iGaming Weekly Recap (March 31 – April 6, 2025): Breaking Down the Madness
The 2025 Indian Gaming Association (IGA) Convention in San Diego marked a turning point in California’s sports betting talks. DraftKings and FanDuel admitted their 2022 proposal flopped and signaled readiness to work with tribes. The tribes, wielding major influence in gaming, stressed their sovereignty, while operators voiced a shift from competition to partnership.
Discussions seemed to be underway about cooperative models, drawing from other states, focusing on tribal control paired with operators’ tech support. The ultimate goal is a tribal-led sports betting system, possibly by 2028, but recent developments have cast doubt on this timeline. Missteps, including a breach of trust at a private tribal roundtable, leaked to the press, have deepened skepticism among tribes.
Far from reaching a deal, tribal leaders have rejected claims of an agreement with operators, stressing that any resolution must navigate the Indian Gaming Regulatory Act and unify diverse tribal perspectives. Operators, eager to mend past errors and forge alliances, face an uphill battle as tribes maintain a cautious, resolute stance, leaving the prospect of meaningful collaboration uncertain.
The city of Baltimore has sued DraftKings and FanDuel, accusing them of predatory marketing tactics that violate local consumer protection laws. The allegations point to deceptive promotions, targeting vulnerable users with data exploitation, and weak responsible gaming measures. Baltimore seeks damages, maximum fines, and platform changes to stop further player exploitation.
Light & Wonder pulled its slot game “Jewel of the Dragon” after Aristocrat Technologies Inc. filed a trade secrets theft lawsuit. Aristocrat claims the game infringes on their “Autumn Moon” title, alleging Light & Wonder developers accessed confidential documents beforehand. The company not only withdrew the disputed game but also paused sales of other titles and launched internal reviews to dodge more legal trouble.
Hopes for legalizing online sports betting in Mississippi in 2025 crumbled as the Senate rejected a House amendment to a bill originally aimed at banning promotional lotteries. The Senate’s main concern was the potential hit to brick-and-mortar casino revenue from online betting. Failed committee talks tanked the entire bill, leaving online sports betting illegal and the planned lottery ban sidelined due to this legislative tangle.
Bonus: Okay, What’s Actually Happening Here?
We’ve got a hunch that our “action-packed week” phrasing in the Weekly Recap is wearing thin. On a 1-10 scale, We’d give the past week a solid eight, leaving a couple points of wiggle room for future chaos.
Prediction markets stole the show again, as they have all year. After Kalshi got hit with C&D letters from Nevada and New Jersey, other states jumped in fast. Ohio and Illinois are already on it, demanding Kalshi, Robinhood, and Crypto.com stop violations. Will Kalshi keep suing regulators in every state like they did before? That’s still up in the air.
More states could pile on at an alarming rate. Connecticut, Kansas, and Arizona have their eyes on prediction markets, per EGR North America, while Dustin Gouker reports heightened activity in Louisiana, Washington, and Michigan. Meanwhile, the CFTC’s acting like the wallflower at a loud party, watching, waiting, trying to time its move. Trouble is, this party’s its own birthday bash.
The big player in this prediction market mess, Kalshi, is in flux and hasn’t spoken up. Gouker says the much-anticipated roundtable on prediction platforms is set for late April, but the CFTC’s still mum. It’ll be fascinating to see where this commission, seemingly soft on commodities trading, lands amid a nationwide crackdown. Honestly, We’d love to see a market on “Kalshi gets over 12 C&D orders before the CFTC roundtable.”
The prediction market drama alone was a wild ride. Stocks of U.S.-listed gambling firms, though, took a steep dive. Macroeconomic vibes are grim, and market uncertainty is through the roof. In one month, Flutter Entertainment, once nearing a $50B market cap, dropped 24%, DraftKings -27%, Caesars -24%, and Penn Entertainment -29%. You could list every iGaming stock here. Unfavorable sports outcomes and Trump-era tariffs aren’t helping the biz climate.
The IGA Convention we mentioned sparked hope for quicker progress on California sports betting, but the operators’ mea culpa vibe faded fast after tribal pushback. Agreement’s still miles off. Prediction markets crept in here too, tribes aren’t thrilled. To calm things, DraftKings COO Jeremy Elbaum, with the firm eyeing a prediction play, swore they’d steer clear of California.
What else? Sweepstakes casinos keep popping up: Illinois is gunning for a ban, while Mississippi’s effort sank after tying it to sports betting. Michigan’s sending more C&D orders to illegal operators, and Kalshi’s likely next. On the online casino front, Light & Wonder yanked “Jewel of the Dragon” over trade secret claims.
A bright spot: Hawaii’s sports betting bill is quietly gaining traction. Everyone wrote it off, but it’s now a top contender for legalization this session.
Here’s a prediction market for next week:
- Kalshi, Robinhood, and Crypto.com snag at least 3 C&D letters from state regulators.
- Flutter Entertainment stock dips 5% or more.
- Kalshi sues two more regulators (can’t wait to see).
- Sports betting bills flop in at least 2 states (still rooting for Hawaii).
- CFTC sets a roundtable date (fingers crossed).
- LinkedIn sees 10+ posts doubting a quick California operator-tribe deal.
That wraps this Weekly Recap – endless topics, limited space. Catch next week’s U.S. gambling updates, same time, same place.
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