The Commodity Futures Trading Commission filed an amicus brief supporting Crypto.com in its dispute with the Nevada Gaming Control Board, the source says. Podcast guests said the intervention could affect the boundary between federal oversight of event contracts and state authority over gambling; any court ruling remains pending.
The dispute could shape whether state regulators can apply sports-betting rules to event contracts.
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Nevada’s Gaming Control Board rejected Kevin O’Brien’s appeal over two wagers he said were placed without his input on Caesars Sportsbook, according to the report. The board said disputes must be raised before the game ends; Caesars Digital said it found no account irregularities and had not been told of the issue until the wagers had concluded.
Nevada Gaming Control Board Chairman Mike Dreitzer said on a podcast that prediction market operators such as Kalshi are running illegal sportsbooks, and that Nevada has no fallback plan if the Supreme Court sides with them. He urged tribes and licensees to hold firm, even though several tribes have partnered with Kalshi this month. The comments followed a CFTC interim rule of 9 October excluding casino-style gambling products from the definition of a swap, alongside a proposed rule covering event contracts.
The Ninth Circuit Court of Appeals ruled in Nevada’s dispute with Kalshi that the Commodity Exchange Act does not prevent states from regulating sports contracts. The ruling could lead to a Supreme Court case, according to the report.
Kalshi ranked fourth among US sportsbooks by adjusted handle per adult in March, according to estimates from Eilers & Krejcik Gaming (EKG). EKG’s model differs from conventional sportsbook handle measures and includes volume through partners such as Robinhood Markets and Coinbase Global. The firm estimated prediction markets generated about $2bn in US monthly handle in March 2026.
Flutter Entertainment chief executive Dan Taylor said on its 4 November earnings call that the company expects more clarity in the coming months on the economics of FanDuel Predicts. FanDuel recorded $119 million in trading volume in the third quarter; Flutter expects its market-making operation to generate $50 million in revenue and $40 million in adjusted EBITDA during 2026.