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.
LGCB puts DraftKings license in flux
After discovering that some DraftKings shareholders with a 5% or more stake in the company had not been subject to suitability investigations, which is standard in every legal jurisdiction, the Louisiana Gaming Control Board (LGCB) opted Thursday to offer DraftKings a four-month renewal instead of the previously expected five years. CDC Gaming reported that the commission extended DraftKings’ license through Feb. 19, 2027, with plans to hold another renewal hearing Feb. 18. The company’s current license expires Nov. 10.
The LGCB set forth seven conditions for DraftKings to meet, most within 30 days, so that the commission may continue its investigation. Chair Chris Hebert was clear in saying that there is no clear indication that DraftKings “has engaged in any wrongdoing” and called the decision a “measured regulatory response.”
Assistant Attorney General Delancey Houston told the LGCB that the Louisiana State Police Gaming Enforcement Division recently learned of the suitability issue, and that one shareholder asked to be labeled as an institutional investor.
“The investigation is incomplete at this time,” Houston said, per CDC. “The division also has some concerns about the recent allegations brought against DraftKings and therefore additional time is needed for the division to fully investigate those allegations.”
The commission questioned DraftKings executives about the company’s use of artificial intelligence in relation to targeting losing bettors and identifying problem gamblers. The questions arose after a New York Times story raised issues about DraftKings’ AI use.
“We do not use AI in any way to target losing gamblers by any means,” DraftKings co-founder Paul Liberman told the commission.
— Jill R. Dorson
Alberta’s gray grace period ends
Tuesday marked the end of a 90-day grace period in Alberta for gray market operators to come under the province’s legal structure, which went live July 13. At this point, consumers could lose access to unregulated sites. There are 51 provincially licensed online gaming sites operated by 30 companies, including more than a dozen sports betting platforms. U.S.-based operators Bally Bet, BetMGM, Caesars Sportsbook, DraftKings, and FanDuel are among those in the market.
At the Global Gaming Expo in Las Vegas last month, Minister of Service Alberta and Red Tape Reduction of Alberta Dale Nally addressed the deadline, saying his agency would “pull every lever at our disposal to make sure that the good guys are rewarded, and that we keep as much of the illicit market out of the province as possible.”
So far, neither the Alberta iGaming Corp. nor its co-regulator, Alberta Gaming, Liquor & Cannabis (AGLC), has released any guidance on next steps. According to Gaming News Canada, any unregulated site was required to shutter Tuesday and the AGLC will be tasked with enforcement. PokerStars has already left the market.
Alberta in July became the second Canadian province behind Ontario to launch legal online gaming.
— Jill R. Dorson
Mansour alludes to offshore possibility
Kalshi CEO Tarek Mansour was hardly pessimistic this week when discussing the legal fight over his company’s sports event contracts. If need be, based on any possible U.S. Supreme Court decision against them, companies like his will simply shift their base of operations overseas, he told an audience Wednesday at a DC Fintech Week event in Arlington, Virginia, according to a CoinDesk report.
“We feel pretty good about where we stand overall,” Mansour said, alluding to how it won’t necessarily come down to a question of whether Kalshi is regulated by states or by the federal Commodity Futures Trading Commission. “It’s not a choice of state versus federal market. It’s a choice of whether prediction markets exist in the U.S. or whether they go offshore.”
Kalshi and its peers, obviously, would prefer to see the Supreme Court ultimately rule in their favor so they can continue offering sports event contracts as they have been without state-by-state oversight. Mansour maintains he believes that will be the case.
“The notion that sports does not have economic consequence is ludicrous,” and they are therefore legal swaps, he said, per the report.
Ohio proposes change to marketing rules
The Ohio Casino Control Commission continues to tweak its rules, and it sent out a proposed change Friday that would further limit marketing materials and promotions that could be sent to players who are using problem gambling tools.
The regulator would add the following text to Regulation 3775-16-03 (Sports gaming accounts):
(E) A sports gaming proprietor must not send direct advertisements containing marketing
or promotional material, including push notifications or any other digital or physical
direct marketing, to any individual within forty-eight hours of the individual enabling
or changing any responsible gambling tool or mechanism, including wager or deposit
limits, other than during initial account creation.
A public comment period will be open through Oct. 30. Licensees can submit public comment to [email protected].
— Jill R. Dorson
Massachusetts regulator examining AI use
Massachusetts Gaming Commission (MGC) Executive Director Dean Serpa sent a letter Oct. 9 to state-regulated sports betting platforms requesting information about how they use artificial intelligence and machine learning.
In the letter, Serpa puts forth eight questions, touching on everything from “general use” of AI by sports betting operators and what kind of data is collected and used to how AI systems make decisions about promotions and who to send them to. The MGC is also interested in what kind of human oversight is involved in AI use.
Licensed sportsbooks are asked to respond by Nov. 3. Responses will be used as the commission develops policy and regulations around AI use. New York’s gaming regulator this month approved a proposal to impose its own restrictions on how operators can use AI to target customers.
— Jill R. Dorson
Odds and ends
- Underdog is suing the state of Tennessee, which has ordered the company to stop offering prediction market sports event contracts in violation of state law. SBC Americas reported that while the U.S. Sixth Circuit Court of Appeals has already ruled that Tennessee and Ohio can enforce their gambling laws against the leading prediction market, Kalshi, the suit from Underdog states that it wants an injunction from such enforcement until the U.S. Supreme Court ultimately rules on the legality of sports contracts.
- There’s a new partnership between ProphetX and Juice Reel, enabling users of the sports-oriented app to trade directly on the prediction market operator’s regulated exchange. An announcement Wednesday touted the deal as a smooth integration of what the two companies offer for sports fans who closely track their performance to be able to make trades.
ICYMI
NGCB’s Dreitzer: Here’s Why Sports Event Contracts Are ‘Scams’
DraftKings’ DKeX Self-Certifies Injury-Protected Markets
NBA Tells Sportsbooks To Stop Offering Certain Bets And Parlays
Midterm Market Monitor: The Vote Is In, And Americans Don’t Like Election Betting
BetMGM Focuses Marketing On Top Spenders Amid Competition From Prediction Markets
Jalen Smith Sentenced To Six Years In Prison In NCAA Betting Case
Damien LeForbes Sentencing In Illegal Bookmaking Case Continued
