Missouri Wagering Launched Delayed
On Feb. 21, iGB exclusively learned, Missouri’s Secretary of State (SOS) said he is rejecting the “emergency” status for sports betting rules. The regulator says this will delay the proposed June launch.
SOS Denny Hoskins is rejecting the proposed emergency sports betting rules filed by the Missouri Gaming Commission (MGC). And the commission says it is pushing the sports betting go-live date to the fall.
Saying that the the situation does not warrant an “emergency” rulemaking designation, Hoskins told iGB that the “proposed emergency rules were intended to address specific aspects of gaming regulations. However, following a thorough review, it was concluded that the matter does not meet the criteria for emergency rulemaking according to Missouri law.”
Hoskins said the proposed emergency rules, which were sent to Gov. Mike Kehoe on Jan. 27, could “proceed through the standard rulemaking process which includes the opportunity for public input.”
Missouri law reads that an emergency rule is only appropriate if there is “immediate danger to public health, safety, or welfare; or the rule is necessary to preserve a compelling governmental interest that requires an early effective date.”
Joe Brennan ‘Stepping Away’ From Prime Sports
Writing that “change is necessary” in the legal sports betting landscape, Joe Brennan Feb. 23 announced via LinkedIn that he is “stepping away” from the sharp betting site he helped found. Prime Sports is known for its “old-school” ways, including taking high wagers. Brennan was instrumental in the fight to get the Professional and Amateur Sports Protection Act overturned in 2018.
Brennan wrote of his frustration that “for every dollar wagered with regulated operators, at least one dollar is still being bet with unregulated ones.” He plans to go out into the gambling world and listen to ideas and thoughts as he begins to form a plan for how to effect change.
“Many of you have generously shared your insights, and if I happen to reach out to you, I’d be grateful for a few moments of your time to listen to your thoughts on what’s needed in this space,” he wrote. “I’m not selling anything—just listening and trying to step outside my own experiences. … This industry needs more—more differentiation, more competition, more protection, more innovation, and more participation. Above all, we need to be good shepherds.”
Nevada’s Titus: More Enforcement Needed for Prediction Markets
Nevada Rep. Dina Titus weighed in Feb. 21 with her thoughts on allowing prediction markets to allow sports betting. In a letter to Commodity Futures Trading Commission (CFTC) Acting Chairwoman Caroline D Pham, Titus wrote, “This year, platforms have started to offer contracts on sporting events. Event contracts on sporting events bring this relatively new industry directly into conflict with state-regulated gaming operators.”
Prediction sites are not regulated in the same way that legal sports betting platforms are in U.S. states. Kalshi won a legal victory to be able to offer the contracts last fall, though the company is still in court. It also offers election betting, including on the November presidential election.
But when it comes to sports, Kalshi and Polymarket are among the platforms that have begun offering betting markets, ranging from betting on the Super Bowl to selecting winners of tennis tournaments. The gambling industry is opposed to this, saying consumers aren’t properly protected and that the sites are not subject to the same stringent regulations that traditional betting sites are.
“Permitting prediction contracts on sporting events has several troubling effects that the Commission should address before issuing any rulemaking,” Titus wrote, per Casino Reports. “Prediction contracts on sports create a backdoor way to legalise sports betting in states that have not authorised it. The regulation and legalisation of sports betting have traditionally been dealt with at the state level in the United States.”
Fake News Turns Into Big Win
There’s been much discussion about how the rise of prediction markets has the potential to influence politics. But one bettor on Kalshi proved that politics can have an impact on trading. And that there is, in fact, some skill involved.
“LanceUpper,” according to PredictionNews, had been following and studying politics for 10 years. When a quote from Sen. Susan Collins saying she would support Kash Patel as Donald Trump’s FBI nominee began circulating, LanceUpper believed it was false. He acted on that belief and bought more than 105,000 contracts for $2,683 on Collins voting against Patel. His hunch paid off, and LanceUpper was paid $105,236. He bought the contracts for two cents each Feb. 13, a week before the vote.
Collins had already voted against Pete Hegseth for Secretary of Defense, and for Robert Kennedy Jr. for HHS Secretary and Tulsi Gabbard for Director of National Intelligence. On Feb. 20, Collins wrote on twitter that she would vote against Patel. At that point, her odds of voting yes, fell to five percent from 85 percent in a single minute.
“Collins’ vote showed how prediction markets can deliver big wins for traders who are willing to go against the crowd,” PredictionNews wrote. “Her vote also shows how small amounts of uncertainty can still rile prediction markets.”
The Collins vote is a lesson that sports bettors can apply, as well. Kalshi currently offers multiple markets on basketball, hockey, tennis and other sports. For example, “Will there be an African F1 Grand Prix announced this year?” A bettor in the know could trade in and out of that market as new information becomes public and profit.
The vote also showed how quickly prediction markets – some of which offer sports betting – can shift based on new information.
