White House betting controversy, Kalshi legal fight, 44 AGs oppose CFTC proposal, today in prediction market news LIVE

Minnesota Governor Tim Walz has decided that if you're paid by the state, your inside knowledge shouldn't double as a side hustle. A new executive order bars state employees from using confidential government information to trade on prediction markets, whether they're betting on elections, court cases or government decisions. 

Trump and companies like Kalshi are more interested in lining their pockets than protecting public trust and keeping people safe.

Regardless of their grift, I’m taking action to reinforce the strong ethical standards we have in Minnesota. https://t.co/CbXrQwHR1B

— Governor Tim Walz (@GovTimWalz) July 28, 2026

Kalshi asked the court for an emergency lifeline. The court politely declined. A federal judge has denied the company's request for an injunction pending appeal, ruling that Kalshi failed to meet the even higher legal standard required after already losing its bid for a preliminary injunction. In essence, the court's message was: "We've heard these arguments before." 

Meanwhile, New York has filed its opposition in the Second Circuit, urging the appeals court to reach the same conclusion. 

New York has filed its Second Circuit opposition to Kalshi's emergency motion for an injunction pending appeal, leans on Sixth Circuit's recent denial of the same relief sought by Kalshi, says "this Court should do the same." We should find out within the next 48 hours. 🧵 pic.twitter.com/EDJrwzksZM

— Daniel Wallach (@WALLACHLEGAL) July 28, 2026

The "please stop calling it not-gambling" coalition has gained another member. The National Council of Legislators from Gaming States (NCLGS) has unanimously approved a resolution urging Congress and federal regulators to preserve state and tribal authority over prediction markets, arguing that sports event contracts shouldn't sidestep the rules governing licensed gambling. 

THE RESOLUTION OF NCLGS
A Resolution Opposing the Expansion of Unregulated Prediction Markets & Urging Federal & State Action to Protect Consumers & Regulated Gaming Markets. Our Executive Committee unanimously approved this.
Press Release: https://t.co/r9mnAtqCLc#NCLGS pic.twitter.com/2OsJW4shCy

— NCLGS (@NCLGS) July 27, 2026

The comment period on the CFTC's proposed prediction market rules is ending exactly as you'd expect: with 44 state attorneys general arriving fashionably late carrying one very large objection. In a joint letter, the bipartisan coalition argues the proposal would hand federally regulated prediction markets an unfair advantage over state-regulated sportsbooks while undermining long-standing state authority over gambling. The message is less "we have some suggested edits" and more "absolutely not." 

Forty-four state attorneys general challenge CFTC sports prediction markets rule proposal - https://t.co/iVEUH9YFp1 @RWW

— Suswati Basu (@suswatibasu) July 29, 2026

The White House teleprompter operator accused of using advance knowledge of Donald Trump's speeches to place winning bets on Kalshi is now reportedly out of a job, according to a White House official. It’s a reminder that while prediction markets are designed to price information, they're not supposed to reward people who already know the answer.