Thread III / The Fix
The Casino Is
the State Now
Four pillars. Every connection between the industry and the people who are supposed to regulate it. Every claim sourced.
White House
The Administration Has a Stake in the Game
Donald Trump Jr. is a paid advisor to Kalshi and an investor in Polymarket, the two largest prediction markets in the United States, where users can bet on elections, wars, and assassinations. His involvement with both companies was documented before the 2026 elections and has not been unwound.
Trump Media and Technology Group announced its own prediction market platform, Truth Predict, in late 2025, in partnership with Crypto.com Derivatives North America. As of May 14, 2026, Trump Media scaled back the platform to a promotional collaboration with Crypto.com's OG.com. The initial announcement established the administration's clear commercial interest in the prediction market space.
The significance is structural. The same administration that would oversee any federal regulation of prediction markets has family members holding financial positions in the two dominant platforms in that market. There is no federal law currently requiring divestiture or disclosure of those positions in this context.
Sources: CNBC, "Kalshi, Polymarket lobby as insider trading, betting eyed by Congress," April 15, 2026; CNN Politics, "With casino empire gone, Trump family bets on prediction markets," March 22, 2026; Santa Clara University Markkula Center for Applied Ethics, "Leading Prediction Firms Share a Commonality: Donald Trump Jr.," January 15, 2026; Blockworks, October 28, 2025; Sportsbook Review, May 14, 2026.
Congress
The Senate Had to Ban Itself
On April 22, 2026, Kalshi announced it had suspended and fined one US Senate candidate and two House of Representatives candidates for trading on prediction markets tied to their own campaigns. Kalshi called it political insider trading.
Eight days later, on April 30, 2026, the US Senate unanimously passed a resolution by voice vote banning senators and their staff from trading on prediction markets, effective immediately. The resolution was sponsored by Sen. Bernie Moreno (R-OH), with a staff-coverage amendment by Sen. Alex Padilla (D-CA).
The sequence matters. It was not the existence of prediction markets or their documented harms to ordinary gamblers that prompted the Senate to act. It was the discovery that their own members and candidates were using the platforms in ways that raised insider-trading concerns. Congress moved fast to protect its own members. The question for this film is what that sequence reveals about the pace and motivation of regulatory attention in this space.
The BETS OFF Act, introduced in March 2026 by Sen. Chris Murphy and Rep. Greg Casar, would prohibit wagering on government actions, terrorism, war, assassination, and events where individuals know or control the outcome. The SAFE Bet Act, reintroduced in March 2025 by Rep. Paul Tonko and Sen. Richard Blumenthal, would establish federal minimum standards including bans on advertising during live events and AI-targeted microbets.
Sources: CNBC, April 30, 2026; PBS News, May 1, 2026; NBC News, May 1, 2026; Sen. Chris Murphy press release, March 17, 2026; Casino.org, March 12, 2025.
The Leagues
The NFL Owns a Piece of the Bet
Genius Sports is the data company at the infrastructure level of legal US sports betting. It holds the exclusive license to distribute official NFL data to sportsbooks. Every live microbet placed on an NFL game, on FanDuel, DraftKings, BetMGM, or any of the other major platforms, runs through Genius Sports data. Genius Sports earns a commission on every one of those bets.
The NFL was Genius Sports' largest shareholder from 2021 to 2025. In June 2025, the NFL added $94 million in Genius Sports stock, becoming the largest shareholder. As of early 2026, after some share adjustments, the NFL remains the second-largest shareholder. In 2025, Genius Sports' revenue from live microbetting commissions alone exceeded $125 million.
The PHAI lawsuit names the NFL as a defendant alongside FanDuel, DraftKings, and Genius Sports. The complaint argues that the NFL's ownership position and data licensing relationship creates direct financial incentive for the league to sustain and grow the very betting activity the lawsuit alleges is causing addiction-related harm.
Every other major American sports league sold its data to the books. The financial architecture is the same across the NFL, NBA, MLB, and NHL. The difference is that the NFL's equity stake in Genius Sports makes the relationship explicit in a way that other leagues' licensing arrangements do not.
Sources: PHAI press release, March 24, 2026; Sportico, "NFL Adds $94M in Genius Sports Stock, Becomes the Largest Shareholder," June 11, 2025; Ainvest, April 3, 2026; Philadelphia Inquirer, March 30, 2026.
The Military
The First Federal Insider-Trading Prosecution Involving a Prediction Market
On April 23, 2026, US Army Special Forces Master Sergeant Gannon Ken Van Dyke, age 38, stationed at Fort Bragg, North Carolina, was indicted in the Southern District of New York.
Federal prosecutors allege that Van Dyke used classified information about the US military operation to capture Venezuelan President Nicolas Maduro to place winning bets on Polymarket. The operation was named Operation Absolute Resolve and resulted in Maduro's apprehension in early January 2026.
Van Dyke allegedly made 13 bets on Polymarket between December 27, 2025 and January 2, 2026, the last placed hours before the overnight capture. He wagered approximately $33,000 and won nearly $410,000 in profits, which prosecutors say he then transferred to a foreign cryptocurrency vault.
The case marks the first time the Commodity Futures Trading Commission has used what prosecutors call the "Eddie Murphy Rule" to bring charges based on the misuse of government information in a prediction market context. It is the first federal insider-trading prosecution involving a prediction market.
The Van Dyke case is not an isolated misuse. It is the first one that was caught and prosecuted. Prediction markets allow users to bet on classified operations, assassinations, and war outcomes. The question of who else with classified access has done what Van Dyke allegedly did remains open.
Sources: CNN Politics, "US special forces soldier arrested after allegedly winning $400,000 on Maduro raid," April 23, 2026; CNBC, April 23, 2026; NBC News, April 23, 2026; Axios, "U.S. special forces soldier arrested over Polymarket bets on Maduro raid," April 23, 2026. Federal indictment unsealed in SDNY.