Written by :
Published on :
CMO of Saracen Casino Resort in Arkansas, Carlton Saff, has been monitoring the prediction market news in recent months and has watched as state regulated sportsbooks like FanDuel and DraftKings entered the fray.
A number of U.S. states, including his own, have launched campaigns to go after the likes of Kalshi and Polymarket.
"FanDuel openly offering 'illegal' product nationwide. The once-regulated gaming company has now gone rogue. Kudos to our AG @AGTimGriffin for calling this what it is. Illegal gambling."
@AGTimGriffin is one Arkansas Attorney General Tim Griffin.
The Arkansas AG first began assessing prediction markets back in October, three months after Sen. Bryan King requested Griffin's office to provide clarity on event contracts pertaining to both sports and elections. King worked on the letter with the request alongside state Senate Chief Legal Counsel Phillip Treat.
Griffin would release the AG Office opinion in October.
“The acts you describe meet the Supreme Court’s definition of gambling and gaming: a participant is risking money on a chance that some future event occurs,” wrote Griffin in a formal opinion prepared by Assistant AG William Olson and published on Oct. 23.
“The fact that a company has rebranded this gambling activity as a ‘prediction market’ does not protect it from scrutiny,.
“Further, it is unlawful for anyone to ‘receive or transmit information’ concerning sports or games ‘for the purpose of gaming.’ Thus, to the extent that a company like Kalshi facilitates wagers on sports outcomes or transmits data for gaming purposes (and your correspondence suggests that it does), those actions violate the law as well.
“Based on the information provided in the opinion request, a business model like you have described constitutes gambling or gaming and requires licensure.”
FanDuel announced a partnership with CME Group (NASDAQ: CME), the world's leading derivatives marketplace, last month.
FanDuel Predicts will expand access to financial and sports markets for millions of U.S. customers over the coming months.
The platform was expected to offer event contracts in all 50 states on benchmarks such as the S&P 500 and Nasdaq-100, prices of oil and gas, gold, cryptocurrencies, and key economic indicators such as GDP and CPI. In addition to financial markets, sports contracts will be available across baseball, basketball, football, and hockey in states where online sports betting is not yet legal, except on tribal lands. As new states legalize online sports betting, FanDuel Predicts will cease offering sports event contracts in those states.
"We're giving our customers a new platform to engage with the world around them - whether that's the next Fed rate decision or a sports event,” said James Cooper, Senior Vice President, Flywheel and New Ventures at FanDuel. “This launch in five states will provide valuable insights into customer engagement with this new platform, enabling us to refine our approach as we expand to additional states in 2026."
“CME Group prediction markets will enable a new generation of users to express their views on global benchmarks, economic indicators, sports and more,” said Lynne Fitzpatrick, President and Chief Financial Officer, CME Group. “This launch is a pivotal step for expanding the reach of our products to FanDuel’s millions of registered users across the U.S.”
Online sports betting was legalized in Arkansas when voters approved it as a constitutional amendment in November 2018 To date, the state has a limited number of licensed online sportsbooks.
Betly is the sportsbook associated with the Southland Casino Racing in West Memphis. Bettors can register and wager online via the Betly app or website.
The Saracen Casino Resort in Pine Bluff also has its own sports betting app, BetSaracen, which is its own proprietary brand and platform. The Saracen Casino has not partnered with the likes of a FanDuel or DraftKings.
Oaklawn Sports is the third branded online sportsbook in the state and is run by the Oaklawn Casino in Hot Springs. The Oaklawn Casino's online sportsbook is partnered with Kambi, which powers a number sports wagering sites nationwide including BetRivers and BetPARX.
- Gilbert Horowitz, Gambling911.com
