CFTC nears leadership change, Tush Push lives

Welcome to iGB’s State of the Union, where we delve into the most significant North American sports betting developments from the past week and highlight intriguing stories in the industry.

CFTC Leadership Changes: A New Chapter Ahead

The U.S. Commodity Futures Trading Commission (CFTC) is poised for a transformative period, with key leadership changes on the horizon. During an event in Amsterdam on May 16, 2025, CFTC Acting Chair Caroline Pham announced her impending departure, which will coincide with Brian Quintenz’s confirmation by the U.S. Senate. Shortly thereafter, Democratic Commissioner Kristin Johnson revealed her intention to exit later this year.

In the realm of sports betting, the CFTC has garnered attention due to ongoing litigation involving Kalshi, a notable prediction market. Since late March, Kalshi has successfully obtained two preliminary injunctions, enabling the company to continue its event contracts on sports betting in New Jersey and Nevada. Notably, the CFTC has also withdrawn its appeal in a federal case concerning election betting contracts with Kalshi.

As the CFTC navigates these departures, the remainder of the five-member commission may find itself reduced to a singular authority, significantly impacting regulatory dynamics. The anticipated roundtable on prediction markets, originally scheduled for last month, was postponed without explanation, raising questions about the CFTC’s regulatory approach. Earlier in February, Pham criticized existing anti-innovation policies that hinder the agency’s ability to modernize prediction market regulations.

In an exciting development, Kalshi announced a partnership with Elon Musk’s xAI on May 20, although the collaboration was quickly retracted. Worth noting is Quintenz’s position on Kalshi’s board, along with the recent appointment of Donald Trump Jr. to the board as well.

The ‘Tush Push’: NFL Controversy and Rule Changes

As NFL Owners’ Meetings unfolded in Minneapolis, the future of the controversial “Tush Push” play hung in the balance. A proposal to ban this strategy—which has drawn criticism from proponents of player safety—ultimately failed, ending with a 22-10 vote against the ban. This play, lauded for its near-execution perfection by the Philadelphia Eagles, highlights the ongoing debates regarding competitive advantage and player safety in professional sports.

According to ESPN, both the Eagles and Buffalo Bills executed this play 163 times in the last three seasons, achieving an impressive first-down or touchdown conversion rate of 87%. Despite ongoing discussions around this play, the Eagles’ Super Bowl championship odds remained unchanged at +650.

Additionally, the Detroit Lions withdrew a proposal aimed at re-seeding playoff teams based on overall record. Current rules ensure division champions secure home-field advantage during the Wild Card round, a measure that sparked diverse opinions among team owners.

Maryland’s Significant Tax Reform for Online Sports Betting

This week, Maryland Governor Wes Moore enacted legislation increasing the online sports betting tax rate from 15% to 20%. This tax hike aligns Maryland with other states like Illinois and Ohio that have recently elevated their tax rates since legalizing sports wagering.

Under House Bill 352, the revision allocates 5% of online sports betting gross gaming revenue (GGR) to the state’s general fund, while the remainder funds educational initiatives. It’s noteworthy that retail betting operators will retain the previous tax rate of 15%. Since the legalization of sports betting in December 2021, Maryland has generated over $160 million in tax revenue directed towards its Blueprint for Maryland’s Future Fund.

The tax increase could have been steeper; earlier proposals suggested a doubling to 30%. As other states, including North Carolina and Louisiana, debate similar tax reforms, this move underscores the ongoing evolution of state-level regulation as sports betting gains mainstream acceptance.

Legal Accountability: Ponzi Scheme Disruption in Sports Betting

In a significant legal development, a Las Vegas man, Matthew Turnipseede, was sentenced to 65 months in prison for orchestrating a Ponzi scheme that deceived investors out of millions within the sports betting sector. Turnipseede, who operated multiple sports betting ventures, including Moneyline Analytics, promised investors substantial profits through proprietary algorithms that ultimately proved illusory.

Indicted on 13 counts of wire fraud, Turnipseede misled at least 72 investors, securing over $8 million from their contributions. He reportedly used these funds for personal expenditures, illustrating the darker side of the rapidly expanding sports betting landscape. As part of his sentence, Turnipseede was mandated to repay $4.7 million to the defrauded investors.

Industry Highlights: What You May Have Missed

Stay updated on key developments in the wagering space, including:

• Sporttrade’s Ian Kane’s insights on the role of prediction markets and tribal partnerships.
• Massachusetts showcases impressive year-on-year sports betting growth for April.
• Codere Online takes a stand following a Nasdaq delisting notice.
• A report highlights a rise in illegal sports betting activities in Japan amid Mizuhara’s legal challenges.
• Tennessee reports a 21.7% increase in sports betting gross handle for April.
• Michigan narrowly misses setting an online gambling revenue record for April.
• The Nevada Gaming Commission issues a significant $5.5 million fine to Wynn Resorts amid licensing violations.
• New Jersey’s gambling revenue continues its upward trajectory despite a drop in sports betting.
• Pennsylvania experiences a notable 10.7% revenue increase attributed to iGaming growth.