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Paul Tonko proposes federal sports betting limits on AI promotions

Regulation

US Congressman Paul Tonko outlined a proposed federal sports betting bill that would prohibit AI use for individualised customer promotions, according to reports published on 2 April 2024. The legislation has not been filed and remains under development; a spokesperson for Tonko said the framework would not restrict tools used to identify risky behaviour.

Operators and integrity monitors may be affected by how the proposed bill distinguishes promotional profiling from player-protection tools.

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Illinois federal judge limits state gambling enforcement against Kalshi

A federal judge in Illinois partially maintained preliminary injunctions protecting Kalshi from state gambling enforcement on 2 October. The court found that federal law likely preempts state licensing requirements because Kalshi’s contracts likely qualify as swaps. The ruling remains preliminary, and the judge allowed further briefing on wager-related fees.

A federal judge in Illinois ruled on 2 October that the state likely cannot enforce several of its gambling laws against Kalshi while a case on prediction markets continues, keeping preliminary injunctions in place in part. US District Judge Martha M. Pacold found that Kalshi's event contracts are likely swaps under the Commodity Exchange Act, according to the opinion. The decision is not final.

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