Digital Wager Wire highlights the most significant events affecting the domestic and international sports betting and gaming industries each week throughout the year.
AGA and IGA Unite Against Prediction Markets
The American Gaming Association (AGA) and the Indian Gaming Association (IGA) typically hold opposing positions in negotiations. The AGA is the gaming industry lobbyist for commercial casinos and mobile sportsbooks, while the IGA is an organization that jealously guards the tribes’ gaming exclusivity that is protected in many state compacts and agreements.
However, a common enemy can unite the unlikeliest allies, and that is precisely what is happening as the prediction market platforms like Kalshi, Polymarket, and Crypto.com are operating in all 50 states under the federal licensing of the Commodity Futures Trading Commission (CFTC) and offering sports event contracts, mirroring many of the bets found at retail and mobile sportsbooks.
Prediction Markets Under Fire
Although several states have issued cease-and-desist letters while legal battles rage in several jurisdictions, the prediction platforms continue to operate in the sports betting industry, much to the chagrin of most mobile commercial and tribal sportsbooks.
However, industry powerhouses DraftKings and FanDuel have both adopted an “if you can’t beat’em, join’em” mentality and have launched their own prediction platforms, but only in states that have not legalized licensed sports betting.
Recently, the AGA and IGA penned a joint letter to Congress, decrying the prediction market platforms and urging lawmakers to take “timely congressional action” to facilitate a ban on their practice of offering sports event contracts.
The dual organizations blame inaction by the CFTC and are hoping this united legislative route will effectuate an end to prediction markets cannibalizing at least a portion of the sports betting revenue that would belong to members of both associations.
Alberta Accepting Online Gaming Applications
PlayAlberta is the only gaming platform in the province, but its less-than-stellar reputation has caused the province to seek out third-party gaming platforms that are expected to increase the overall traffic and boost tax revenues. Although PlayAlberta made $35 million more than last year, reports are that it is only capturing 23% to 32% of the market.
“For Albertans who choose not to gamble, the best option is to not start. With unregulated iGaming widely available in our province, it is our responsibility to step in, regulate the market, and hold private providers to the highest standards to protect Albertans, particularly our youth,” said Dale Nally, the minister of Service Alberta and Red Tape Reduction.
Although the companies requesting applications have not been revealed, it is a good bet that BetRivers will be among those that will likely enter Alberta’s online gaming market, based on comments made by its parent company’s CEO, Rush Street Interactive’s Richard Schwartz.
“Regulations in that jurisdiction were published just two days ago and yesterday, so we have a much more clear understanding of what that’s going to require, and things are moving along nicely in that jurisdiction (Alberta) for a launch later this year,” Schwartz said.
