Robinhood pulls NCAA contracts in NJ
Hours before the tip of the Sweet 16 Thursday (27 March), the New Jersey attorney general’s office served notice to Kalshi and Robinhood that the prediction markets allegedly facilitated “unauthorised sports wagers” within state lines. Over the first weekend of the NCAA men’s division I basketball tournament, Kalshi users placed nearly $250 million (£193.1 million/€230.8 million) on event contracts nationwide on March Madness.
Within the letter, the office made a request to the exchanges urging them to void all sports event contracts placed by New Jersey residents inside the state. The state’s division of gaming enforcement (DGE) issued the letter shortly before four regional semifinal games 27 March. To the surprise of some prediction market insiders, Robinhood complied that evening.
In a statement released Thursday night, Robinhood announced that it would no longer allow new users to enter into positions for contracts on the NCAA tournament.
No more college hoops betting at Robinhood in NJ. Have not heard of a parallel action in Kalshi. I don’t think Kalshi can just pull out of states, I think it has to end up in court. Arguably not great for optics that RH just pulls out, but they have more than prediction markets. https://t.co/D8I0ynu6os pic.twitter.com/K7pbgbchxb
— Dustin Gouker (@DustinGouker) March 28, 2025
For this year’s NCAA tournament, Newark is hosting the East regional for the first time since 2011. One regulation in New Jersey prohibits legal sports wagering on college sports events inside the Garden State. Prior to the regional semifinals on Thursday, Duke star Cooper Flagg stated that his teammates have received angry messages from gamblers on social media in response to a variety of betting props.
Yet Kalshi still offered in-game event contracts on Alabama-BYU, the first game of Thursday’s doubleheader. The Crimson Tide led the Cougars 46-38 at the 2:11 mark of the first half. At the time, a contract on Alabama to prevail contained an 84% probability on Kalshi. For a user to win a $100 on the contract, he needed to place more than $650 on the derivative.
It is unclear if Kalshi plans to pull the March Madness contracts by Friday’s deadline at 11:59pm ET. Dustin Gouker of gambling industry newsletter Straight To The Point broke the news on the cease-and-desist orders.
Nevada commission approves RWLV fine
As expected, the Nevada Gaming Commission (NGC) approved a stipulated settlement with Resorts World Las Vegas 27 March, resolving a 12-count complaint concerning the casino’s alleged anti-money laundering (AML) failings.
Under the settlement, the NGC imposed a $10.5 million fine on the casino, the second-largest fine in state history. The commission approved the settlement by a 4-0 vote, after commissioner Abbi Silver recused herself. The fine is drastically lower than a $20 million levy Wynn Resorts received in 2019 over the company’s failure to investigate sexual misconduct allegations against casino mogul Steve Wynn.
The RWLV settlement centred around the casino’s compliance standards regarding two illegal bookmakers, including Matt Bowyer, the head of an illegal California sports betting enterprise. Bowyer is the bookie who accepted more than $325 million in wagers from Ippei Mizuhara, the former interpreter for Shohei Ohtani. Bowyer and Damien Leforbes, another illegal bookmaker, allegedly laundered millions of dollars through the casino. Both individuals are awaiting sentencing on federal money laundering charges.
The Nevada Gaming Commission unanimously approved one of the largest penalties in state history over historic AML failures at Resorts World Las Vegas, second only to Wynn’s $20M fine in 2019 https://t.co/Wm0RGIJltJ pic.twitter.com/q4JqWAZDop
— GGB (@GlobalGamingBiz) March 28, 2025
According to a 10-page settlement, RWLV’s independent audit team will review, evaluate and report on the casino’s compliance protocols associated with its enhanced AML standards. The report from the audit team must be submitted within two years of the settlement. RWLV did not accept or deny any findings of wrongdoing at Thursday’s hearing.
Commissioner Brian Krolicki spoke at length on the long-term ramifications of the settlement across the Las Vegas Strip. Krolicki described the lack of control that extended from the casino floor to the C-suite as “breathtaking”. The commissioner also stressed that the case will serve as a “clarion call” down the Strip that the state takes issues on AML, compliance and audit deficiencies extremely seriously.
The Nevada Gaming Control Board has the latitude to reopen the probe if there are significant findings from an ongoing federal investigation. The provision served as a “critical” part of the negotiations, Krolicki emphasised.
Oklahoma bills advance in spite of governor’s plans for vetoes
Several Oklahoma bills passed through the state legislature this week, despite continued opposition from Governor Kevin Stitt.
Two bills authored by representative Ken Luttrell passed through the house by an overwhelming margin. The first, HB 1047, would enable tribal gaming compacts to be amended throughout the state for inclusion of sports wagering. The bill requires at least four tribal groups to amend their compacts. The other measure, HB 1101, would put the decision of legalising sports betting up for a referendum.
Under the bills, the state would receive 10% of operator revenues from sports wagering. Stitt has vowed to veto any legislation that grants the tribes exclusivity.
Governor Stitt gives his opinion on sports betting bills being considered by Oklahoma lawmakers.
Why he says he's not a fan of the legislation, and how he would do things differently: https://t.co/oTgxUGK8Km@OKCFOX @AdamKing_News @wsuares #okleg pic.twitter.com/UqyfP0q7TX
— David Chasanov (@DavidChasanov) March 27, 2025
“These are tribal-pushed bills that are only going to benefit the tribes and not the citizens of Oklahoma,” said Stitt this week.
The legislature can override a veto by passing a bill with two-thirds majority. Also this week, SB 585 passed in the senate. The bill would grant the Oklahoma City Thunder the right to receive a sports betting license.
The Thunder, who hold the NBA’s best record at 61-12, are the favorites at FanDuel Sportsbook to win the 2025 championship. As of Friday afternoon, the Thunder had odds of +175 to win their first-ever title.
Bet365 departs from the Chinese market
Bet365 informed customers that it will cease operations in China, removing a major obstacle in a potential M&A deal.
The company’s “grey market” activities in China have long provided a source of controversy. Now that Brazil has launched a regulated market, analysts at Regulus Partners described China’s as bet365’s last “material dark grey market”. With the departure from China, more than 90% of bet365’s revenues come from domestically regulated markets, according to Regulus.
By extricating itself from the illegal markets abroad, bet365 may become an attractive acquisition candidate in the US. In the 12-month period ending in March 2024, bet365 generated revenues of £3.7 billion, up 9% from the previous year, with operating profits of £397 million. The company could command a multiple comparable to Flutter at 18x of adjusted EBITDA, according to newsletter Earnings + More. At that rate, bet365’s valuation may approach $10 billion.
At the moment, bet365 is live in 13 US states, with Missouri poised to launch sports betting in the second half of the year. When Bet365 notched a deal with the St. Louis Cardinals on 24 March, it became the MLB team’s first mobile sports betting partner.
ICYMI on iGB
Sports Illustrated brand enters prediction market space following failed regulated sportsbook
Fertitta increases Wynn stake after pledging to relinquish interests for ambassador role
Underdog tops $1 billion valuation following Series C funding round
Kalshi announces RG tools, IC360 partnership as roundtable approaches
Community board in the Bronx opposes Bally’s New York proposal
Campaign contributions are part of the picture as Hawaii debates gambling proposals
