Today in prediction market news, we’re following the biggest stories as they develop, including Kalshi’s loss in its bid for a preliminary injunction in New York, Citadel Sports Group’s reported push into the prediction markets industry, Prospect Markets’ U.S. launch through a Crypto.com-backed partnership, growing state-level battles over prediction market regulation and taxation, and new analyst research highlighting the sector’s record momentum in June. Follow along for live updates on prediction markets, regulation, sports event trading, crypto, and the companies driving the industry’s next phase.
New Jersey isn't done taxing prediction markets
Assembly Speaker Craig Coughlin says the proposal to impose a 9% surtax on prediction market income is expected to return when lawmakers reconvene in the fall after missing the summer deadline. Translation: this story has been delayed, not canceled. As more states wrestle with how to regulate—and monetize—prediction markets, the Garden State appears determined to make sure the industry contributes a little something extra to the state coffers.
Arizona takes its prediction market fight to appeal
Arizona has officially taken its prediction market battle to the Ninth Circuit. A newly filed notice confirms the state is appealing the preliminary injunction decision, setting the stage for another round in one of the industry's biggest legal fights. The paperwork mostly lays out deadlines for briefs and mediation, so don't expect fireworks just yet—but the appeal ensures this dispute isn't heading to the archives anytime soon.
Prospect Markets sets its sights on America
Just when you thought the prediction market land grab couldn't get any busier, another player has entered the chat. Prospect Markets says it plans to launch in the U.S. through a non-binding partnership with Crypto.com-backed OG Broker, giving it access to CFTC-regulated infrastructure if all the pieces fall into place. The company is targeting a Q3 launch and has its eyes on sports event contracts, because apparently every sports moment now deserves its own market. It's still early days—the agreement isn't final—but the queue of companies hoping to grab a slice of America's prediction market boom just got a little longer.
"Partnering with OG Broker is the moment Prospect goes from vision to reality in the US. Our mission is to make every sports moment tradable, and this gives us the infrastructure to prove it at the scale the American market demands." - Johnny Chen, Founder and CEO, Prospect Markets
"We are excited to partner with Prospect Markets as they look to enter the growing US prediction market landscape. This partnership underscores our commitment to expanding a compliant digital asset and derivatives ecosystem that offers U.S. participants unparalleled trust and transparency." - Steve Humenik, Chief Legal Officer, OG and EVP and Global Head of Legal for Prediction and Capital Markets of Crypto.com.
Citadel Sports Group makes its prediction market play
Here's a name you don't usually associate with prediction markets—at least not yet. Citadel Sports Group says it's spent the past three months laying the groundwork to enter the space, touting more than $16 million in trading volume and over $1 million in profit on its public Kalshi profile. The firm says it's built tools for sports traders and market originators and is now actively recruiting partners to help scale its ambitions. In other words: the "prediction markets are just a niche" crowd may want to update their talking points. The talent grab appears to be officially underway.
We are excited about what we've built in a short period of time and are excited for what's to come. DM's are open and we hope to hear from you.
— Citadel Sports Group (@CitadelSportsLV) July 8, 2026
Selig draws a line between markets and casinos
There are fundamental differences between prediction markets and casinos that make the former subject to the @CFTC's regulatory remit and not that of the states.
— Mike Selig (@ChairmanSelig) July 7, 2026
Watch me break things down on the @glennbeck program 👇 pic.twitter.com/MURHQLO21b
Judge hands Kalshi a New York setback
Well, that’s one way to start the day. Kalshi’s bid to hit the pause button on New York’s enforcement efforts has been rejected after a federal judge denied the company’s request for a preliminary injunction. It’s hardly game over — the underlying legal fight is still very much alive — but it’s a reminder that prediction markets continue to win some battles while losing others. With appeals brewing elsewhere, new CFTC filings landing, fresh state tax proposals, and heavyweight firms circling the sector, there’s no shortage of plot twists. Grab your coffee; prediction markets have served up another busy news cycle.
Big win for @NewYorkStateAG
— Daniel Wallach (@WALLACHLEGAL) July 8, 2026
Next up:
- AG James will file a civil enforcement action vs. Kalshi in state court, seeking restitution, disgorgement, civil penalties and injunctive relief.
- Kalshi will appeal the PI denial to CA2 and seek an immediate injunction pending appeal. https://t.co/7hKW6b4Pgn
