Top line
A federal judge in Utah handed Kalshi its first final loss in the nationwide state-preemption fight, rejecting every CEA argument and setting up a Tenth Circuit appeal. The ruling lands alongside a wave of federal scrutiny, from a CFTC settlement with George Santos to a Senate push against wildfire contracts, even as capital keeps flowing into the sector with Polymarket reportedly in talks for a $20 billion-plus valuation.
Today's top 10
- 1Regulatory
Federal judge grants Utah summary judgment against Kalshi, rejecting CEA preemption
Judge Robert J. Shelby (D. Utah) granted summary judgment for the state on August 4, rejecting each of Kalshi's preemption theories under HB 243 without reaching whether its sports contracts qualify as CEA swaps. It is reportedly the first final, non-preliminary federal judgment against Kalshi in the state-preemption wave; Kalshi says it will appeal to the Tenth Circuit. Operationally, this is the first crack in an otherwise operator-favorable litigation record and gives states a concrete template to cite in pending suits.
KUER - 2Regulatory
CFTC settles manipulative-trading charges against George Santos over Kalshi contract
The CFTC ordered the former congressman to disgorge $17,569.98, pay a $17,500 civil penalty, and accept a three-year trading ban, resolving the probe opened in June over misleading statements about his State of the Union attendance that moved a Kalshi event contract. It is a concrete enforcement bookend to the CFTC's insider-trading advisory and signals the agency will pursue individual traders, not just platforms.
CFTC - 3Regulatory
Eight Senate Democrats press CFTC to bar wildfire event contracts
Sens. Merkley, Cortez Masto, Rosen, Padilla, Shaheen, Schiff, Heinrich, and Wyden sent a letter demanding Chairman Selig ensure registered exchanges stop listing contracts that let users profit from active wildfires, citing arson-incentive and optics concerns. Watch for a CFTC response or staff guidance narrowing eligible event-contract categories.
Sen. Cortez Masto press release - 4Regulatory
Minnesota governor bars state employees from trading on nonpublic information
Gov. Walz signed an executive order barring state employees from using nonpublic information to trade prediction-market contracts, a day after a federal judge enjoined Minnesota's broader statutory ban. It is a narrower, governance-focused pivot rather than a renewed attempt to block platforms outright, worth tracking as a model other states may copy.
Civic Media - 5Regulatory
Proposed class action calls DraftKings Predictions unlicensed sports betting
A California resident filed a multi-state proposed class action alleging DraftKings Predictions is functionally identical to DraftKings' regulated sportsbook, citing roughly 66% of platform volume from sports contracts. Private plaintiff suits are a newer legal front alongside state AG and CFTC litigation; compliance teams should track whether other states' plaintiffs follow the same template.
Bloomberg Law - 6Industry
Polymarket reportedly in talks for $1B raise at $20B+ valuation
Bloomberg reported Polymarket is in early talks to raise roughly $1 billion at a valuation above $20 billion, more than double its October 2025 mark and up from the $15 billion round it closed in April with D.E. Shaw, G Squared, and Intercontinental Exchange. The reported target still trails Kalshi's $22 billion May valuation and separately reported $40 billion talks, underscoring how much capital is still chasing the category.
CoinDesk - 7Industry
Fanatics Markets to acquire a DCM and clearinghouse from BGC
Fanatics agreed to acquire Water Street Labs (a CFTC-registered DCM) and CX Clearinghouse from BGC Group, giving it a directly owned exchange and clearinghouse rather than relying on a partner venue. It is the clearest sign yet that scaled operators see owning DCM infrastructure as a durable moat rather than a one-time compliance cost.
Fanatics - 8Industry
FanDuel Predicts moves sports and novelty contracts from CME to Crypto.com
Flutter restructured the FanDuel Predicts joint venture so Crypto.com now supplies all sports and novelty contracts, while CME (which keeps its 51% JV stake) supplies financial contracts only. The realignment follows CME CEO Terry Duffy's July remarks distancing the exchange from sportsbook-style products, a useful signal of how the large DCMs are triaging reputational risk.
DeFi Rate - 9Industry
Kalshi signs data and integrity partnership with Genius Sports
The deal covers Genius's real-time soccer data across the EPL, Serie A, Liga MX, and other leagues to settle Kalshi's sports contracts, plus trading-activity monitoring under Genius's information-sharing network. It mirrors an existing Genius Sports arrangement with Polymarket and continues the trend of prediction-market operators buying credibility with sports-data integrity infrastructure.
Kalshi - 10Industry
Cboe files for Phase 2 company-fundamentals binary contracts, raises FY guidance
On its Q2 earnings call, Cboe raised full-year organic revenue growth guidance to mid-to-high teens on a 30% options-revenue surge and filed with the SEC for a Phase 2 company-fundamentals binary suite (EPS, revenue, margins) across 23 companies, targeting a September launch. It is a concrete data point on how fast exchange incumbents are scaling event-contract product lines once the first phase proves out.
Bloomberg