The prediction markets landscape continues to evolve, presenting a series of noteworthy updates. Each Friday, SBC Americas summarizes key developments that may have slipped under your radar in its feature, "Prediction Markets Weekly."
**Oklahoma Tribe Disputes Kalshi Partnership Claims**
Last week, Kalshi announced alleged partnerships with several Indian tribes, including the Alabama-Quassarte Tribal Town of Oklahoma, to introduce prediction market products. However, Oklahoma Indian Gaming Association (OIGA) Chairman Matthew Morgan clarified that while some tribes outside of OIGA have signed contracts, these actions potentially violate the Indian Gaming Regulatory Act (IGRA) and Oklahoma tribal-state compacts.
Adding to the confusion, the Alabama-Quassarte Tribal Town publicly denied any partnership agreement with Kalshi. In a statement shared by Indian Gaming Association (IGA) Conference Chair Victor Rocha, the tribe categorically rejected any claims suggesting they had engaged in a contract with Kalshi. The statement indicated, “Any suggestion or assertion…is false. The Tribal administration…holds a clear position: prediction markets undermine IGRA and Oklahoma/Tribal State compacts.” Morgan subsequently expressed OIGA's support for the tribe's stance against prediction markets.
As of now, Kalshi's website still lists the partnership with the Alabama-Quassarte Tribal Town, despite the ongoing dispute within the tribe’s leadership, as reported by Front Office Sports.
**Polymarket Seeks to Halt New York Case**
In response to a lawsuit filed by New York Attorney General Letitia James—who is seeking a permanent injunction and potentially billions in penalties against Polymarket—the company has moved to protect its interests. On October 12, Polymarket filed for a preliminary injunction at the federal level, asserting that it is enduring “ongoing irreparable harm” due to New York’s legal actions.
Following the lawsuit, Polymarket had already initiated legal proceedings against New York officials. Neal Kumar, the company’s chief legal officer, criticized the attorney general’s approach, calling it a “media hit” and affirming their commitment to user advocacy. “We didn’t run to preemptively sue the state—we chose to engage with them directly,” Kumar stated.
**Google Bans Prediction Market Ads in Litigation States**
Recent changes to Google’s advertising policies now include specific restrictions for prediction markets. The updated rules stipulate that products and advertisements must comply with all local laws and regulations. Notably, companies cannot advertise prediction markets in five states currently embroiled in legal disputes with the industry: Connecticut, Michigan, Nevada, New York, and Ohio.
Google had previously permitted ads for prediction markets registered with the Commodity Futures Trading Commission (CFTC) or the National Futures Association (NFA) since January 2026, yet Nevada was excluded from this policy.
**Nevada Gaming Regulator Critiques Prediction Markets**
Mike Dreitzer, Chair of the Nevada Gaming Control Board, has been vocal in his criticism of prediction markets, labeling them as illegal gambling. At the Global Gaming Expo (G2E) in late September, Dreitzer expressed skepticism about the validity of prediction markets, questioning their supposed innovation. “Crime and deception are not innovation,” Dreitzer stated, asserting that the notion of progress should not be conflated with illegal activities.
In a recent appearance on "The New Normal" webcast, Dreitzer reiterated his concerns, stating that markets competing in jurisdictions where they violate state laws are misleadingly branded as innovative. “I’m looking at two apples, but they are trying to gaslight me to convince me that one of the apples is a banana,” he remarked.
**Kalshi Partners with Signify for Enhanced Integrity Measures**
In an effort to strengthen security and integrity amidst growing scrutiny, Kalshi announced its collaboration with Signify Group. This partnership aims to protect athletes and coaches from online threats and harassment linked to prediction markets. Kalshi has committed to enforcing strict consequences against users exhibiting abusive behavior, including permanent account suspensions.
Robert DeNault, Kalshi's Head of Enforcement, indicated that this partnership equips them with critical tools for identifying and addressing unacceptable conduct. Signify Group CEO Jonathan Hirshler emphasized the importance of safeguarding those involved in sports as prediction markets expand, stating, “Kalshi has rightly chosen to confront that directly.”
