The Arizona Division of Gaming (ADG) has despatched communications to authorized sportsbooks within the state warning them that providing prediction markets outdoors of Arizona might put their license in danger.
Within the letter signed off by ADG director Jackie Johnson, operators have been suggested that providing occasion contracts and even partnering with such platforms to allow the exercise “outdoors the framework of state playing legal guidelines” might lead to critical enforcement.
The ADG has taken this step to advise operators of potential violations after stop and desist letters have been issued to prediction market suppliers Kalshi, Robinhood, and Crypto.com
As initially reported by Dustin Gouker, providing any prediction markets throughout america wouldn’t be appeared upon favorably within the Grand Canyon State. That’s the suggestion from the ADG directive, virtually appearing as a pre-emptive strike on operators.
It comes quickly after Underdog (a fledgling, registered fantasy sports activities operator in Arizona) opened with sports activities contracts in 16 U.S. states as a “tech supplier” for Crypto.com
Crucially, Arizona shouldn’t be one of many 16 jurisdictions.
Past this, no different regulated sportsbook supplier or fantasy sports activities operator has launched a prediction market providing within the state, which is likely one of the largest state-regulated sectors throughout the entire U.S.
FanDuel has entered right into a partnership with CME Group for prediction providers, however the association will solely apply to monetary markets.
Information: Ohio Regulator Warns Sportsbooks About Providing Prediction Markets
Letter from the Ohio On line casino Management Fee says that launching sports activities occasion contracts or working with prediction markets like Kalshi might put a sportsbook's license in jeopardyhttps://t.co/TOVLxHwgWg
— Dustin Gouker (@DustinGouker) August 25, 2025
Responsibility to uphold the integrity of gaming in Arizona
The event is an fascinating one, with Arizona seemingly following the lead of the Ohio Casino Control Commission, which warned about offering sports activities occasion contracts with out licensing approval, however this recent motion goes additional.
“Even when the licensee shouldn’t be related instantly with the providing or sale of occasion contracts to individuals in Arizona, its relationship with different individuals or entities and conduct in different jurisdictions stays at difficulty,” acknowledged Johnson within the letter.
He went on to emphasize that, “All of us have a duty to uphold the integrity of gaming in Arizona.
“Neither the residents of this state nor your gaming operations are, in the long term, served by unlawful, unlicensed and/or unregulated playing.”
The ADG director is on the report for criticising the Commodity Futures Trading Commission (CFTC) for failing to take sufficient motion towards prediction markets for providing sports activities occasion contracts.
Picture credit score: FlorianSchneider/Unsplash
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