Kalish Twitter Tirade, Senate Questions, Cardrooms Saved

DraftKings co‑founder Matt Kalish launched an extended Twitter attack on prediction markets that began last weekend and continued through the week. Kalish called prediction markets “niche,” criticized their marketing and regulatory treatment, and included profanity and personal attacks in several posts. A podcast reported links between Kalish’s comments and his DraftKings stock holdings.

On Capitol Hill, a Senate subcommittee hearing on Wednesday put Coalition for Prediction Markets Senior Advisor Patrick McHenry under questioning from Republican Senators Ted Cruz, Marsha Blackburn and John Curtis. The senators focused on how prediction markets are structured and regulated and raised questions about multi‑leg offerings.

One prediction‑market operator notified regulators that it plans to offer multi‑leg bets under the label “Combinatoric Athletic Outcome Contracts.” A longtime industry figure called the new label “peak obfuscation through nomenclature.”

In California, San Francisco Superior Court Judge Richard Darwin issued a preliminary injunction halting enforcement of new state rules that would have barred blackjack‑style games from cardrooms. The rules were issued by the state attorney general and the Bureau of Gambling Control. The agency had moved to restrict those games after pressure from tribal gaming interests. The injunction will remain in place for 45 days, and a further hearing is scheduled for June 30.

Prediction markets also drew scrutiny after a market on a televised reality competition tracked a likely winner well before the season finale. An operator opened the market about six weeks before the first episode aired; the leading contestant’s odds moved from roughly 75% to about 98% by the final episode. The operator reported that an internal review found no evidence of insider trading. Some participants called for stopping markets on events with predetermined outcomes.

DraftKings closed its Wrigley Field sportsbook this week, citing high tax burdens in Illinois and low customer traffic. The closure follows other recent shutdowns of stadium‑linked, brick‑and‑mortar sportsbooks as more wagers shift to mobile devices.

A gambling industry report found users on one prediction‑market platform lost more than $100 million on multi‑leg parlays so far this year. Shortly afterward, a sports publication published the same figures; that story and the author’s page were later removed. The publication identified the reporter as an independent contributor and denied use of artificial intelligence in the piece.

Circa Sports announced it will raise the guaranteed combined prize pool for three NFL pick‑’em contests to $30 million. Circa does not take a rake from those contests; jackpots increase if entry fees exceed the guarantee.

The week’s items included Kalish’s social posts, congressional questioning of a prediction‑markets adviser, a temporary court injunction preserving blackjack‑style play in California cardrooms, a disputed reality‑show market, DraftKings’ venue closure, a publishing dispute over industry figures, and Circa’s prize‑pool increase.