, DKeX and Rothera. One contract asks whether Polymarket US will exceed $10 billion in November volume, while others set thresholds of $4 billion for DKeX and $2 billion for Rothera.
It is not ProphetX’s first attempt at the category. CFTC records show an August filing for a Kalshi monthly-volume product was later withdrawn.
Polymarket Begins Protocol V2 Migration
Polymarket has begun migrating integrations to Protocol V2, introducing new tokens and smart contracts for trading, position management and market resolution.
The company says V2 orders will use its ExchangeV3 infrastructure, while position balances and operations such as splitting, merging and redemption will move to new contracts. Existing holdings under Polymarket’s current Conditional Token Framework will not be automatically converted.
For ordinary Polymarket app and website users, however, no technical migration is required beyond completing any approval prompts that appear on the platform.
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