{"id":912270,"date":"2026-06-12T17:12:12","date_gmt":"2026-06-12T22:12:12","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/06\/12\/aga-claims-states-have-now-lost-1-billion-to-sports-prediction-markets\/"},"modified":"2026-06-12T17:12:12","modified_gmt":"2026-06-12T22:12:12","slug":"aga-claims-states-have-now-lost-1-billion-to-sports-prediction-markets","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/06\/12\/aga-claims-states-have-now-lost-1-billion-to-sports-prediction-markets\/","title":{"rendered":"AGA claims states have now lost $1 billion to sports prediction markets"},"content":{"rendered":"
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\"Fans
Image source: ESL \/ Intel Extreme Masters<\/figcaption><\/figure>\n

The American Gaming Association (AGA) claims that states have now lost over $1 billion in tax revenue to sports prediction markets.\u00a0<\/p>\n

The organization, which comprises casinos, tribal gaming groups, and sports betting operators, is ramping up its efforts to curb the growth of sports prediction markets.\u00a0<\/p>\n

\u201cPrediction market platforms are offering illegal sports betting nationwide outside the state and tribal regulatory frameworks that protect consumers,\u201d said the AGA\u2019s site<\/a> dedicated to sports event contracts.\u00a0<\/p>\n

Underneath, a ticker shows the amount of state gaming tax dollars lost since prediction markets began offering contracts on sports events. The figure exceeded $1 billion on Thursday.\u00a0<\/p>\n

It is unclear how the AGA generates this figure. States without legal sports betting allow residents to wager on prediction markets, but they have not set tax rates.\u00a0<\/p>\n

The main point appears to be that prediction markets continue to offer US citizens across most states the chance to wager on sports, including almost all esports events.\u00a0<\/p>\n

AGA\u2019s Three Points Against Prediction Markets<\/h2>\n

The AGA\u2019s site goes on to state three main complaints about prediction markets:<\/p>\n

    \n
  1. Framing Sports Wagering like Investing is Misleading Consumers<\/li>\n
  2. Consumers Expect Oversight That Doesn\u2019t Exist<\/li>\n
  3. Prediction Market Advertising Has Surged and Does Not Include Responsible Gaming Safeguards<\/li>\n<\/ol>\n

    It claims that users are being misled into believing they are investing, when in reality they are engaging in sports betting. Additionally, platforms lack regulation, as the Commodity Futures Trading Commission (CFTC) has not enforced strict rules on operators, unlike state gambling regulators.\u00a0<\/p>\n

    Finally, platforms are not held to the same responsible gambling standards as traditional betting platforms. Kalshi recently signed up<\/a> to the National Council on Problem Gambling (NCPG) and urged other prediction markets to do the same.\u00a0<\/p>\n

    However, the company\u2019s ads have been criticized for promoting irresponsible gamnbling. For example, one TikTok ad showed the caption, \u201cI was about to be unable to pay my rent, but I got two years\u2019 of rent through Kalshi\u2019s predictions. It\u2019s amazing!\u201d<\/p>\n

    <\/figure>\n

    This kind of ad would be unlikely to get past regulatory scrutiny at a licensed sportsbook. Most states also force operators to display responsible gambling messages.\u00a0<\/p>\n

    Battle Against Prediction Markets Intensifies<\/h2>\n

    The AGA and other groups are ramping up their efforts against prediction markets. Last week, a group named FairPredicts launched a campaign focusing on the lies it claims prediction markets, particularly Kalshi, tell customers.\u00a0<\/p>\n

    Kalshi responded by sending a cease-and-desist letter<\/a> to the organization, which has not revealed its source of funding. Kalshi claims it is funded by casino-backed interest groups, such as members of the AGA.\u00a0<\/p>\n

    Kalshi also filed a lawsuit against Rhode Island last week, and the state responded with its own lawsuit against Kalshi.\u00a0<\/p>\n

    The CFTC has this week filed its own lawsuit against Rhode Island, alleging the state is overstepping its boundary and that prediction markets are under the agency\u2019s exclusive jurisdiction. It has done the same in Arizona, Connecticut, Illinois, and Minnesota.\u00a0<\/p>\n

    \u201cCFTC-registered exchanges have faced an onslaught of lawsuits seeking to limit Americans\u2019 access to event contracts and undermine the CFTC\u2019s sole regulatory jurisdiction over prediction markets. This power grab ignores the law and decades of precedent,\u201d said CFTC Chairman Michael Selig in a press release<\/a>.\u00a0<\/p>\n

    Trump Offers Support To CFTC and Prediction Markets<\/h2>\n

    President Donald Trump also sent a strong message in support of the CFTC and prediction markets this week. Trump Media has partnered with Crypto.com, while his son, Donald Trump Jr., serves as a strategic advisor to both Kalshi and Polymarket.\u00a0<\/p>\n

    \u201cIt is critically important that the CFTC\u2019s exclusive authority over Prediction Markets is maintained, and that they will thrive,\u201d Trump wrote in a post on his social media platform Truth Social.\u00a0<\/a><\/p>\n

    \u201cUnder my leadership, we are setting \u2018rules of the road\u2019 that are the Gold Standard for the States. We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules!\u201d<\/p>\n

    Chris Christie serves as an advisor to the AGA. He was also instrumental in paving the way for legal sports betting in the US, winning a decisive Supreme Court ruling when serving as Governor of New Jersey.\u00a0<\/p>\n

    The AGA looks set to continue its battle with prediction markets. DraftKings and FanDuel have already left the organization over their involvement in the industry, which has become increasingly divisive.<\/p>\n<\/p><\/div>\n

    Adam Roarty
    Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    Image source: ESL \/ Intel Extreme Masters The American Gaming Association (AGA) claims that states have now lost over $1 billion in tax revenue to sports prediction markets.\u00a0 The organization, which comprises casinos, tribal gaming groups, and sports betting operators, is ramping up its efforts to curb the growth of sports prediction markets.\u00a0 \u201cPrediction market<\/p>\n","protected":false},"author":1,"featured_media":912271,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2602,1066],"tags":[5264,9978],"class_list":["post-912270","post","type-post","status-publish","format-standard","has-post-thumbnail","category-claims","category-states","tag-claims","tag-states"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/912270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=912270"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/912270\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/912271"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=912270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=912270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=912270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}