BetProof Daily Intelligence
Friday, February 20, 2026
CFTC Declares War on States Over Prediction Markets
The CFTC filed an amicus brief asserting exclusive federal jurisdiction over prediction markets, directly challenging state regulators in Nevada, Massachusetts, and over a dozen states that classify sports event contracts as illegal gambling. Chairman Selig backing Kalshi and Polymarket against state enforcement. Whether prediction markets live under one federal framework or fifty state gambling codes is the single biggest regulatory question in the space right now.
Virginia Moves to Legalize iGaming, Targeting $12B Unregulated Market
Both chambers passed bills to legalize online casino gambling, citing $12 billion flowing to offshore operators. The legislation needs passage in both the 2026 and 2027 Assemblies before becoming law. Another domino in U.S. iGaming expansion.
Stake Secures Five-Year Danish License
Crypto gambling giant Stake launched in Denmark with a full five-year license, setting up HQ at Parken Stadium starting March 1. A crypto-native operator clearing Denmarks compliance bar is a proof point that will echo through every European licensing conversation this year.
Polymarket Poaches Fanatics Exec for Sports Push
Polymarket hired Ari Borod, formerly head of business development at Fanatics, as President of Sports Business Development. Talent flowing from licensed incumbents to crypto platforms tells you everything about where the smart money thinks this industry is heading.
Michigan Eyes Illinois-Style Tax Hikes on iGaming
Governor Whitmer is pushing progressive tax hikes on both sports betting and iGaming revenue. The Illinois playbook is spreading. Higher taxes compress margins, cut marketing budgets, and reduce player promotions.
Connecticut Sets First Prediction Market Safer Gaming Rules
Connecticut became the first state to mandate age restrictions, safer gaming tools, and responsible gambling measures for prediction market platforms. Instead of banning prediction markets, Connecticut is regulating them — a far better outcome for the sector.
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— Elise Moreau