EndGame: Concerns Fading About Prediction Markets, Betting Integrity? Not A Chance

Q: What are prediction markets and why are they concerning for sports betting?

Prediction markets are platforms where individuals can bet on the outcomes of events, and they raise concerns for sports betting due to potential integrity issues and competition.

Q: How is the U.S. sports betting industry evolving in 2026?

The U.S. sports betting industry is experiencing rapid and unpredictable changes, prompting stakeholders to reassess their strategies and concerns.

Q: What did the American Gaming Association report about the gaming industry outlook?

The American Gaming Association's report highlighted that industry executives are particularly worried about the competition from prediction markets.

Q: What are the implications of prediction markets on betting integrity?

Prediction markets could undermine betting integrity by introducing unregulated competition and influencing betting behaviors in unpredictable ways.

InGame

The U.S. sports betting world moves quickly and unpredictably in 2026. In order to properly take stock of it all, we offer InGame’s “EndGame,” an end-of-week compilation of the top storylines, some overlooked items, and all the other news bits from this past week that we found interesting.

If only not for prediction markets …

It should come as no surprise what most troubled industry executives in the latest American Gaming Association Gaming Industry Outlook: prediction market competition.

Despite mostly positive sentiments offered generally about prospects for the gaming industry in the near future, 81% of executives surveyed said they viewed prediction markets “as a very significant threat to the regulated gaming industry,” according to the AGA report.

That concern from four out of five of those surveyed ran counter to an overall positive sentiment about the state of the gaming industry — the highest positive outlook since the third quarter of 2022. The quarterly industry snapshot, based on executives’ responses, found that 46% of them “indicate that federal regulatory concerns are limiting operations, up from 29% in Q3 2025.”

Let’s talk about sports betting integrity

Prediction markets aren’t the primary reason for an upcoming hearing on Capitol Hill related to sports betting (though they will undoubtedly be mentioned). Instead, the Senate Commerce Subcommittee on Consumer Protection, Technology, and Data Privacy is convening at 10 a.m. on May 20 to focus on sports betting integrity.

“The hearing will examine the rapid expansion of sports betting in the United States and its growing impact on the integrity of games,” according to the announcement of the hearing from subcommittee chair Sen. Marsha Blackburn of Tennessee.

Among those scheduled to testify are American Gaming Association President Bill Miller, Tennessee Sports Wagering Council Executive Director Mary Beth Thomas, Integrity Compliance CEO Scott Sadin, and Patrick McHenry, senior advisor to the Coalition for Prediction Markets.

Blackburn referenced the growth in cases related to athletic performance manipulation and sharing of insider information, which have resulted in criminal scandals tied to the NBA, NCAA, MLB, and elsewhere. “This hearing will examine how we strengthen oversight, protect the credibility of competition, and address the growing exposure of young people and children to betting platforms,” Blackburn said.

Speaking of NBA betting scandals …

Through 11 games, ex-NBA player Jontay Porter is averaging 25.7 points, 19.6 rebounds and 8.1 assists for the Seattle Super Hawks of the USBL.

Porter is awaiting sentencing after pleading guilty for his role in an alleged gambling scheme centered on bets placed on his…

— David Payne Purdum (@DavidPurdum) May 4, 2026

The big mystery with Massachusetts books

Massachusetts regulators are dumbfounded that sports betting operators continue to post markets on in-state college sports teams despite the state’s ban against it (except during tournaments). Massachusetts Gaming Commission staff revealed at a meeting Thursday that Caesars Sportsbook took bets on a Feb. 13 Northeastern University basketball game, though the bets were voided when the error was caught before tipoff.

“It’s kind of a mystery,” Commissioner Paul Brodeur said of the incident, considering prior such violations have occurred among other licensed sportsbooks. “It’s kind of crazy that these things keep happening. It seems pretty easy” to prevent.

The Investigations Enforcement Bureau told the commissioners that the mistake happened on Caesars’ trading desk, and the company deemed it human error. The game was entered onto the Caesars menu twice — once with the team labeled as Northeastern Huskies and once just as Northeastern.

Since sports betting’s launch in the state, there have been 28 “catalog noncompliance” enforcement actions taken, many for allowing betting on local college teams. In the latest case, the commission referred the incident back to the Investigations Enforcement Bureau to recommend a penalty. Commissioner Nakisha Skinner suggested holding a special session for licensed operators to explain their processes in trying to avoid such occurrences.

Separately, the commission granted extensions to five operators to come into compliance with a new rule that bans the “indirect use of credit cards” to fund wagering accounts, such as using gift cards purchased with a credit card.

— Jill R. Dorson

Odds and ends

Carsten Koerl, the CEO of Sportradar Group AG, has increased his ownership in the sports data company to 2,278,272 shares as a result of a recent 254,100-share purchase, according to an SEC filing reported by GuruFocus News. The site said it continues “a trend of insider buying” at the company.
Though he’s reported to be currently undergoing treatment for gambling addiction, Texas Tech quarterback Brendan Sorsby has retained an attorney to seek to regain his college eligibility, ESPN reports. Sorsby, who is said to be under investigation for allegedly violating NCAA rules prohibiting betting by student-athletes, has hired Jeffrey Kessler, an attorney who has participated in past legal actions against the NCAA.
Count former NBA executive Dave Checketts among those wary of the increasingly close ties between professional sports leagues and the sportsbook industry. “I’m not sure that’s a good thing, this coziness that we’ve established,” Checketts said on a Front Office Sports podcast. He noted how sensitive the NBA was about gambling issues back when he was president of the Utaz Jazz and New York Knicks in the 1980s and ’90s.