State of the Union: Kalshi wins injunction in Nevada; stocks receive Trump bump, more
Kalshi scores win with Nevada injunction
For a prediction market that has been besieged by state cease-and-desist orders over the last month, Kalshi notched a slight victory this week.
On Tuesday (8 April), US district court judge Andrew Gordon granted Kalshi a preliminary injunction against the Nevada Gaming Control Board (NGCB). The injunction prevents the NGCB from imposing the order against Kalshi, contending that the site illegally offered sports wagering across the state.
As with other prediction markets, Kalshi is awaiting a closely watched roundtable from the US Commodity Futures Trading Commission (CFTC) for clarity on whether sports event contracts mimic sports gambling.
In a 24-page filing, Nevada attorney general Aaron Ford argued that Kalshi failed to demonstrate that congress, through the Commodity Exchange Act (CEA), intended to preempt Nevada state gaming laws under the supremacy clause of the constitution.
However, Gordon ruled that Nevada’s regulatory agencies have no jurisdiction to decide that Kalshi’s conduct violates state law given that the activities are still legal under federal law.
The injunction enjoins the NGCB and the Nevada Gaming Commission from pursuing civil or criminal prosecutions against KalshiEX LLC for offering event-based contracts on a CFTC-designated market.
“We are grateful for the court’s careful attention to this matter and recognition of Kalshi’s status as a CFTC-regulated exchange,” Kalshi wrote in a statement.
Kalshi adds former AGA exec
Also this week, Kalshi appointed former American Gaming Association executive Sara Slane as head of corporate development. Slane, a former interim CEO of the AGA, testified at a congressional hearing on sports betting in 2018.
Kalshi handled more than $500 million (£382.8 million/€441.9 million) in event contracts on college basketball during March Madness.
The platform appeared to post a larger handle than most commercial sportsbooks, data from various industry reports indicates. At least 50% of the college hoops contracts were traded in-game, according to Casino Reports.
Earlier in the week, Maryland issued cease-and-desist orders to Kalshi, Robinhood and Crypto.com. Maryland became the fifth state to send a C&D letter to Kalshi over the last month.
Gambling stocks rally on tariff pause
The imposition of unprecedented tariffs by US president Donald Trump sent stocks tumbling for the week ended 4 April, as domestic equities markets suffered their worst two-day loss in five years.
Top names in the gambling industry were not spared, as some companies fell as much as 15% on uncertainty related to foreign trade with China and the threat of recession. But Trump’s 90-day pause on most reciprocal tariffs triggered a rally on 9 April, sending the Nasdaq Composite index to its best day since 2001.
At least a dozen gaming stocks posted double-digit gains on Wednesday, led by Bally’s which spiked 33% on the session. Two stocks with Macau exposure, MGM Resorts and Wynn, jumped 16% and 15%, respectively. On the online side, Flutter and DraftKings each posted gains of 11%+.
The rally, however, proved to be short-lived as the stocks pulled back on Thursday (10 April) in line with the major indices. The industry is looking to avoid the pitfalls of the 2020 Covid pandemic when a bevy of major gaming stocks fell precipitously, dipping into the single digits.
“As an industry reliant upon a global supply chain, we are actively monitoring developments and we are engaged with multiple stakeholders in advocating for continued dialogue with key trade partners that enable the economic growth and impact our industry provides in communities across the US,” AGA’s senior vice president of strategic communications, Joe Maloney, told iGB.
MGC approves return of $106K in bets from deceased patron
The Massachusetts Gaming Commission (MGC) unanimously approved a request from DraftKings on Thursday to void a series of futures wagers from the account of a deceased patron.
DraftKings notified the MGC on 7 March regarding a request from an attorney representing the spouse of a deceased account holder. The patron made nine wagers on the Boston Celtics to either win the 2025 NBA Championship or the 2025 Eastern Conference title for a total of $106,100. DraftKings faced a total liability of $384,730 on the wagers.
Pursuant to 205 CMR 238.35(2), the MGC is responsible for reviewing and authorising requests to cancel or void wagers of a specific type, kind or subject.
Based on the ruling, the funds will be returned to the deceased patron’s account and made available for estate withdrawal.
DraftKings told the MGC that honouring such requests in exceptional circumstances strengthens public trust and upholds industry integrity. As of Thursday night, the Celtics had odds of +215 at DraftKings to repeat as NBA champions.
Bama sports betting bill contains NIL earmark
A bid from a select group of Alabama legislators to bring sports betting to the state isn’t dead yet.
While a gambling bill recently died in a senate committee, a competing one in the house remains active ahead of a 15 May deadline. The bill, HB 490, seeks to legalise sports wagering, create a state lottery and establish an Alabama Gaming Commission (AGC). Alabama is one of only five states without a state lottery. Authored by Representative Jeremy Gray, the bill was referred to the house committee on economic development and tourism.
The bill calls for a 10% tax on revenues generated from sports wagering. The taxes generated would be apportioned to the state’s general fund as well as an education trust fund. The remaining 20% would head to a newly created NIL (name, image and likeness) trust fund for high school athletes.
Under the bill, the AGC would create an NIL oversight committee composed of five prominent education officials across the state. The state would hold a portion of the NIL compensation in the trust, with 50% of all compensation received by each student athlete remitted to the state comptroller for deposit into the fund. The proposed Alabama Sports Wagering Control Act aims to prevent fraud, unethical NIL agreements and gambling-related harm of high school athletes.
ICYMI on iGB
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New York online sports betting handle tops $23.94 billion in 2024-25
Compliance teams weigh competing factors in the wake of historic RWLV settlement
Hawaii senate sends sports betting bill back to house for potential passage
NCAA intensifies responsible gambling campaign as college hoops scandals linger
Star accepts AU$300 million takeover bid from Bally’s
North Carolina sports betting handle hits record $685 million in March
Nevada’s $10.5 million fine on Resorts World has the Strip on alert. Compliance teams are now crunching the true cost of staying clean https://t.co/FkNAUj0pUn
— iGB (@iGamingBusiness) April 10, 2025: @MattRybaltowski