iGaming Weekly Recap (May 26–June 1, 2025): And Then There Were None. Mass Exodus from the CFTC

Montana has become the first U.S. state to ban online sweepstakes casinos. Governor Greg Gianforte signed Senate Bill 555 (SB 555), which outlaws internet sweepstakes casinos, with the law taking effect on October 1, 2025. SB 555 doesn’t explicitly name “sweepstakes casinos” but redefines “internet gambling” to include “online casinos, regardless of name,” that handle bets or payouts in “any form of currency.” The law specifically targets platforms using dual virtual currency systems, where one currency (e.g., “sweepstakes coins”) can be redeemed for cash. Purely social games without cash payouts are exempt from the ban.

Brian Quintenz, President Trump’s nominee for Commodity Futures Trading Commission (CFTC) chairman, pledged to resign from the board of prediction market platform Kalshi if confirmed. Quintenz’s statement comes amid a “mass exodus” at the CFTC, with four commissioners, Kristin Johnson, Summer Mersinger, Christy Goldsmith Romero, and Acting Chair Caroline Pham, set to depart by the end of 2025. Romero and Mersinger left by May’s end, and one seat has been vacant since February. Oversight of prediction markets is increasingly complicated, as Quintenz could soon be the only active commissioner. Amid this chaos, a meeting between tribal representatives and the CFTC saw tribes urge the agency to halt sports event contracts on prediction markets. According to InGame, Acting Chair Pham offered no action, noting that in 50 years, the CFTC has never blocked a contract since Designated Contract Markets self-certify their offerings.

Ohio is moving to legalize online gaming and lotteries through two key bills: Senate Bill 197 (SB 197) and House Bill 298 (HB 298). These aim to introduce mobile casino games and online lottery ticket sales by March 31, 2026, while banning unregulated sweepstakes platforms. Hearings are ongoing; SB 197, sponsored by Senator Nathan Manning, had its third hearing on May 28, 2025, without a vote, and a fourth hearing date is pending. Over 100 Ohio pastors and religious leaders have urged lawmakers to reject the bills, citing harm to families and exploitation of vulnerable groups, particularly low-income individuals and young men, backed by data on addiction risks and social costs like broken marriages, lost homes, and mental health crises.

In Alabama, the Poarch Band of Creek Indians is shifting strategy to push a comprehensive gambling bill. Instead of waiting for the legislative session, the tribe is adopting a year-round approach, educating lawmakers outside the 30-day session. Public opinion polls and focus groups are planned before summer to counter claims of district opposition. Surveys show 90% of Alabamians support a gambling vote, with growing backing for full casinos, though anti-gambling groups’ vocal opposition has often stalled such bills.

In Washington, D.C., Mayor Muriel Bowser proposed legalizing table games like poker and blackjack, plus commercial bingo, to boost city revenue and the local economy amid a projected billion-dollar budget deficit over three years. Licensed venues could offer these games under the Office of Lottery and Gaming’s oversight, with a 25% tax on poker and blackjack gross revenue and 7.5% on commercial bingo sales or fees. The plan needs D.C. Council approval and Congressional review, with commercial bingo potentially starting October 1, 2025, if passed. Currently, commercial operation of these games is prohibited.

Bonus: And There Were None

The tension surrounding the CFTC escalates week by week, somewhat overshadowing other pivotal industry developments. Let’s start with those. Sweepstakes took their first historic blow, and after a string of victories in states like Mississippi, they suffered a defeat in Montana, where a ban on sweepstakes will take effect on October 1. This could be a turning point, as other state legislatures are considering similar bans. We’re talking about potential legal changes in New York, New Jersey, and Nevada. The stakes are high, and the biggest battle for the sweepstakes industry lies ahead.

Worthy of note are the events in Ohio, where enthusiasm for potential iGaming legalization plummeted within a single week. Senate discussions grew heated, revealing the strength of the proposal’s opponents, and the religious community weighed in. Over 100 pastors signed a letter urging lawmakers to reject the bill, highlighting the uphill battle for iGaming advocates.

Kalshi continues to expand its offerings step by step, introducing bets on Week 1 NFL games last week. Meanwhile, Genius Sports called on the CFTC to address prediction markets, but the commission’s capacity is severely limited by the exodus of commissioners. Future CFTC chair Brian Quintenz, responding to concerns, pledged to resign from Kalshi’s board and divest all crypto assets if confirmed. For now, though, it seems Quintenz will walk into an empty room as the sole active commissioner once approved. It’s no surprise, then, that, according to InGame, tribal representatives heard little from Acting Chair Caroline Pham during their meeting. We expected the CFTC wouldn’t aggressively pressure Kalshi, but right now, the commission looks incapable of taking any action.