USA
January saw prediction markets push deeper into mainstream sports through a landmark MLS partnership and FanDuel’s nationwide rollout, while regulators escalated legal action at the state level in Nevada and Tennessee. Meanwhile, the NCAA urged federal regulators to suspend college markets over integrity concerns. Meanwhile, industry divisions widened as the American Gaming Association lost additional members tied to the expansion of prediction markets in relation to existing sports betting regulatory frameworks.
TL;DR: A Bite-sized Overview
- MLS partners exclusively with Polymarket: A multi-year deal integrates prediction data into league platforms and includes integrity-monitoring provisions.
- FanDuel expands nationwide: FanDuel Predicts launches in all 50 states, offering sports contracts in 18 jurisdictions, including states without legal sports betting.
- Nevada sues Polymarket: Gaming regulators seek injunction, arguing sports event contracts violate state wagering laws.
- Tennessee orders platforms to halt contracts: Kalshi, Polymarket, and Crypto.com face cease-and-desist letters, refund demands, and potential penalties.
- NCAA calls for a suspension of the college market: President Charlie Baker asks the CFTC to pause collegiate sports contracts due to integrity and athlete welfare risks.
- AGA membership turmoil widens: OpenBet and Sportradar exit as tech-focused operators back prediction markets and traditional groups defend state oversight.
MLS Signs Multi-Year Deal Making Polymarket Official US Prediction Market Partner
Major League Soccer (MLS) has entered a multi-year agreement with Polymarket as its exclusive prediction market partner in the United States. The partnership covers MLS regular-season matches, the All-Star Game, MLS Cup, and the Leagues Cup. This is Polymarket's second major league sports partnership; in October, they signed a multi-year contract with the NHL, along with Kalshi.
As part of the collaboration, Polymarket data will appear across MLS digital channels, with interactive features planned around live match play and real-time market sentiment. The league is positioning the integration as an engagement tool as North American soccer visibility increases ahead of the 2026 World Cup.
The agreement includes oversight provisions, including monitoring of trading activity and coordination regarding markets tied to league competitions.
NCAA Calls on Federal Regulator to Pause College Sports Contracts
NCAA President Charlie Baker has formally requested that the Commodity Futures Trading Commission (CFTC) suspend event contracts tied to college sports offered on prediction market platforms, arguing that current structures lack sufficient protections for athletes and competition integrity.
In correspondence to CFTC Chair Michael Selig, Baker urged a temporary halt until standardized safeguards are implemented. He pointed to deficiencies in integrity oversight, which has come into focus amid the largest NCAA point-shaving scandal in 75 years, geolocation controls, age restrictions, and advertising standards, and said the NCAA should have a voice in determining which collegiate markets are permitted.
FanDuel Expands Prediction Markets App Across the US
FanDuel has introduced its standalone prediction markets app in 50 states, making event-based contracts accessible nationwide.
The company is offering event contracts in selected non-betting jurisdictions while avoiding direct overlap with states where it already operates licensed sportsbooks. Available markets include major professional leagues and federal-level finance and economic contracts.
The expansion comes as multiple states challenge whether sports event contracts constitute unlicensed wagering, underscoring ongoing jurisdictional disputes between state regulators and federally supervised exchanges.
Nevada Files Lawsuit Against Polymarket Over Sports Contracts
Nevada gaming authorities have initiated a civil lawsuit against Polymarket, alleging that the company is facilitating unlawful sports wagering through its event contracts in the state.
The Nevada Gaming Control Board is seeking a court order to block access to sports-related contracts, asserting that the offerings violate state gaming statutes and disrupt the licensed betting framework. Regulators indicated that prior warning letters did not result in compliance. JustGamblers are following the development of this case.
Tennessee Directs Prediction Platforms to Cease Sports Contracts
Tennessee’s Sports Wagering Council (SWC) ordered Kalshi, Polymarket, and Crypto.com to stop offering sports-related event contracts to residents and to unwind open positions by the end of January.
State officials contend that the contracts meet the definition of sports wagering under Tennessee law and require a state-issued license, regardless of federal registration as derivatives exchanges. The council warned of escalating financial penalties and possible criminal referrals for non-compliance. A US judge quickly ruled that Kalshi can continue offering its services in Tennessee, blocking SCW’s attempt to enforce state gaming and sports wagering laws.
AGA Membership Declines as Industry Divide Widens Over Prediction Markets
The American Gaming Association (AGA) has seen additional departures from its ranks as disagreement intensifies over the role of prediction markets in sports. OpenBet and Sportradar did not renew their memberships, following the exits of DraftKings, FanDuel, and Fanatics—all of which are now offering prediction markets in standalone apps.
AGA continues to assert that sports event contracts constitute gambling and should remain under state and tribal oversight rather than federal derivatives supervision. It has strengthened coordination with tribal stakeholders to defend the existing regulatory structure. Recent exits show a growing divide between technology-driven operators pursuing predictive products and those with traditional sports betting interests focused on preserving the current regulatory framework.