iGaming Weekly Recap (November 17-23, 2025): FanDuel and DraftKings Depart the AGA, Signaling a Rift in Sports Betting

📈 Week in Prediction Markets

Cboe Global Markets, a leading exchange operator known for derivatives trading, announced plans to launch its own platform in the coming months. The platform will focus exclusively on financial and economic outcomes, such as index movements and market volatility, deliberately steering clear of the sports betting segment to avoid regulatory risk.

Simultaneously, sports retail and collectibles giant Fanatics is exploring a partnership with Crypto.com to enter the prediction markets space. This move aims to give Fanatics exposure to wagering on sports, politics, and pop culture.

Kalshi has solidified its position through key alliances, including a multi-year partnership with PrizePicks. This deal allows the operator to immediately launch prediction markets (covering both sports and cultural events) in 38 states and the District of Columbia, leveraging Kalshi’s federally regulated infrastructure. Furthermore, Kalshi partnered with Coinbase Custody to provide institutional-grade security for client funds (USDC), aiming to bring event contracts into the financial mainstream.

The week also brought product expansion and heightened regulatory tension. Kalshi expanded its sports offering by introducing new “player prop bets” for the NBA (covering points, rebounds, and assists). To manage manipulation risks, they implemented strict safeguards, including $10,000 transaction limits and a trading ban for NBA personnel.

These new markets emerged just as the NBA launched a compliance review of Minnesota Timberwolves owners Marc Lore and Alex Rodriguez. The inquiry focuses on their ties to Mojo Interactive Inc., a startup trading sports contracts on the Kalshi exchange, highlighting emerging challenges regarding conflicts of interest and federal oversight (CFTC) of these financial instruments.

Looking toward the industry’s future, Kalshi CEO Tarek Mansour boldly predicted that prediction markets would match traditional stock exchanges in trading volume within just a few years. Conversely, Polymarket CEO Shayne Coplan sharply criticized the traditional sportsbook model as a “scam” that employs predatory practices, such as limiting winning players, while predicting that the jurisdictional dispute over federal regulation of these markets will ultimately be settled by the Supreme Court.

🏈 Week in Sports Betting

Two industry leaders, DraftKings and FanDuel, formally withdrew from the American Gaming Association (AGA). This follows a sharp dispute regarding the future of prediction markets, which the operators intend to enter, treating them as financial instruments regulated by the federal Commodity Futures Trading Commission (CFTC).

Market expansion was visible on two fronts:

• DraftKings opened a new retail sportsbook at the Foxwoods El San Juan Casino in Puerto Rico, expanding its operational footprint.

• Missouri entered the final preparation phase to launch legal sports betting on December 1, 2025. The state began the account pre-registration period on November 17 with nine approved operators, including DraftKings, FanDuel, and BetMGM.

Additionally, BetMGM strengthened its ties in Pennsylvania by finalizing a multi-year partnership with the Pittsburgh Penguins.

Despite the positive expansion news, an Optimove report for October 2025 revealed significant instability in the US gaming market. While average deposits spiked by 17%, driven by the return of professional football, player retention rates plummeted by 15 percentage points, hitting a 12-month low of 60%.

📜 Week in Compliance and Legislation

Enforcement actions and market reactions to tightening regulations dominated the compliance landscape last week.

Caesars Entertainment agreed to pay a $7.8 million fine to the Nevada Gaming Control Board (NGCB) over allegations of inadequate anti-money laundering (AML) controls. The settlement addresses years of due diligence failures that allowed Mathew Bowyer, a convicted illegal bookmaker, to wager and access credit at Caesars properties despite numerous “red flags.” This marks the third-largest AML fine in Nevada this year.

In parallel, sweepstakes casino platforms faced massive regulatory pressure, leading to a widespread operator withdrawal from two states.

• Stake.us announced a complete exit from California by the end of December following a new law (AB 831) banning sweepstakes games that mimic casinos.

• In Tennessee, the Attorney General forced the withdrawal of several major brands (including High 5 Casino, Stake.us, RealPrize, and LoneStar Casino), challenging the legality of their “dual currency” model (Sweeps Coins), which is increasingly viewed as a loophole for unlicensed online gambling.

On the legislative and regulatory front, key debates focused on risk mitigation and jurisdiction:

• New York: The NYSGC intensified its offensive against prediction markets, threatening to revoke the licenses of current gambling operators (such as DraftKings or FanDuel) if they partner with prediction platforms. Simultaneously, the ORACLE Act (AB 9251) is under consideration; it would ban speculative contracts on sensitive topics and impose severe financial penalties, including up to $1 million per day for ignoring cease-and-desist orders.

• Nevada: A jurisdictional conflict is brewing, as a federal judge signaled he would likely lift the injunction protecting prediction market firm KalshiEx LLC from state enforcement actions, casting doubt on whether its sports contracts qualify as federally regulated derivatives.

• New Jersey: Bill S4794 was introduced to ban “micro-betting” (wagers on the outcome of a single play), citing the need to protect sports integrity and limit the risk of accelerated addiction.

• Florida: Bill HB 189 aims to establish felonies for operating unauthorized online gambling operations while creating a distinct regulatory framework for Daily Fantasy Sports (DFS).

• Wisconsin: A bill aimed at legalizing mobile sports betting (via a “hub and spoke” model) was pulled from the voting schedule. Commercial operators opposed the measure, deeming the requirement of a 60% revenue share for tribes “economically unfeasible.”

👤 Personnel Moves

Astralis Capital Management, a venture capital firm focused on the digital evolution of the global sports and gaming industry, appointed Adam Kaplan as General Partner to strengthen the firm ahead of the launch of Astralis Fund II LP. Kaplan brings over 16 years of experience, having previously served as Chief Operating Officer (COO) at SportsGrid.

Meanwhile, in the online casino sector, High Roller Technologies appointed Jake Francis as its new Chief Operating Officer (COO), replacing Emily Micallef, who is moving into an advisory role. Francis, with nearly two decades of industry experience, previously served as Senior Vice President of Operations at BlueBet.

At the industry association level, the Board of Directors of the American Gaming Association (AGA) elected Louis “Lou” M. Jacobs, CEO of Delaware North, as its next Chairman. He will begin his two-year term in January 2026, succeeding Michael Rumbolz.

Finally, the National Council on Problem Gambling (NCPG) announced the appointment of Heather L. Maurer, MA, CAE as Executive Director. Maurer, who will formally take office on January 7, 2026, brings over 25 years of experience in public health, policy, and non-profits, and will focus on positioning problem gambling within a public health framework.