SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 8/27/25:
- Trump Jr. Invests in Polymarket Despite Advisor Role at Rival Kalshi
- Ohio Regulator Warns Sportsbooks: Event Contracts Could Cost Licenses
- DraftKings Ends Credit Card Deposits Nationwide Amid Regulatory Scrutiny
- Polymarket Targets NFL Season With U.S. Return, Rivaling Kalshi’s Prediction Market Lead
- Robinhood Adds Football Prediction Markets, Sues Nevada and New Jersey Regulators
- FanDuel Partners With CME to Enter Prediction Markets
- DraftKings Reapplies for NFA Membership to Explore Prediction Markets
- NCAA Raises Alarm Over College Football Prediction Markets
Trump Jr. Invests in Polymarket Despite Advisor Role at Rival Kalshi
Donald Trump Jr.’s venture firm 1789 Capital invested “double-digit millions” into prediction market Polymarket, with Trump Jr. taking an advisory board seat even though he remains a strategic advisor to rival Kalshi. The move comes as Polymarket pushes back into the U.S. with CFTC-licensed operations and aggressive advertising, directly competing with Kalshi in sports and event contracts. Both companies are already under scrutiny from regulators and pro leagues who say their sports contracts resemble unregulated offshore betting. The dual involvement by Trump Jr. underscores the murky overlap between politics, finance, and federally regulated prediction markets, further fueling debate about legitimacy and oversight in this fast-expanding space.
Ohio Regulator Warns Sportsbooks: Event Contracts Could Cost Licenses
The Ohio Casino Control Commission (OCCC) issued a stark warning to licensed sportsbooks, cautioning that their licenses could be revoked if they offer or associate with federally regulated sports event contracts. The letter, sent to all licensees, signals the first explicit regulatory stance that prediction market involvement could jeopardize state gambling approvals. The warning follows moves by DraftKings and FanDuel to explore event contracts via federally regulated exchanges like the CFTC-licensed Kalshi. While FanDuel and DraftKings seek to frame their ventures as financial products, Ohio regulators stressed that even indirect partnerships or geofenced offerings may still raise suitability concerns. This escalates the tension between state regulators and federal oversight of prediction markets, as operators weigh new revenue opportunities against the risk of losing state-level sports betting licenses.
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DraftKings Ends Credit Card Deposits Nationwide Amid Regulatory Scrutiny
DraftKings announced it will no longer allow players to fund accounts with credit cards, a change implemented nationwide on August 25, 2025. The operator framed the move as a “strategic business decision” to protect customers from cash advance fees and high interest charges while improving deposit experiences. The decision follows a $450,000 fine from the Massachusetts Gaming Commission earlier this summer for allowing over 1,000 unlawful credit card wagers, though DraftKings has not directly linked the two. Customers can still deposit via debit cards, ACH, wire transfers, PayPal, Venmo, and Apple Pay where permitted. The change aligns DraftKings with operators like Fanatics and Sporttrade, who already prohibit credit card funding, and could mark a broader industry shift as regulators increasingly cite credit card restrictions as a responsible gambling safeguard.
Polymarket Targets NFL Season With U.S. Return, Rivaling Kalshi’s Prediction Market Lead
After a three-year absence from the U.S., Polymarket is preparing to relaunch in time for football season, backed by ads on Meta platforms promising “legal football trading” nationwide. The New York-based firm, which has already acquired a federally registered exchange, will offer sports prediction markets under Commodity Futures Trading Commission oversight, directly challenging Kalshi. Marketing materials even placed Polymarket odds alongside DraftKings, FanDuel, and BetMGM, blurring the line between prediction markets and sportsbooks. With larger U.S. social media reach and brand recognition than Kalshi, Polymarket aims to capitalize on its global popularity and re-establish itself as a leader in regulated event contracts just as competition between the two platforms heats up.
Robinhood Adds Football Prediction Markets, Sues Nevada and New Jersey Regulators
Robinhood announced it will now offer prediction markets on pro and college football games, including spreads and totals, through its partnership with Kalshi. The launch comes as the company sues regulators in Nevada and New Jersey, arguing their attempts to block sports event contracts are preempted by federal law. Courts have already granted Kalshi preliminary relief in similar cases, and Robinhood is seeking the same protection to keep its sports prediction offerings live. Positioning itself as a one-stop investing and trading platform, Robinhood framed football markets as a natural next step, with VP JB Mackenzie calling it a “no-brainer” given the sport’s popularity.
FanDuel Partners With CME to Enter Prediction Markets
Flutter Entertainment announced that FanDuel will partner with CME Group to offer event-based contracts through a new platform expected later this year. While the initial launch will focus on financial benchmarks like commodities, crypto, and economic indicators, analysts say the move could lay groundwork for federally regulated sports prediction products, bypassing high state taxes. The partnership comes amid a surge in prediction market activity, with rivals DraftKings, Robinhood, and Kalshi also racing to stake claims. Industry observers view FanDuel’s measured approach—starting outside sports but leaving the door open—as a potential watershed moment that could reshape U.S. betting and financial trading.
DraftKings Reapplies for NFA Membership to Explore Prediction Markets
DraftKings filed a fresh application with the National Futures Association under “Gus III Holdings,” aiming to register as a swap firm and introducing broker—potentially making it the first to bring futures-style sports contracts under NFA oversight. While membership isn’t required to operate prediction markets, it would bolster DraftKings’ credibility as it eyes federal oversight under the CFTC rather than state regulators. The move follows earlier reports that DraftKings considered acquiring Railbird, an existing CFTC-licensed exchange, and comes as PrizePicks and Underdog have also applied for NFA status. Industry observers see the application as part of a wider trend, with major sportsbooks moving toward federally regulated prediction markets to capture new revenue streams and avoid high state tax regimes.
NCAA Raises Alarm Over College Football Prediction Markets
The NCAA said it is “deeply concerned” about the rise of prediction markets covering college football outcomes, warning they could threaten competition integrity and student-athlete safety. The statement came days after Robinhood announced it would allow trading on NFL and Power 4 college games through a partnership with Kalshi, which has already self-certified spreads and totals with the CFTC. Unlike sportsbooks regulated at the state level, prediction markets fall under federal oversight, sparking legal battles in states like New Jersey and Nevada. NCAA officials pledged to push for guardrails to protect athletes, even as Robinhood and Kalshi insist federal protections are sufficient. Meanwhile, DraftKings and FanDuel are positioning to enter the prediction market sector, signaling further convergence between traditional sports betting and federally regulated exchanges.
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