iGaming Weekly Recap (September 29–October 5, 2025): Kalshi Launches Same-Game Parlays

Three divisions of the Commodity Futures Trading Commission (CFTC) issued a formal advisory, urging market participants to view the listing, trading, and settlement of sports-related event contracts as a legal risk, not a settled matter. The agency warned that these contracts are caught in a “legal crossfire,” facing mounting state pressure, evidenced by cease-and-desist orders in Illinois and warnings in Ohio.

This stance stems from a federal court ruling in KalshiEX LLC v. Martin, which clarified that the Commodity Exchange Act does not override state gambling and betting laws for these contracts, giving states room to act. As a result, firms, including futures commission merchants (FCMs) and designated contract markets (DCMs), must immediately develop contingency plans, update risk disclosures in plain language, and establish position liquidation procedures to prepare for state actions, lawsuits, or forced position cuts.

In California, amid ongoing debates over legalizing online sports betting, a new document titled YES Pledge: Support for Online Sports Betting in California emerged, aiming to rally tribes for tribally managed legal frameworks. Crafted by the Tribal Sports Betting Alliance Advisory Council (SBA), tied to major operators like DraftKings and FanDuel, the pledge sparked swift backlash.

The California Nations Indian Gaming Association (CNIGA), the state’s largest tribal group, rejected it as a “corporate-driven maneuver,” stressing that tribal sovereignty must lead, and legal frameworks should be shaped by tribes, not external corporate interests. This reignites 2022 tensions, with control over the market, and whether commercial sportsbook brands operate upfront or as backend service providers, at stake.

DraftKings announced a sweeping, multi-year advertising and integration deal with NBCUniversal, marking its largest broadcast partnership to date. This agreement secures DraftKings a high-profile presence, with exclusive digital integrations and sponsorships across NBCUniversal’s top-tier sports broadcasts, including NFL, NBA, PGA TOUR, Premier League, NCAA football and basketball, Super Bowl LX, NBA All-Star Weekend, and the 2026 FIFA Men’s World Cup (on Telemundo).

Beyond traditional sports betting, the deal grants exclusive digital sponsorship for iGaming, daily fantasy, online lotteries, and horse race betting. The goal: reshape the viewer experience and leverage NBCUniversal’s vast reach across linear TV, streaming, and digital platforms, cementing DraftKings as a one-stop hub for regulated real-money gaming.

FanDuel struck a deal with Amazon, becoming the official odds provider and broadcast partner for NBA and WNBA games on Prime Video, introducing a fresh way to deliver live betting data to basketball fans. Starting this NBA season, Prime Video viewers opting into features like “Bet Tracking and Odds View” will see personalized, real-time betting updates on-screen. Active FanDuel bets linked to a Prime Video profile will display real-time progress and win/loss status, while the Odds View overlay cycles through popular markets (e.g., moneyline, spreads, totals, player props, and parlays).

Though direct betting isn’t available on Prime Video, this integration blends live action with active bets in a groundbreaking way for major sports broadcasts. Mike Raffensperger, FanDuel’s President of Sports, called it a “significant milestone” in connecting with basketball fans, with former NBA star Blake Griffin serving as the ambassador for FanDuel’s Prime Video offerings.

Federal Judge Edward Davila in San Jose, California, denied motions by Meta Platforms (Facebook), Google (Alphabet), and Apple to dismiss a class-action racketeering lawsuit filed in 2021. The suit, brought by dozens of plaintiffs, accuses tech giants of promoting illegal gambling through social casino apps on the App Store, Play Store, and Facebook, which offered an “authentic Vegas-style experience” and allegedly exploited users.

A key part of the ruling rejected the companies’ reliance on Section 230 of the Communications Decency Act, which grants immunity for third-party content. Judge Davila ruled that the firms weren’t acting as “publishers” when processing payments, and the core allegations focus on improper payment processing for social casino apps, nullifying their immunity claims. Having earned over $2 billion in 30% commissions on these transactions, the defendants can now appeal to the 9th U.S. Circuit Court of Appeals.

Prediction market platform Kalshi quietly rolled out customizable same-game parlays for NFL Monday Night Football, a U.S. first for the exchange and a bold shift from its standard event contract model. Launched without fanfare, the feature lets users bundle multiple pre-game bets from the same match, spreads, moneyline, over/under, and anytime touchdown scorer props, into a single long-odds wager.

This move edges Kalshi closer to traditional sportsbook experiences, but transparency concerns arose, as the parlays operate outside the standard order book, lacking limit orders and using “take it or leave it” pricing with unclear odds mechanisms. The “stealth-style” launch coincided with Kalshi CEO Tarek Mansour’s SEC-CFTC joint meeting remarks advocating for financial innovation freedom, underscoring the firm’s real-time push against regulatory boundaries.

New Jersey’s Supreme Court rejected an emergency appeal by the National Council on Problem Gambling (NCPG), ending a months-long legal battle over the 1-800-GAMBLER problem gambling hotline. The court found NCPG showed “no entitlement to emergent relief or irreparable harm,” allowing the Council on Compulsive Gambling of New Jersey (CCGNJ), the hotline’s original operator and a national symbol of support, to assume full control after NCPG’s licensing agreement expired and a lower court ordered the transfer. This decision finalizes the dispute, despite NCPG’s warnings that losing access “will fundamentally impair nationwide access to timely, confidential, and high-quality care.”

The White House formally withdrew Brian Quintenz’s nomination as CFTC Chairman, halting his expected confirmation. The decision followed weeks of growing opposition, driven by two factors: influential crypto investors, including Tyler and Cameron Winklevoss, privately urged President Trump to reconsider, arguing Quintenz didn’t align with the administration’s agenda; and traditional gaming stakeholders criticized his ties to Kalshi, whose sports event contracts frustrated casino operators. A White House official noted Quintenz remains a “trusted ally” in the broader crypto agenda, with a new nominee to be announced “in the near future.”

Prediction market platform Polymarket is gearing up for a U.S. return after nearly three years, planning to offer contracts heavily focused on sports betting (e.g., game winners, point spreads, totals) and election outcomes. This follows a 2022 CFTC settlement and a strategic $112 million acquisition of licensed derivatives exchange QCEX.

Acting CFTC Chair Caroline Pham called prediction markets an “important new frontier,” and Polymarket secured a “no-action” letter authorizing its relaunch. Backed by a recent investment from 1789 Capital (with Donald Trump Jr. as a strategic advisor), the firm has submitted self-certifications for new contracts. Yet, its return pits it against rivals like Kalshi, with legal controversies lingering as state gaming regulators argue these contracts are simply illegal sports bets.

A bipartisan group of U.S. Senators, including John Curtis (R-UT) and Catherine Cortez Masto (D-NV), formally challenged the CFTC in a September 30 letter to Acting Chair Caroline Pham, accusing the agency of sidestepping its federal mandate by implicitly allowing nationwide sports betting activity. The senators argue that the CFTC permits certain firms to classify sports betting products as “event contracts,” violating state and tribal gaming laws and enabling operations on a national scale under the guise of federal regulation.

They claim federal law explicitly bars the CFTC from approving event contracts involving gaming, illegal under federal or state law, or against the public interest, asserting that current CFTC policy undermines state and tribal sovereignty by bypassing licensing, age verification, AML rules, and consumer protections. The senators demanded immediate enforcement of Regulation 40.11 to block illegal sports gaming event contracts and posed 11 detailed questions on legal interpretation and enforcement lapses, expecting CFTC responses by October 30, 2025.