AR and IL Join List of States Opposed to Prediction Markets

The list of states that are working against the rise of sports prediction markets just got a little longer. 

Officials from the states of Arkansas and Illinois have officially declared that sports prediction markets are illegal forms of sports betting. They both claim that these operators are required to obtain state sports betting licenses to offer these markets, but they have not done so.

The Office of the Attorney General for Arkansas shared that opinion with Senator Tim Griffin, who had requested feedback on the growing industry.

“The acts you describe meet the Supreme Court’s definition of gambling and gaming: a participant is risking money on a chance that some future event occurs,” Attorney General Tim Griffin shared in the opinion.

The Illinois Gaming Board took things a step further by sending out a letter to DFS and sportsbook operators in the state. The letter warned them that they could lose their state licenses if they offered sports prediction markets, which the regulator has deemed illegal.

“It is unlawful to knowingly establish, maintain, or operate an Internet site that permits a person to play a game of chance or skill for money or other thing of value, or that permits a person to make a wager upon the result of any sport, game, contest, political nomination, appointment, or election via the Internet without an IGB-issued license,” the letter from the IGB read.

New York Files Cease & Desist Against Kalshi

The Empire State isn’t wasting time with letters; instead, it's taking the issue straight to the US legal system. The New York State Gaming Commission sent a cease-and-desist letter to Kalshi, ordering it to halt operations in the state. Kalshi quickly filed a lawsuit against the regulator, arguing that it was using illegal tactics to push the operator out. 

New York is the largest sports betting market in the country, making this fight critical for Kalshi to win. While large markets like Texas and California have yet to take similar action, their actions against the sweeps industry and the lack of legal sports betting suggest this will likely change.