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From tribal opposition to sports event contracts to fresh scrutiny of Robinhood and Kalshi, March was packed with regulatory controversy that continues to threaten the prediction markets.
FanDuel launched new tools to keep March Madness bettors engaged, while Sports Illustrated announced a new venture into event-based markets along the lines of sports prediction markets. Meanwhile, YouTube introduced stricter gambling content rules aimed at curbing exposure to underage viewers. Here's a look at the top stories from the past month.
TLDR: a Bite-sized Overview:
- Tribal Groups Oppose Sports Prediction Markets: Eleven tribal entities submitted comments to the CFTC, warning that sports prediction markets could undermine tribal sovereignty and jeopardize billions in gaming revenue.
- Robinhood’s NCAA Betting Feature Triggers State Probe: Robinhood’s launch of a Kalshi-powered sports prediction hub led to a Massachusetts subpoena over concerns about gambling-style features tied to investment accounts.
- Sports Illustrated Announces SI Predict with Galactic: SI Predict, launching in Q2, will let users bet on non-outcome sports event elements. The platform avoids traditional gambling regulations through its non-custodial setup.
- FanDuel Adds Multi-Round Parlays and Bet Back Token: FanDuel rolled out March Madness features, including bracket-integrated parlays and a token that refunded Bonus Bets when wagers trended poorly.
- YouTube Cracks Down on Gambling Content: YouTube began age-restricting online casino videos and banned links or mentions of unapproved gambling sites, aiming to protect underage users and close past loopholes.
Indian Gaming Association Raising Concerns About Sports Prediction Markets
Native American tribes are warning that the expansion of prediction markets into sports contracts poses a serious threat to their sovereignty and gaming revenues.
Ahead of an upcoming CFTC roundtable, 11 tribal entities submitted comments opposing the move, arguing that it undermines their exclusive rights under the Indian Gaming Regulatory Act and puts billions in revenue at risk. “Allowing sports contracts to be listed and traded will interfere with the sovereign right of tribes,” stated the Indian Gaming Association.
Platforms like Kalshi and Polymarket currently operate in all 50 states without paying gambling taxes or following responsible gaming rules. Tribal leaders argue this creates an uneven playing field and weakens state-level oversight. As JustGamblers has reported on several occasions, lawmakers and industry stakeholders have raised similar concerns.
Per our news update in February, DraftKings is optimistic about sports prediction markets and registered an entity called ‘DraftKings Predict’ with the National Futures Association (NFA) in 2024. Still, with rare tribal unity and mounting industry pressure, sports event contracts face a challenging regulatory road ahead.
Robin Hood Launch Sports Prediction Hub
Robinhood’s launch of a sports prediction hub powered by Kalshi has triggered a regulatory probe in Massachusetts. The platform, introduced on March 17, lets users place contracts on NCAA March Madness outcomes. Massachusetts Secretary Bill Galvin issued a subpoena demanding internal documents and user data, citing concerns about betting-style features tied to investment accounts.
Galvin called the feature a "gimmick" targeting younger investors. He warned that blurring the line between investing and gambling could undermine safeguards for both industries. Robinhood defended the offering, noting that Kalshi, a CFTC-regulated exchange, powers it and operates under federal oversight.
Sports Illustrated Plans to Launch Sports Prediction Platform
Following Robinhood’s entry into prediction markets, Sports Illustrated is launching its own platform in partnership with UK-based firm Galactic. The new venture, SI Predict, will let users bet on non-outcome elements of sports events, such as halftime show setlists or stadium attendance, rather than game results.
The platform is expected to launch in Q2 and aims to drive fan engagement through opinion-based markets, avoiding traditional gambling mechanics.
The platform will operate under CFTC and UK FCA guidance, though as a non-custodial platform, it avoids direct regulation. Sports Illustrated’s pivot follows the shutdown of SI Sportsbook and Casino after cutting ties with 888 Holdings, signaling a shift from traditional online sports betting to event-based derivatives.
FanDuel Releases New Feature Representing the Next Step in Parlay Building
FanDuel introduced new product features ahead of March Madness, including a multi-round tournament parlay builder and a Bet Back Token. The exclusive “Bet Your Bracket” feature allowed customers to combine picks across different men’s basketball tournament stages into a single parlay, such as betting on a team to reach the Sweet 16, win their region, and take the championship. FanDuel stated it was the first sportsbook to offer this type of bracket-integrated parlay.
The Bet Back Token allows bettors to get their stake back in Bonus Bets if the wager loses. Customers can apply the token up to the final buzzer for an immediate refund, whether due to an injury, a blowout loss, or a parlay leg collapsing. FanDuel said the features were designed to provide more flexibility during the tournament and keep bettors engaged even as brackets began to bust.
New YouTube Gambling Content Policies as of March
In March, YouTube updated its gambling content policies, announcing stricter rules to limit access to unregulated betting sites and protect underage viewers. As of March 19, creators were prohibited from including links, visuals, or verbal mentions of gambling websites that haven’t been reviewed by YouTube or fail to meet local legal standards. The platform also began age-restricting videos promoting online casinos, blocking access for users under 18 or those not logged in.
The policy shift comes amid growing concerns about gambling content targeting younger audiences, especially as online sportsbooks gain popularity in the U.S.
YouTube stated that it would remove videos promising “guaranteed returns” and close loopholes previously used to promote gambling indirectly. JustGamblers has reviewed the new gambling content policies and found that our current practices relating to YouTube videos, such as video reviews, do not breach any rules.