Kalshi Notches TRO; Stocks Get Trump Bump

Welcome to iGB’s State of the Union, your comprehensive overview of the most significant stories and trends in North America’s sports betting landscape over the past week.

Kalshi Secures Legal Victory Against Nevada Gaming Control Board

This week, Kalshi—a prediction market facing multiple cease-and-desist orders—celebrated a noteworthy legal win. On Tuesday, April 8, U.S. District Judge Andrew Gordon issued a preliminary injunction against the Nevada Gaming Control Board (NGCB). This ruling prohibits the NGCB from enforcing an order that claimed Kalshi was unlawfully offering sports wagering within Nevada’s borders.

Kalshi is currently awaiting guidance from a notable roundtable convened by the U.S. Commodity Futures Trading Commission (CFTC) to determine whether their event contracts are similar enough to constitute sports gambling.

“Quality advocacy wins the day. Nevada’s flawed brief allowed Kalshi to define the narrative surrounding both the factual and legal issues,” commented Andrew Kim (@akhoya87) regarding this favorable ruling on Twitter.

In a 24-page document, Nevada Attorney General Aaron Ford argued that Kalshi did not prove Congress intended to preempt state gaming laws under the Commodity Exchange Act (CEA). However, Judge Gordon found that Nevada’s regulatory agencies lack the jurisdiction to rule on Kalshi’s activities as they are permitted under federal law. The injunction also bars the NGCB and the Nevada Gaming Commission from pursuing any civil or criminal action against Kalshi for the contracts it offers on a CFTC-designated market.

In response to this ruling, Kalshi expressed gratitude for the court’s careful examination of the issue and reaffirmed its status as a CFTC-regulated exchange.

Kalshi Expands Leadership with Appointment of Former AGA Executive

In a strategic move to bolster its corporate development, Kalshi appointed former American Gaming Association (AGA) executive Sara Slane as its new Head of Corporate Development. Slane, who served as interim CEO of the AGA and testified before Congress on sports betting in 2018, brings substantial industry expertise to the role.

During March Madness, Kalshi executed over $500 million in event contracts primarily focused on college basketball, outperforming several commercial sportsbooks. Data indicates that at least 50% of these contracts were traded in-game, showcasing the platform’s robust engagement levels.

It is worth noting that Kalshi, along with Robinhood and Crypto.com, has faced cease-and-desist orders from Maryland—the fifth state to issue such directives within a month—indicative of the regulatory scrutiny that prediction markets are incubating.

Gambling Stocks Surge Following Tariff Pause

The gambling sector experienced volatility as US President Donald Trump’s imposition of tariffs led to significant stock declines for the week ending April 4. Industry giants witnessed drops up to 15% as economic uncertainly loomed over foreign trade with China.

However, a 90-day suspension of most reciprocal tariffs announced on April 9 spurred a remarkable stock rally, propelling Nasdaq Composite index gains to its best day in over two decades. Numerous gaming stocks, including Bally’s, which surged 33%, and MGM Resorts and Wynn, experiencing increases of 16% and 15%, respectively, benefitted from this positive shift.

Despite this upswing, day-to-day fluctuations remained, drawing parallels to the drastic downturns observed during the early stages of the COVID-19 pandemic when major gaming stocks fell sharply.

“As a sector dependent on a global supply chain, we are closely monitoring these developments and engaging with key stakeholders to foster ongoing dialogues that enable the economic growth our industry contributes to communities across the United States,” remarked Joe Maloney, AGA’s Senior Vice President of Strategic Communications.

MGC Approves Return of $106K in Wagers from Deceased Patron

The Massachusetts Gaming Commission (MGC) unanimously approved DraftKings’ request to void a series of futures wagers placed by a deceased patron. The decision followed notification from the deceased person’s spouse’s attorney, indicating that the patron had made nine wagers totaling $106,100 on the Boston Celtics’ chances to win the NBA Championship or the Eastern Conference title for 2025.

According to 205 CMR 238.35(2), the MGC reviews and authorizes requests to cancel or void specific types of wagers. Consequently, the funds will revert to the patron’s account for estate withdrawal, while DraftKings asserted that honoring such requests enhances public trust and sustains industry integrity.

At the time of the hearing, the Celtics had odds of +215 at DraftKings, illustrating potential lucrative opportunities in the betting market.

Alabama Sports Betting Bill Features NIL Provision

Efforts to legalize sports betting in Alabama remain alive. A recent gambling bill faced defeat in a Senate committee, but a competing measure, HB 490, continues to progress as the May 15 deadline approaches. This bill aims to legitimize sports wagering, establish a state lottery, and create the Alabama Gaming Commission (AGC).

Notably, Alabama is among only five states without a state lottery. Proposed by Rep. Jeremy Gray, the bill seeks to impose a 10% tax on sports wagering revenues, allocating funds to the state’s general fund and education trust, as well as creating a new NIL (Name, Image, and Likeness) trust fund for high school athletes.

The AGC would form an NIL oversight committee of five prominent educational officials tasked with regulating NIL compensation, ensuring 50% of each athlete’s earnings go to the state comptroller, advocating against fraud and unethical agreements while protecting student-athletes from gambling-related harm.

In Case You Missed It on iGB

• Kansas sports betting may face interruptions due to new budget provisions.
• New York’s online sports betting handle surpassed $23.94 billion for the 2024-25 fiscal year.
• Compliance teams are navigating challenges post-Historic RWLV settlement.
• The Hawaii Senate has returned a sports betting bill to the House for reevaluation.
• The NCAA has ramped up its responsible gambling initiatives amid ongoing college basketball scandals.

In related news, Duke player Cooper Flagg mentioned receiving hostile messages regarding betting projections prior to the Sweet 16, highlighting the pressures on players in a highly scrutinized betting environment.

As the gaming landscape continues to evolve, keeping abreast of regulatory changes, market dynamics, and emerging trends is essential for stakeholders immersed in the sports betting arena.