We are aware that past few days have been slow, but that’s expected after a thrilling edition of world cup, with more than 100 matches. But hey, the real question isn't what happens during the World Cup it's what happens after.
We at PRED have doubled down our efforts to make your experience for upcoming sports season the best one yet, while we get back to PRED lets see how does the week looks like in prediction market space
The single most consequential story of the week and arguably the year. New York Attorney General Letitia James sued Kalshi on July 31, seeking a minimum of $36 billion and accusing the prediction market company of running an unlicensed gambling operation that lets New Yorkers as young as 18 bet on the outcome of sporting events.
The details: the lawsuit seeks an order stopping Kalshi from operating in New York, along with restitution, forfeiture of allegedly illegal gains, and fines equal to three times those gains. Governor Kathy Hochul co-announced the case. Kalshi and Polymarket now face at least 20 lawsuits from state regulators, tribes, and individuals.
A Kalshi spokesperson called the lawsuit "political theater." The CFTC fired back the same day: CFTC Chairman Michael Selig filed a separate federal lawsuit to block New York's action, arguing the agency has exclusive jurisdiction over contracts traded on CFTC-licensed exchanges. The federal appeals court rejected Kalshi's request to pause an earlier court ruling, allowing New York to proceed. Massachusetts filed a parallel suit the same day. The core constitutional question does federal CFTC licensing supersede state gambling laws? is now headed to the Supreme Court.
One of the most significant corporate earnings data points in the industry's history. Robinhood posted record Q2 revenues of $1.31 billion, up 32% year-over-year.
Crypto revenue fell 38% year-over-year to $100 million, while event contracts surged over 10x to $156 million, becoming the company's fastest-growing revenue line. Rothera handled 2.1 billion contracts in its first month of operation and accounted for $17 million of prediction market revenue.
CEO Vlad Tenev said on Bloomberg TV: "Prediction markets have been growing consistently since March. We expect it to continue to be strong." The symbolic significance: prediction markets just overtook crypto at the world's largest retail trading app. That's not a niche product anymore.
Average daily volume across US prediction markets reached $1.91 billion in July, putting the sector on the cusp of the $2 billion threshold, according to Jefferies.