In a June 2026 interview, Abelson Sports chief betting officer Jeeve Jeyaratnam outlined the current regulatory conflict over US prediction markets. The CFTC classification of event contracts as financial products has triggered legal disputes with state gambling authorities.
Regulatory Jurisdiction and Legal Disputes
Following the PASPA ruling, gambling legalization and taxation remained state decisions. The federal government intervention through the CFTC has created a jurisdictional overlap that Jeyaratnam identifies as a regulatory gap. Market-ready platforms have entered the sector quickly, affecting the stock performance of established sportsbook operators. The resolution of this overlap will likely depend on the outcome of the next presidential election.Market Adaptation in 2026
Legal challenges continue across multiple jurisdictions. Several states have filed lawsuits against platforms they consider unlicensed on their territory, while the CFTC and Department of Justice have issued counter-suits. Jeyaratnam notes growing scrutiny over insider trading practices, particularly regarding platforms such as Kalshi. Democratic lawmakers have also raised concerns about government officials profiting from markets tied to international conflicts and mortality events.The US sports betting sector in 2026 shows operators adapting to the new competition. Major betting companies have launched proprietary prediction market offerings designed to avoid licensing conflicts with existing sportsbook regulations. The upcoming World Cup is projected to increase summer revenue, with sportsbook providers focusing on application usability to retain customer spending.
Earlier this year, Abelson Sports completed a corporate rebrand, which Jeyaratnam referenced during the discussion on industry shifts.