Kalshi has preemptively sued Louisiana over threatened enforcement, while Alberta’s newly regulated iGaming market has reported almost 390,000 player accounts.
Kalshi’s legal fight with state officials has expanded to Louisiana, where it filed a preemptive lawsuit claiming it faces an imminent enforcement action. Meanwhile, Alberta released its first iGaming figures, reporting CA$122 million in revenue since its July launch.
Elsewhere, President Lula’s reelection cast further doubt on Brazil’s gambling industry, DraftKings and FanDuel face a proposed class action over AI and VIP practices, and Wisconsin tribes are seeking to dismiss a lawsuit challenging online sports betting.
The Big Story: Kalshi Sues Louisiana to Prevent Gambling Enforcement
Unlike some of Kalshi’s previous lawsuits, Louisiana has not pursued formal enforcement actions against Kalshi, such as a cease-and-desist order. However, this isn’t the first time the operator has preemptively sued a state; it previously did so against Utah and Iowa.
In the Louisiana filing, Kalshi argues that officials “have repeatedly made clear that they believe event contracts like Kalshi’s are illegal under Louisiana’s gambling laws.”
That includes statements from the Louisiana Gaming Control Board saying that certain event contracts are illegal even if listed on a CFTC-regulated exchange and that it “sees no defense to offering such activity pursuant to a CFTC license.”
Meanwhile, according to Kalshi, Attorney General Liz Murrill has called prediction markets “gambling” and vowed to “make sure that our laws are respected and enforced.”
Beyond the usual federal preemption arguments, Kalshi also cites the CFTC’s recent rulemaking, including a proposal to expressly classify sports-event contracts as swaps.
Another central argument is Louisiana’s expanded gambling enforcement authority, which took effect Aug. 1. The new provisions allow the attorney general to seek injunctions against alleged illegal gambling operations, including orders to remove websites and freeze associated bank and credit accounts.
Kalshi points to potential criminal penalties under Louisiana law, including fines of up to $100,000 and imprisonment of up to five years for certain violations. The company is seeking declaratory and injunctive relief to prevent Louisiana from applying its gambling laws to the company’s federally regulated exchange.
The Daily Wire
Alberta Reports CA$122 Million in Gaming Revenue Since July Launch
Alberta’s newly regulated iGaming market generated approximately CA$122.1 million ($87.1 million) in non-adjusted gross gaming revenue between its July 13 launch and Sept. 30.
According to the Alberta iGaming Corporation’s first market report, monthly revenue rose from CA$22.2 million in July to CA$43.3 million in August, then to CA$56.6 million in September. Casino games accounted for 75.6% of the September revenue. Sports betting accounted for 19.5%, and live casino for 4.9%.
There were 388,585 active player accounts (not unique users) in September. The average revenue per active account was CA$146. The number of licensed operators rose from 15 at launch to 24 by the end of September, with more expected before year-end.
Lula Wins Reelection in Brazil, Casting Doubt on Betting Industry’s Future
Brazilian President Luiz Inácio Lula da Silva has won a fourth term after defeating Flávio Bolsonaro in Sunday’s runoff election. The results could significantly affect the country’s recently shuttered online gambling industry.
On Sept. 25, Lula signed a provisional measure banning online gambling, including sports betting and iGaming. Operators shut down on Oct. 6.
His reelection makes an executive reversal of the ban unlikely. However, the future remains uncertain. Congress must approve the measure within 120 days for it to remain in force. Lawmakers have proposed more than 90 amendments, including proposals to restore sports betting. The ban also faces challenges in the Supreme Court.
DraftKings and FanDuel Face Louisiana Class-Action Lawsuit Over AI and VIP Practices
DraftKings and FanDuel are facing a proposed class-action lawsuit in Louisiana alleging that their sports betting apps use AI, behavioral tracking and VIP programs to encourage addictive gambling behavior.
The lawsuit, filed Oct. 22 in Orleans Parish Civil District Court, names three New Orleans residents who allege that the operators intentionally designed their platforms to keep customers gambling, even after substantial losses.
The complaint alleges that both companies use customer data and AI to identify vulnerable gamblers and target them with personalized promotions, push notifications and rewards.
It also highlights VIP programs offering personalized hosts, sporting event tickets and betting bonuses to high-wagering customers.
The plaintiffs allege wagering amounts ranging from more than $23,500 to approximately $88,700 and seek refunds of net deposits and compensation for alleged damages.
The proposed class action arrives amid growing scrutiny of DraftKings and FanDuel’s marketing practices. Multiple gambling regulators, including Louisiana’s, are investigating DraftKings for alleged AI use, while federal lawmakers have launched an investigation into FanDuel’s VIP practices.
Wisconsin Tribes Seek Dismissal of Online Sports Betting Lawsuit
Eight Wisconsin tribal nations have asked a Waukesha County judge to dismiss a lawsuit challenging the state’s new tribal-controlled online sports betting framework. The Wisconsin Institute for Law & Liberty filed the lawsuit in August on behalf of two conservative groups, arguing that Act 247 violates the state constitution.
The lawsuit argues that the law violates the constitution by granting special privileges “based upon race”. In their motion to dismiss, the tribes cite sovereign immunity and dispute the plaintiffs’ legal standing. The Wisconsin Attorney General’s Office has also defended the legislation.
A court scheduling conference is set for Nov. 9.
Gemini to Stop Offering Sports Prediction Markets in Ohio
Ohio customers of Gemini Titan will lose access to its sports-event contracts on Nov. 6, according to a customer email seen by NEXTPredict.
After the deadline, customers will no longer be able to buy new orders or sell existing sports contract positions. Remaining open positions will be held until the events are resolved. While sports event contracts will no longer be offered, Ohio customers will still have access to non-sports events and other Gemini products.
The decision follows cease-and-desist orders the Ohio Casino Control Commission (OCCC) issued earlier this month to 10 prediction market operators. Gemini becomes the second operator to comply after Plus500US.
Gemini previously also withdrew sports event contracts from Connecticut following similar regulatory pressure.
Evoke Revenue Falls 7% as Bally’s Intralot Acquisition Nears Completion
Evoke reported third-quarter revenue of £406 million ($542.4 million), down 7% year over year. Revenue fell 2% on a like-for-like, constant-currency basis after closing about 270 retail shops. The company said “particularly customer-friendly” results at the beginning of the football season reduced revenue growth by approximately 1 to 2 percentage points.
CEO Per Widerström said the company “continues to show resilience” and reflects “continued emphasis on profitability and cash.” He pointed to the closure of 270 retail shops and urged the U.K. government to reconsider further tax increases.
The company also noted that its proposed acquisition by Bally’s Intralot remains on track. The deal is expected to close in late Q4 2026 or early Q1 2027.
Industry Developments to Watch This Week
This week features a busy earnings calendar, with Caesars Entertainment and Robinhood reporting Tuesday. MGM Resorts, Rush Street Interactive, Churchill Downs and VICI Properties follow Wednesday, while Coinbase and Gaming and Leisure Properties report Thursday. Robinhood and Coinbase’s updates could provide fresh insights into the prediction market sector.
The sector will also likely see additional litigation updates, such as new filings or possibly rulings. Prediction market trading volumes will also be in focus as another NFL weekend approaches and the midterm elections get closer. For election contracts, it would be interesting to observe any discrepancies between polls and trading activity.
In Ohio, gambling licensees have until Friday to confirm compliance with OCCC’s warning that involvement with prediction markets could jeopardize their licenses. Meanwhile, objections to a Kentucky magistrate judge’s recommendation to return enforcement lawsuits against Kalshi and Polymarket to state court could arrive this week.
The Missouri Gaming Commission also meets Wednesday, with sports betting licensing decisions involving BetMGM, Fanatics and Penn Sports Interactive, along with several settlement agreements, on its agenda.
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