RSI CEO Richard Schwartz said states could legalise online casino gambling at an accelerated rate. He linked the possibility to states seeking ways to replace sports-betting tax revenue that prediction markets might displace.
Potential state legalisation could create new online casino markets for operators and suppliers.
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Kalshi chief executive Tarek Mansour expects rules clarifying sports prediction markets' legal status within weeks. He also said Kalshi expects to announce agreements with one or two major leagues soon, which he believes could help the company navigate legal uncertainty.
Flutter Entertainment chief executive Peter Jackson said regulated online sports betting offers a better product than prediction markets. He said prediction markets grow where no licensed betting offer exists, leaving illegal bookmakers as their only competitor.
Kalshi Chief Executive and co-founder Tarek Mansour said the company's legal challenges reflect resistance from established gambling businesses as prediction markets grow. New York has sued Kalshi, alleging its event contracts breach state gambling law; Kalshi maintains that the CFTC, rather than state regulators, oversees its markets.
CME Group chief executive Terry Duffy said many products tied to sporting outcomes are closer to betting than genuine financial products, particularly those based on complex combinations or short-term bets. Duffy said the question of how to categorise sports prediction markets will likely reach the US Supreme Court. CME reported quarterly revenue exceeding $1.7bn.
Kalshi co-founder and chief executive Tarek Mansour argued at a Washington event that prediction markets depend on skill rather than traditional betting. He said 25% to 33% of users finish a year in profit, while US public-health experts and gambling businesses dispute the model’s character and regulatory treatment.