SiaPredict DailyAugust 27, 2026

Today's top 5

1. 1
   Regulatory

   Connecticut sues Kalshi to block its sports event contracts

   Connecticut Attorney General William Tong and Governor Ned Lamont filed a new state court lawsuit against Kalshi this week seeking an injunction to stop the company from offering sports-related event contracts to Connecticut residents, arguing they are unlicensed sports wagers under state consumer protection law. The suit follows a December 2025 cease-and-desist order and a federal court's earlier denial of Kalshi's bid to enjoin state enforcement, which Kalshi has appealed to the Second Circuit.

   The Block

   Sia's Take

   For compliance teams, this is a reminder that a favorable federal preemption ruling on appeal will not stop individual states from filing fresh, parallel civil actions of their own. While these actions have no immediate effect, compliance departments at licensed prediction markets should be prepared to adapt to such restrictions if/when they come into full effect.

2. 2
   IndustryCatch-up

   IG Group agrees to acquire Underdog for up to $1.3 billion

   UK-based IG Group agreed on July 30 to acquire daily fantasy and prediction-markets operator Underdog for an enterprise value of roughly $1.1 billion plus a $200 million earnout, picking up Underdog's futures commission merchant, designated contract market, and derivatives clearing organization licenses along with live distribution across 30 states. The deal turns IG Group into the owner of a full US regulatory stack rather than a distribution partner, and values Underdog as the third-largest US prediction-markets venue by regulated volume, trailing only Kalshi and Robinhood.

   iGaming Business

   Sia's Take

   IG Group's entrance into the the US regulated prediction market space shows that internationally licensed stock trading and investment firms are seeing prediction markets as a legitimate source for revenue and see both value and longevity in their operations, given the value of this acquisition.

3. 3
   Industry

   DraftKings launches 5-minute crypto prediction markets

   DraftKings began offering 5-minute Bitcoin and Ethereum price contracts this week through its Crypto.com-backed exchange arrangement, following Polymarket and Kalshi into the shortest-duration crypto contract format after CFTC self-certification in April. Short-duration crypto contracts already account for more than half of crypto trading volume on the two largest platforms, making the format a benchmark DraftKings is racing to match rather than a novel product category.

   Casino Beats

   Sia's Take

   DraftKings joins other major prediction market operators, including Kalshi, by offering spot markets for cryptocurrencies. This action shows that DraftKings is looking to become a major player in every category in the prediction market space. This space of spot contracts adds an additional layer of potential regulatory scrutiny as it opens DraftKings up to more potential collusion risk and other risks.

4. 4
   Industry

   Gaming-industry veteran calls sports prediction markets 'the biggest scam I've ever seen'

   In an August 26 interview, Victor Strategies EVP Gene Johnson argued sports event contracts are gambling products dressed up as derivatives, predicted the category will become 'indistinguishable from casinos' as it adds player props and parlays, and said the CFTC has acted more as a 'cheerleader' than a regulator. The comments echo the tribal-gaming and state-regulator view feeding pending litigation nationwide and add to pressure on the CFTC's forthcoming event-contract rulemaking to address consumer-protection and product-design concerns directly.

   Casino Beats

   Sia's Take

   Prediction markets and, more specifically sports-based contracts, are facing scrutiny from every angle including tribal and state regulated casinos, state & local regulators and now gaming-industry insiders. Regulation remains the greatest threat to the continued operations of licensed prediction markets and those currently operating under CFTC oversight should remain vigilant and adaptable to evolving regulatory oversight.

5. 5
   Industry

   Sportradar expands data and integrity deal with Polymarket to more than 20 leagues

   Sportradar and Polymarket announced an expanded agreement on August 27 extending Sportradar's data, streaming and integrity-monitoring services to Polymarket across more than 20 additional leagues and competitions, including the Bundesliga, Euroleague Basketball, and ATP Tour events, on top of an existing relationship covering MLB, the NHL, MLS, and UFC. Deepening reliance on a single data and integrity vendor across a broad set of leagues raises the bar other prediction-market operators will need to match to answer the manipulation concerns regulators and rival exchanges keep raising.

   GlobeNewswire