Derek Stevens, the owner of Circa Sports, has voiced strong criticism of prediction markets, labeling them as dishonest players in the evolving landscape of sports betting. In a report released Tuesday, he expressed his disdain for platforms like Kalshi and Polymarket, particularly highlighting the ongoing legal disputes between these markets and various states.
"They’re pirates. They’re thieves," Stevens declared. He argued that if Circa didn’t have to pay federal sports-betting excise taxes, state gaming taxes, and fees for league data and problem gambling programs, it could offer better betting splits. "I tend to believe that more balanced heads are going to prevail," he added.
Critically, Stevens pointed out that while his company pays these mandatory fees, prediction markets avoid them. "We’re paying all those fees; they don’t. Effectively, they’re thieves," he reiterated.
Most experts anticipate that the United States Supreme Court will weigh in on the future of prediction markets, but Stevens remains skeptical, particularly in light of New York’s recent $36 billion lawsuit against Kalshi. "I don’t see the state of New York backing down and saying, ‘Oh, just because you guys are shrewd, we’re going to take a billion-dollar hit on our state revenue,'" he noted, underscoring his concerns.
He cited Illinois as another example of strict taxation on sports betting, emphasizing that their charges, including a 25-cent fee on each wager, should not be sidestepped by companies like Kalshi and Polymarket. Stevens called this avoidance "preposterous."
His arguments are consistent with sentiments he expressed earlier this year on a Bloomberg podcast, where he referred to prediction markets as "marauders" and likened them to selling stolen big-screen TVs at half price. Although Stevens acknowledged that Circa competes reasonably well with these platforms, he admitted they negatively impact his business. "With us running a low-hold model, we felt prediction markets took a decent amount of handle away from us," he explained.
In other developments, Circa has been granted a license to operate in Arizona, with plans to launch in January 2027, though Stevens noted this timeline could change. Circa currently operates in Nevada, Colorado, Kentucky, Iowa, and Illinois, offering both retail and online betting, but Arizona's rollout will be online only for now. However, Stevens hinted at a possible retail venture in the future, stating, "I have a unique interest in developing a retail presence as well, which could be with another operator. But I can’t talk about it."
