iGaming Weekly Recap (April 28–May 4, 2025): Bet365 for Sale?
Kalshi is celebrating another court victory, this time in New Jersey, while Montana is one step away from becoming the first state to ban sweepstakes casinos. On top of that, the industry was abuzz with rumors of a potential bet365 sale, which, despite stiff competition, would be one of the biggest stories in years. What else went down in the industry last week? Check out our Weekly Recap!
Reports from The Guardian suggest that the Coates family, owners of bet365, is considering selling the company for $12 billion or pursuing a U.S. IPO. Reasons cited include the booming U.S. betting market, the need for capital to fuel aggressive expansion, and a desire to maximize value amid rising competition and maturing markets. It appears bet365 may have already taken initial steps toward a potential deal, exiting the Chinese market and altering the ownership status of Stoke City FC. This could be one of the most significant transactions in industry history and definitely another compelling story to watch this year.
Kalshi scored another court victory, bringing its combined record against states to 2-0. This time, the win came in New Jersey, where a federal court issued a preliminary injunction against the state. The court ruled that Kalshi’s sports event contracts fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC), not state gambling laws. The decision blocks a cease-and-desist order from the New Jersey Division of Gaming Enforcement (NJDGE), which deemed Kalshi’s operations illegal sports betting. This marks Kalshi’s second federal triumph, following a similar ruling in Nevada, and is surely another strong card to play in its upcoming clash with Maryland.
Senate Bill 555, aimed at banning sweepstakes casinos in Montana, has passed both the Senate and House of Representatives and awaits the governor’s signature. If signed, Montana will become the first state to explicitly prohibit these online gambling platforms, targeting dual-currency systems often used to skirt traditional gambling laws. The bill seeks to tighten control over online gambling in a state that currently allows sports betting, tribal casinos, gaming machines, and a state lottery. Legal experts believe the bill’s broad language, particularly the phrase “any form of currency,” is expansive enough to cover lottery casino games.
The Illinois Gaming Board (IGB) unanimously approved a ban on using credit cards to fund sports betting, aiming to promote responsible gambling, following similar rules in other states. IGB Administrator Marcus D. Fruchter cited research showing that credit card restrictions reduce compulsive gambling. While the IGB also greenlit cashless wagering in Illinois casinos, allowing digital wallets, these systems exclude credit cards and must comply with existing safeguards. A third rule mandates record-keeping by agents and brokers of video gaming sales to boost transparency in this high-revenue sector.
Caesars Entertainment’s WSOP Online poker platform launched in Pennsylvania, creating the first U.S. network with a shared player pool across four states: Pennsylvania, Nevada, New Jersey, and Michigan. This integration followed Michigan’s inclusion in May 2024, bolstering WSOP Online’s position. The 2025 WSOP Online bracelet event schedule is packed, running from May 31 to July 15, featuring 30 tournaments, including 10 live final tables and a new online leaderboard with a $30,000 prize pool.
Bonus: Brace Yourself. The Market’s New Rules
The industry stands on the brink of its biggest transformation since Murphy v. NCAA. Prediction markets are carving a path to reshape the sports betting landscape on their own terms. Kalshi has secured early courtroom wins in Nevada and New Jersey, but nothing’s set in stone, and legal experts caution that the issue isn’t as clear-cut as it seems.
“I have serious doubts about Kalshi’s legal arguments, though they may well prevail in the end. I just wouldn’t put too much stock in decisions that sidestep the big question: where do we draw the line, if there’s a line at all? The sooner we get judicial rulings tackling the tough questions Kalshi’s cases raise, the better—for everyone, including Kalshi,” wrote legal expert Andrew Kim in Event Horizon.
While Kalshi’s initial successes are undeniable, caution is warranted. Many unknowns linger, questions abound, and Judges Gordon and Kiel have been notably reserved in their rulings.
Let’s recap where things stand. Kalshi’s early claim that it doesn’t offer sports betting is blurring as its marketing boldly touts betting in all 50 states. As a supposedly CFTC-regulated entity, Kalshi has become the face of the industry. It’s the one racking up lawsuits and collecting cease-and-desist letters, six so far. The fate of Crypto.com and Robinhood hinges on Kalshi’s wins.
The CFTC’s prediction markets roundtable was canceled without explanation or a rescheduled date. Some argue the CFTC isn’t the right regulator for Kalshi, merely a hollow excuse lacking substance due to its silence. Kalshi’s strongest card heading into the Maryland case seems to be the prior rulings from Judges Gordon and Kiel.
A Murky Legal Line
Based purely on events, Kalshi and other prediction platforms appear poised to keep operating nationwide. Dig deeper, though, and Kalshi’s arguments aren’t ironclad. Further complications arise in defining the line between event contracts and sports betting. The economic impact argument is slippery and open to interpretation. Does handing event contracts to the CFTC edge us toward federal sports betting oversight? Can states effectively manage this?
DraftKings seemed ready to jump into prediction markets but recently backed off. FanDuel, however, made a curious move, launching a peer-to-peer daily fantasy sports pick’em game in Alabama, Arkansas, Minnesota, Oregon, and Wisconsin. States where the betting giant hadn’t operated. This feels like a setup for broader activity, sidestepping state rules. After all, why do FanDuel and DraftKings dominate today? They built brand awareness pre-PASPA through DFS. FanDuel’s pick’em game in five new states seems like a similar play to lay the groundwork for bigger moves.
The prediction markets saga could unfold in countless ways with far-reaching impacts. Preparing for a total business landscape overhaul looks like a smart bet.
Recommended