Letter From America 44

Welcome to the latest Letter From America. We lead this edition with the break-out news that the Ohio Casino Control Commission (OCCC) has stepped into the contentious prediction markets debate. 

Last week, in a thinly-veiled warning, the OCCC put all its licence holders on notice: Offering sporting event contracts in any form–directly or indirectly–will be “taken into consideration” when it “evaluates the continued suitability of a sports gaming licence”, the regulatory body asserted..

And with sporting September–featuring the start of the new American football season; RGEM, Responsible Gambling Education Month, and a slew of other breaking Futures betting news–now upon us, the OCCC legal broadside signals the start of a whole new ball game in the battle to curb the rise of prediction markets in the gaming space.

Prediction Market Saga Continues

Let’s take a closer look, then, at the ongoing prediction markets saga.

In the latest Futures move, Underdog Fantasy Inc. announced yesterday (September 2) that it has teamed up with Commodity Futures Trading Commission-regulated Crypto.com to offer sports event contracts on NFL, NBA and MLB “outcomes”, et al.

Underdog, seemingly unperturbed by the growing legal and regulatory storm, is best known as a Daily Fantasy Sports (DFS) platform, and as such faces comparatively light regulatory scrutiny. 

Currently the company also holds traditional sports betting licences for North Carolina and Ohio, although it is yet to launch in the latter.

Now in what appears to be a clever workaround, the Underdog and Crypto.com collab is offering sports event contracts in 16 states – presumably avoiding those where Underdog already has regulatory agreements, or where sports betting isn’t yet legal, and thus minimising the chance of regulatory backlash.

At least that’s the theory.

“Prediction markets are one of the most exciting developments we’ve seen in a long time,” says Underdog Founder and CEO, Jeremy Levine. “While still new and evolving, one thing is clear: The future of prediction markets is going to be about sports. And no one does sports better than Underdog.”

The Underdog-Crypto platform is already live, and has become the first U.S. prediction market to geofence its products – and offer traditional sports betting, along with event contracts, and DFS within a single app.

Meanwhile In Wisconsin

The Ho-Chunk Nation Tribe–operator of seven Tribal casinos in the state–is fighting to protect its grip on the market by filing a legal challenge that could prevent Kalshi and Robinhood from offering sports event markets on Tribal land. 

The Tribe has accused the duo of violating the Indian Gaming Regulatory Act (IGRA) by offering what it calls “illegal, unregulated wagers” and infringing upon the Tribe’s state compact, which allows it to offer in-person betting on reservation land.

This promises to be a shoot-out for the ages.

Watch this space!

US$30 Billion NFL Football

The American Gaming Association (AGA) has estimated that U.S. bettors will wager a staggering US$30 billion (£22.37bn) on this year’s NFL season.

That’s an 8.5 percent increase on last year and a strong indication the regulated market shows no sign of slowing down.

The NFL season kicks-off tomorrow (September 4) and runs through to Super Bowl LX, scheduled for February 8, 2026. Current champions the Philadelphia Eagles are favourites to retain their crown.

Missouri (Finally) Breaks

As the December 1 sports betting launch date approaches, Missouri licences are being confirmed, with DraftKings and Circa Sportsbook already approved for the two untethered spots.

All other operators must partner with a professional sports team or a casino in the state to launch betting operations – a market expected to generate US$3.4 billion (£2.54bn) in bets in the first 12-months. 

So far, bet365 has teamed up with the MLB’s St. Louis Cardinals, BetMGM has partnered with the well-established Century Casinos, Fanatics with leading casino operator Boyd Gaming, and FanDuel with the rising-star MLS team St. Louis City SC.

Caesars Entertainment, ESPN Bet and Underdog have announced plans to launch, but have yet to confirm partnerships. 

Applications close on September 12.

A Stake Too Far?

And finally, the Los Angeles City Attorney’s Office has filed a lawsuit against Stake.us–owned by the same parent company as international sportsbook and casino Stake.com–and dozens of gaming suppliers featured on the site, including Evolution, NetEnt, and Pragmatic Play.

The suit, filed in California Superior Court, alleges illegal gambling under California’s Unfair Competition Law and False Advertising Law. 

It seeks to shut down the site and recover damages for player losses, along with civil penalties.

In response, Evolution Gaming and Pragmatic Play have cut ties with Stake.us, removing their content from the platform. 

The news comes as pressure intensifies, with AB 831–a bill to ban sweepstakes casinos in the state–advancing out of the Senate Appropriations Committee back to the Senate floor.

Good gaming.

And keep watching this space!