It’s not Letter From America’s role to write obituaries, but 2026–spurred by the inexorable rise of prediction markets–is already shaping up to being both the death and rebirth of U.S. iGaming.
With both FanDuel and DraftKings having ditched their membership of the AGA at the end of last year, it seems the American Gaming Association is a goner. Big hitters Sportradar and OpenBet have now also exited the organisation, report reliable sources.
OpenBet is a partner of Flutter and its off-shoot FanDuel, and Sportradar is a data provider to both FanDuel and DraftKings.
Zelig/Selig
Meantime, Michael Selig, the newly-appointed Chair of the Futures Commodities Trading Commission (CFTC), which nominally regulates prediction markets, in their definition as Futures–and not betting–sites, has asked his team to draw-up new legislation to regulate the coming, testosterone-fuelled verticals, who are currently driving the proverbial bulldozer through iGaming.
We watch with fascination – and a modicum of alarm, as the CFCT mutates to become the moderator of 21st Century gambling.
Virginia Goes For iGaming
Meantime, in Virginia, lawmakers have breathed fresh life into SB 118, which aims to legalise online casinos with a tax rate of 15 percent, by firming up statutory problem gambling controls.
Last week, the gaming subcommittee voted against SB 118, with lawmakers citing concerns over player protections.
These issues have now been rectified and the bill has narrowly passed its first committee vote (9-6), moving to the Senate Finance and Appropriations Committee.
If it passes, it will go to the state senate floor.
Super Bowl LX Betting Boost
New analysis released by Legal Sports Report and the Sports Betting Alliance (SBA) has forecast that Super Bowl 60 is set to be the biggest yet, driving US$1.71 billion (£1.26bn) in bets across regulated bookmakers.
Never one to miss a chance to promote expansion, Joe Maloney, President of the SBA, said: “This forecast underscores why legal markets matter: When bettors have access to regulated sportsbooks, they choose platforms that protect their data and provide consumer safeguards.
“Expanding and modernising legal sports betting is not just smart policy, it is essential to protecting consumers.”
Reset
Just in time to catch that Super Bowl betting boom, the National Council on Problem Gambling (NCPG) has re-launched its helpline. Designed to be easily memorable and non-stigmatising, the new number 1-800-MY-RESET is available 24/7 and provides free support and referrals.
The relaunch–due to a lease dispute over the old number–is a crucial step in assisting the “20 million U.S. adults who reported experiencing at least one indicator of gambling-related harm in the past year”, according to NCPG research.
Maine Dispute
It’s been barely three weeks since Maine made history, becoming the eighth state to legalise iGaming.
But the honeymoon period is well and truly over.
On January 23, Churchill Downs-owned Oxford Casino–one of only two casinos in Maine–filed a lawsuit against LD 1164, which it dismissively calls “The Monopoly Law” because it is subject to the state’s Tribal Gaming Compact.
LD 1164 only legalised online casinos for the state’s four Tribes, a move Churchill Downs claims violates federal and state equal protection laws and which they claim could cost the land-based industry some 378 jobs, US$22 million (£16.1m) in labour income and US$60 million (£44.4m) in total economic value.
This one’s going to run and run.
Geo-Fencing
To draw a 19th Century analogy it’s reminiscent of those Open Range wars of the Old West, since the Massachusetts Superior Court moved to grant a preliminary injunction in Massachusetts v. Kalshi (rejecting Kalshi’s federal preemption argument and requiring the predictions platform to geo-fence its sports betting products), the number of states leveraging this decision has exploded.
Ohio, New York, Tennessee, Nevada and New Jersey have since included the case as “supplemental authority” in their filings – intensifying the legal fight over states’ rights versus federal certification of sports betting.
Allwyn Grabs A Prize Pick
UK National Lottery operator Allwyn has completed its acquisition of a 62.3 percent majority stake in PrizePicks, North America’s largest daily fantasy sports (DFS) operator and recent prediction markets entrant, after striking a multi-year deal with Kalshi.
The acquisition–valuing PrizePicks at US$1.53 billion (£1.13bn)–puts Allwyn right where it wants to be, in the heart of the U.S. market, undoubtedly a prize pick.
Snoop Dog Joins The Pack
As the anti-sweepstakes legislative momentum builds, many are calling time on dual-currency quasi-gambling sites. But not rapper turned national treasure Snoop Dogg. He’s doubling down with the launch of his own sweepstakes site, Dogg House Casino, in partnership with Trivelta.
Offering Snoop-themed slots, exclusive music and even Snoop Cash and Coins, Dogg House leans heavily into its branding but enters the market at a difficult time.
Last year, Montana, Connecticut, New York, New Jersey, Nevada and California banned sweepstakes, with Maryland, Maine, Indiana and Virginia all considering ban bills this session.
As always, Watch This Space!
