Latest Developments in Wagering on Sports Events
Sports Betting Landscape Shifts Across the United States
In a series of developments, various states have seen changes in their sports betting industries, with California, Illinois, North Carolina, and Indiana at the forefront.
California: Sports Prediction Markets Under Scrutiny
The current legal status of sports prediction markets—including daily fantasy sports (DFS)—in California is that they are considered illegal sports betting under state law. This follows a formal opinion by California Attorney General Rob Bonta in July 2025, which categorizes both pick’em-style and draft-style DFS contests as unlawful betting activities prohibited under California Penal Code section 337a[1][3].
This legal stance intensified after a lawsuit by California tribes against DFS operators like Kalshi and Robinhood, reflecting broader tribal concerns over unregulated sports wagering activities[2]. The Attorney General's office rejected the operators' argument that DFS constitutes a game of skill, citing California Supreme Court precedent stating that wagering involving uncertain future events is illegal regardless of skill elements[1][3].
Operators are facing removal of certain types of contests and lawsuits related to this legal interpretation. Traditional sports betting remains prohibited also, and no formal legal framework for legal sports betting exists in California as of mid-2025[2][3]. The situation remains fluid, with ongoing legal battles and legislative discussions expected to shape the future regulation of sports prediction markets in California.
Illinois: Tax Disputes and Growing Industry
Two more Illinois sportsbooks are taking aim at a new Illinois tax on sports betting revenue. This follows the implementation of a minimum bet requirement by Illinois sportsbooks, including Hard Rock and BetMGM, in response to the state's "per-bet" tax[5].
Meanwhile, the Illinois sports betting industry has shown significant growth, surpassing its three-year projections in its first fiscal year, with over $6.4 billion in wagers[6]. Notably, DraftKings, bet365, Underdog, and BetMGM are among the companies also pursuing operating licenses in Missouri ahead of the December 1 launch[7].
North Carolina: Booming Sports Betting Industry
The North Carolina Lottery Commission reported the state's sports betting wagers for its first fiscal year, amounting to over $6.4 billion[8]. However, no specific details about the timeline of the state legalizing the industry in 2023 were provided in this report[8].
Indiana: Sports Betting Handle Decline
The Indiana Gaming Commission reported the sports betting handle for June 2025, with over $350 million, a decrease of 19% compared to May 2025[9].
California-Missouri: Market Expansion
DraftKings Sportsbook is reportedly negotiating to purchase Railbird Exchange, a sports prediction market operator recently licensed by the CFTC[10]. FanDuel Sportsbook has applied for one of Missouri's two direct mobile licenses, aiming to enter the market without an in-state partnership[11]. Flutter has agreed to purchase Boyd Gaming's 5% share of FanDuel Sportsbook for over $1.7 billion, gaining full ownership of the platform[12].
The Senate Agriculture Committee will vote on CFTC chair nominee Brian Quintez before the August recess[13]. FanDuel, Fanatics, and DraftKings are joining efforts to have the Illinois "per-bet" tax overturned[14].
These developments highlight the dynamic nature of the sports betting landscape across the United States, with each state navigating its own regulatory pathways and industry growth.
[1] California Attorney General's Office Opinion, 2025 [2] California Tribes Sue DFS Operators, Courthouse News Service, 2025 [3] California AG Says Daily Fantasy Sports are Illegal Gambling, ABC News, 2025 [4] Underdog Sports Sues California AG Over DFS Ban, Legal Sports Report, 2025 [5] Illinois Sportsbooks Implement Minimum Bet Requirement, Chicago Tribune, 2025 [6] North Carolina Sports Betting Surpasses Projections, AP News, 2025 [7] DraftKings, Others Pursue Missouri Sports Betting Licenses, Sports Handle, 2025 [8] North Carolina Lottery Commission Report, 2025 [9] Indiana Gaming Commission Report, 2025 [10] DraftKings Negotiates to Buy Railbird Exchange, Gambling.com, 2025 [11] FanDuel Seeks Missouri Direct Mobile License, Legal Sports Report, 2025 [12] Flutter Buys Boyd Gaming's FanDuel Stake for $1.7B, CNBC, 2025 [13] Senate Agriculture Committee to Vote on CFTC Chair Nominee, The Hill, 2025 [14] FanDuel, DraftKings, Fanatics Seek to Overturn Illinois Tax, Legal Sports Report, 2025
In California, the illegal status of sports prediction markets, including daily fantasy sports (DFS), has intensified, with DFS operators facing legal challenges and potential removal of contests, as DFS is categorized as unlawful betting activities under California Penal Code section 337a [1][3].
Meanwhile, Missouri is experiencing market expansion in sports betting, with DraftKings reportedly negotiating to purchase Railbird Exchange, a sports prediction market operator recently licensed by the CFTC, and FanDuel Sportsbook applying for a direct mobile license, aiming to enter the market without an in-state partnership [10][11].
