BetProof Daily Intelligence
Thursday, February 19, 2026
CFTC Declares War on States Over Prediction Markets
The CFTC filed an amicus brief asserting federal authority over prediction markets like Kalshi and Polymarket, directly challenging states that want to ban these platforms as illegal gambling. Chairman Michael Selig told Nevada, New Jersey, and Massachusetts: we will see you in court.
With Trump Jr. invested in Polymarket and advising Kalshi, this regulatory showdown has political fuel that wont burn out regardless of the legal outcome.
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Rivalry Corp Suspends Operations, Lays Off Half Its Staff
Toronto-based esports betting company Rivalry Corp has suspended all player activity and cut nearly 50% of its workforce, months after reporting record Ontario performance. Stock is down over 90% in early 2026, and the board is exploring asset sales or a full acquisition.
Rivalry nailed Gen Z meme culture and social-first engagement but couldnt convert attention into sustainable revenue. The crypto pivot was too little, too late.
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Stake Enters Denmark with Five-Year License
The worlds largest crypto casino has officially launched in Denmark after securing a five-year license. Stake will set up its Danish HQ at Parken Stadium, home of FC Copenhagen, starting March 1.
Stake is clearly serious about shedding its gray-market reputation through regulated market entries. Denmarks track record as a regulatory success story gives them credibility that could unlock further European licenses.
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Michigan Proposes Illinois-Style Per-Bet Tax
Governor Whitmers FY27 budget includes a 0.25-0.50 per-bet tax on sportsbooks and a hike to 36% for top iGaming operators making over 185M annually. The plan would eliminate promotional free play deductions and target an estimated 195M in yearly revenue for Medicaid.
Michigan is essentially copying Illinois playbook, and early Illinois data already shows a 25% decline in wagers. Expect operators to pass costs to consumers, shrinking the legal market and pushing players offshore.
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Indiana Advances Sweepstakes Casino Ban
Indianas Senate has advanced HB 1052, banning sweepstakes-style online casinos operating under dual-currency promotional models. If enacted, Indiana joins California, New York, Michigan, Nevada, and others that have already shut down this gray-market model.
The sweepstakes squeeze is now a full regulatory rout. What started as a loophole is being systematically eliminated state by state.
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UKGC Data: Slot Limits Cut Sessions, Not Revenue
New UKGC data shows online slots GGY grew 10% YoY to 788M GBP in Q3 despite stake limits, but sessions over an hour dropped 16% and average session length fell to 16 minutes. Monthly active accounts hit a new peak at 4.6 million.
Early evidence that stake limits can reduce harm without destroying operator revenues. Shorter sessions with more players points to healthier engagement.