Welcome to the New Year and the first Letter From America of 2026. We’re kicking-off by diving straight into the Venezuela prediction market story that has gaming legislators and the wider gambling world a-buzz with accusations of Insider Trading.
Polymarket’s US$400,000 Question?
Just days into the new year, a mystery Polymarket trader turned roughly US$32,000 (£23,703) into a US$400,000 (£296,310) payday by betting on the removal of Venezuelan President Nicolás Maduro, raising questions and eyebrows over Insider Trading.
In response, on Monday (January 5), U.S. Representative Richie Torres (D‑NY) quickly introduced the Public Integrity in Financial Prediction Markets Act, which seeks to prevent federal officials from trading on prediction markets if they are party to non‑public information.
The presumption behind the rapidly drafted bill is clear: This scenario likely required privileged information.
Looking for more juice? Get the full scoop here.
Google Relaxes Ad Rules
Keeping on point: Google is opening the door to prediction markets by permitting them to advertise on its platform, starting January 21.
To qualify, platforms must be designated as a Designated Contract Market by the Commodity Futures Trading Commission, or authorised as a third-party brokerage by the National Futures Association. They must also pass Google’s own certification criteria and compliance checks, which include adherence to “all local laws, financial regulations and industry standards”.
This is yet another stamp of legitimacy for the seemingly unstoppable prediction markets – at least for now.
Old News, New Hacks
Speaking of legitimacy, yesterday (January 7), Dow Jones announced that it is joining the prediction markets bandwagon by partnering with Polymarket to provide real-time prediction market data across its digital publications, including The Wall Street Journal, Barron’s, MarketWatch and Investor’s Business Daily.
This is the latest in a string of high-profile deals that have seen Kalshi, for example, partner with CNN and CNBC and Polymarket link-up with Yahoo Finance, Google and X.
Maine’s Casino Punt
Back in June 2025, the Maine House and Senate approved LD 1164, legalising online casino gaming for the state’s four federally-recognised tribes: Houlton Band of Maliseet Indians; Mi’kmaq Nation; Passamaquoddy Tribe and Penobscot Nation.
At the time, Governor Janet Mills (D) stalled by declining to sign the bill and pushing the decision into the new year. With Maine’s legislative session now open, she has two days to sign or kill the bill.
As the deadline looms, the state’s Gaming Control Board has urged a veto, warning the bill would harm the state’s two land-based casinos. Complicating matters further, recent polling suggests that 64 percent of voters in Maine oppose the legislation.
Will Mills sign on the dotted line, making Maine the first state since 2023 to legalise online casinos, or pull the plug last minute? We’ll soon know.
Chicago Goes Rogue
The year has barely begun but it’s already proving a turbulent start for operators in the Windy City. The country’s third-largest municipality has become the first to enact its own sportsbook licensing and tax regime – yes, you read that right.
As of January 1, sportsbooks operating locally must secure a city licence and pay a 10.25 percent tax on revenue. And that’s on top of Illinois’ sliding state tax rate, which climbs from 20 to 40 percent depending on revenue, plus a US$0.50 (£0.37) per-bet levy.
The state’s 15 licensed sportsbooks are taking legal action, calling the rules unconstitutional, while Illinois lawmakers are scrambling to pass legislation to limit the new measures.
Florida Locked And Loaded
Florida’s Attorney General (AG), James Uthmeier (R), has said this week that he plans to ramp up enforcement and rein in Florida’s illicit gambling economy.
Uthmeier, a hard-right conservative, was appointed by Florida Governor Ron DeSantis (R) in February 2025 and is a firm supporter of Trump’s “America First” agenda.
His statement comes just days after his office issued multiple subpoenas to fantasy and sweepstakes platforms. Meetings with company leadership are now planned, giving platforms a narrow and unique window to plead their case.
Beyond subpoenas, Uthmeier is also backing tougher legislation, including HB 189 and HB 591, both of which would significantly increase penalties and overhaul Florida’s gambling enforcement framework.
Currently, the only legal online gambling option in Florida is the Seminole Tribe’s Hard Rock Bet, authorised under the state’s 2021 Gaming Compact, which gives the Seminole Tribe a monopoly on betting and runs until 2051.
Tennessee Draws The Line
And Florida isn’t the only state starting the new year with a round of enforcement action. Tennessee Assistant-Governor Jonathan Skrmetti (R) has also issued cease-and-desist orders to almost 40 online sweepstakes casinos, including High 5 Casino, Chumba and WOW Vegas, in the past week.
Stake, Drake And A Fresh RICO Case
Just before midnight on New Year’s Eve, a RICO (Racketeer Influenced and Corrupt Organisations Act) federal class action suit was filed against crypto gambling platform Stake.us, Canadian rapper Drake, and online streamer Adin Ross in Virginia.
The case alleges Stake.us operates as a real-money casino under the guise of a social casino, using virtual credits and livestreamed promotions to mislead users into gambling with real money.
The plaintiffs seek a jury trial, financial restitution and damages. Should they be successful, Stake.us–currently live in over 30 states–will also be banned from operating in the U.S.
Alright folks that’s a wrap. We’ll be back next week with more juicy headlines from the world’s hottest iGaming market.
