Arizona warns approved operators against the offer of prediction markets


The Arizona Department of Gaming (ADG) has sent communications to approved sports books warning them that the offer of prediction markets outside the Arizona could endanger their license.
In the letter signed by Adg Jackie Johnson’s director, operators have been informed that the supply of event contracts or even the partnership with such platforms to allow the activity “outside the framework of state games” could lead to a serious application.
The ADG took this measure to advise operators of potential violations after letters to stop and abstain were issued to Kalshi, Robinhood, and prediction market suppliers, and Crypto.com
As initially reported by Dustin GoukerOffering prediction markets in the United States would not be considered favorably in the state of the Grand Canyon. It is the suggestion of the ADG directive, acting almost as a preventive strike against operators.
It happens shortly after the factory (a fantastic sports operator registered and registered in Arizona) opened its doors with sporting contracts in 16 American states as “technology supplier” for crypto.com
Above all, Arizona is not one of the 16 jurisdictions.
Beyond that, no other supplier of regulated sports books or fantastic sports operator has launched a prediction market offer in the State, which is one of the largest sectors regulated by the State in all the United States
Fanduel has concluded a partnership with CME Group for prediction services, but the arrangement will only apply to financial markets.
News: Ohio Regulator warns the sportsbooks of the prediction market offer
The letter from Ohio Casino Control Commission indicates that the launch of sporting event contracts or to work with prediction markets like Kalshi could put a Sportbook license in Jeopardy
– Dustin Gouker (@dustingouker) August 25, 2025
Duty to maintain the integrity of the game in Arizona
The development is interesting, the Arizona apparently following the example of the Ohio Casino Control Commission, which warned of providing contracts of sporting events without the approval of the licenses, but this new action goes further.
“Even if the licensee is not associated directly with the offer or sale of event contracts to people in Arizona, his relationship with other people or entities and his conduct in other jurisdictions remains in question,” said Johnson in the letter.
He continued to emphasize that “we all have the responsibility to maintain the integrity of the game in Arizona.
“Neither the citizens of this state nor your game operations are, in the long term, served by an illegal, without license and / or unregulated game.”
The Director of the ADG is on the file for criticizing the Commodity Futures Trading Commission (CFTC) for having failed to take adequate measures against the prediction markets to offer contracts for sporting events.
Image credit: Florianschneider / Unsplash
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