This week, America’s gaming world will again focus on more legal cases involving prediction markets, with court hearings and new lawsuits expected. Elsewhere, Bally’s is also moving closer to a takeover of Evoke, and the NFL will be in Brazil, putting focus on the country’s gambling laws.
Two big events are also on the horizon for next week, with the American Gaming Association hosting G2E in Las Vegas and the SBC Summit in Lisbon.
Kalshi In Court Against Tribes, Again
One of the big stories from last week was the Ninth Circuit ruling against Kalshi and in favor of two California tribes.
The 3-0 unanimous decision in favor of the Blue Lake Rancheria and Chicken Ranch Rancheria of Me-Wuk Indians could embolden more tribes to take action against prediction markets.
In New Mexico, four tribes have already sued Kalshi, and a hearing is set for this Wednesday. The tribes filed a lawsuit in May against the company, making similar claims to those of the California tribes./p>
The tribes will almost certainly cite the Ninth Circuit ruling, which firmly declared Kalshi’s sports markets are sports gambling
On Thursday, a motion hearing is scheduled in California regarding the amended complaint filed by the tribes against Kalshi. With the Ninth Circuit’s ruling, the tribes will likely seek an order to geoblock Kalshi from tribal lands.
Lawsuits Expected In Missouri
There looks to be no let-up in the legal battles between Kalshi and the states. Last week, Missouri’s Attorney General Catherine Hanaway sent cease-and-desist letters to prediction market operators.
“Companies cannot repackage sports bets as ‘event contracts’ to avoid Missouri law. We will enforce the rules voters approved and protect consumers,” said Hanaway in a press release.
Kalshi, Polymarket, Novig, Underdog, Crypto.com, and Robinhood all received the orders, with the state noting failure to comply will result in enforcement action.
Kalshi has usually responded to cease-and-desist letters by suing in federal courts. Hanaway also said she expects companies to take legal action.
The Commodity Futures Trading Commission (CFTC) may also defend the licensed operators by filing its own lawsuit this week.
Novig Response Due In New York
Upon launching its prediction market platform, Novig filed lawsuits in five states: New York, Washington, Wisconsin, New Mexico, and Massachusetts.
The company may be preparing similar action in Missouri, and its lawyers must also file a brief in New York by Thursday this week. Novig is seeking a preliminary injunction to prevent New York authorities from pursuing any action against the company.”
Last week, a judge granted lawyers representing 24 tribes permission to file an amicus brief in the case, which could also be filed this week.
Bally’s Nears Evoke Takeover
Outside the world of prediction markets, Bally’s will continue working on its deal to take control of Evoke, the group behind the betting brands William Hill and 888.
Shareholders of Bally’s Intralot, the Greek-listed company controlled by the casino operator, approved the takeover last week. This means the takeover now just needs to secure a few more regulatory approvals before it can proceed.
NFL In Brazil Puts Focus On Country’s Gambling Laws
On Sunday, the Baltimore Ravens and Dallas Cowboys will meet at the famous Maracanã in Rio de Janeiro. It is the third year in a row that Brazil has hosted an NFL game.
The event is expected to attract significant betting interest within the country, where gambling is a hot topic in the run-up to the next election.
The first round of the election will take place on October 4. Current President Luiz Inácio Lula da Silva (Lula) is campaigning on a promise to rein in what he calls the predatory gambling industry.
He is reportedly considering a provisional measure that could ban online casinos in the country and impose further restrictions on sports betting, although the final scope has yet to be settled. Brazil has already blocked Kalshi, Polymarket, and other prediction market platforms.
