EndGame: Prediction Market Insider Trading, Laster Back In Prison

The U.S. sports betting world moves quickly and unpredictably in 2026. In order to properly take stock of it all, we offer InGame’s “EndGame,” an end-of-week compilation of the top storylines, some overlooked items, and all the other news bits from this past week that we found interesting.

NYT article focuses on insider trading

The New York Times reported this week on the growing concern about potential insider trading taking place on prediction markets. The article stated that Kalshi referred 32 possible insider traders to the Commodity Futures Trading Commission (CFTC) from April to June, and that the commission has “as many as 20 ongoing investigations based just on Kalshi’s evidence.” Other investigations could also be taking place through reports from another dozen prediction markets.

Despite the wider suspicions, the newspaper noted that the federal agency has brought civil charges thus far against just three prediction market bettors, and it attributed that in part to CFTC staff cuts. It “is operating with its smallest staff in at least 20 years,” the article said, at a time when prediction market activity has skyrocketed with the addition of sports event contracts.

While the report stated “the opportunities for making a buck off confidential information” have clearly increased, it quoted this response from commission spokeswoman Brooke Nethercott: “The agency has the staff, expertise and tools necessary to conduct effective oversight over these markets.”

Laster back in prison in betting case

Deniro Laster, former NBA playerTerry Rozier’s childhood friend and alleged co-conspirator in an illegal betting case, is back in prison after a federal judge in New York revoked his bond Tuesday. According to an ESPN report, Judge LaShann DeArcy Hall had no patience for arguments from Laster’s attorney, Matthew Evan Corcoran. At issue was Laster contacting several persons on a no-contact list and posting rat emojis on Instagram.

Per an Aug. 11 letter from prosecutors, Laster requested to have a document unsealed that would reveal witness identities “whom Mr. Laster attempted to tamper with and who should not be further endangered through dissemination of their identities. Continued sealing of that information, including as to Mr. Rozier, is therefore appropriate and necessary to protect those perceived witnesses.”

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Laster was immediately taken into custody as Rozier looked on from the defense table. Later in the hearing, DeArcy Hall denied Rozier’s request for a change of venue from New York to Florida.

— Jill R. Dorson

Massachusetts OKs new table tennis bets

The Massachusetts Gaming Commission on Thursday approved wagering markets for the TT Elite Series table tennis series at DraftKings’ request. The markets were previously banned after the commission decided in February to only allow table tennis events governed by the International Table Tennis Association.

A Sports Wagering Division review revealed improved integrity protocols, with 27 other North American legal sports betting jurisdictions in which DraftKings is live allowing the markets. After consulting with the International Betting Integrity Association and learning that DraftKings has expanded its international live trading team, staff recommended approval, and the commission unanimously voted to add the markets back.

The commission also approved five additions or updates to Penn’s house rules. In basketball, “first X minute markets” will be settled using official data from the sports governing body. Clarifying language was also added about when and where funds confiscated as a result of betting by a prohibited person should be directed.

— Jill R. Dorson

Odds and ends

FanDuel earned itself $95,000 in fines last month from the Iowa Racing and Gaming Commission for offering improper betting markets on basketball and soccer, according to an SBC Americas report. The infractions in 2024-25 related to offering bets on games in the unsanctioned Maharlika Pilipanas Basketball League and, in soccer, on the issuance of yellow and red cards, which are prop bets banned as dependent on officiating decisions.
Two Mississippi State football players have received low-level penalties for placing wagers on NFL and NBA games, the Clarion Ledger reported. The names of the athletes were not disclosed, but they were violating an NCAA bylaw that prohibits sports wagering by athletes, staff members, and conference employees. The bets were placed with Kalshi rather than a traditional sportsbook, the article stated.
Add Circa Sports owner Derek Stevens to the list of those in the sportsbook industry lashing out at the intrusion of prediction markets into the sports betting space. He told CDC Gaming in an interview that the prediction markets are “pirates” or “thieves” effectively avoiding all of the regulatory standards, tax payments, and responsible gambling safeguards that sportsbooks like his have to abide by. He stated Circa nonetheless “can compete pretty well” with the prediction markets, though it has seen some impact in reduction of its handle share.
The upcoming NFL and college football seasons are expected to be the biggest boon yet for prediction market sports contracts, and Polymarket has made some new hires in advance of it. CNBC reported that Travis VanderZanden, founder of E-Scooter startup Bird, is Polymarket’s new chief growth officer overseeing marketing. Also, Megan McGrath, formerly of Robinhood, has become the chief compliance officer for Polymarket’s U.S. exchange, with Natalie Oblazny, formerly at Coinbase, heading regulatory affairs for the company’s domestic platform.