Abelson Sports chief betting officer Jeeve Jeyaratnam reflects on the “Wild West” situation involving prediction markets in the US
INTERGAMINGi: What do you make of the evolving situation around prediction markets in the US?
JJ: It’s certainly provided plenty of content for news outlets and billable hours for lawyers! In all seriousness, the situation is reflective of American politics at this time. There is clearly a push by the federal government to muscle in on what was, by decree following PASPA, a state-by-state decision on how to legalise and tax gambling.
Labelling sports-related event contracts as financial products under the CFTC [Commodity Futures Trading Commission] has created what many observers – including the British Gambling Commission, which classifies prediction markets alongside exchange betting – view as a regulatory gap wide enough to invite exploitation. And exploited it has been. Technically astute, market-ready products have moved in at speed, rapidly capitalising on this treatment and, in the process, carving a noticeable dent into the share prices of more traditional sportsbook operators as the narrative of large scale cannibalisation – misplaced, in my view – takes hold.
How long this opportunity remains is likely dependent on who next occupies the Oval Office. There is increasing pressure on the likes of Kalshi to act and stop what appears to be a proliferation of insider trading issues. The CFTC is not preventing markets on war and death and it does appear that those close to the government’s moves have been profiteering in what a group of Democrats are branding “…deeply sick, about turning war into a gambling opportunity.” From multiple states taking legal action against what they feel are non-licensed platforms operating on their turf, to counter-suing by CFTC and DOJ [Department of Justice], the whole situation has the feeling of the Wild West about it.
What do you make of the US sports betting landscape in 2026?
There’s no doubt that prediction markets have thrown a spanner into the plans of the largest betting operators in the US, but to their credit a few have pivoted quickly and launched PM products of their own; albeit products that are less controversial and less likely to cause licensing issues where their sportsbooks already exist.
There’s a huge opportunity ahead for US sportsbooks this summer, with the World Cup promising to act as a catalyst to summer revenues. This is a huge chance for sportsbooks to show why they are the right place for punter’s cash. The standard sportsbook can offer so much more to punters than PMs, and with a tight, user-friendly sportsbook app, operators will be hoping to cash in on the national fervour that the biggest-ever World Cup will bring.
There’s a school of thought that suggests the states that haven’t legalised sports betting might be pushed to put regulation in place to stop prediction markets taking all the money out of the state. In theory this seems sensible, but the nature of policy review and approval in the US means any state-level law changes will still be incredibly hard to get passed.
How do you reflect on Abelson Sports’ rebrand a year on, and how is business going in North America?
It was the right move to align our name more closely with the core business, but I’m not going to pretend that a rebrand was essential or has made a huge difference to our B2B business. We are now industry veterans, and after years of hard work and diligence from our capable and conscientious team we have forged a reputation that we are proud of. The “Abelson” element of the name is of course key and we ensured that was retained during the rebrand.
North America, despite its regulatory challenges, has been an area of extreme growth. Timing wise, with the World Cup being co-hosted there, it has been a perfect time to engage operators to look at improving their soccer products. Of course, this also means that our counterparts, the US sports-based props providers, have also started to develop soccer props products. We’re confident that with our experience, scope and market penetration, we can still prove to be the best option for North American operators.
How can Alberta ensure it follows a similar regulatory path to Ontario in Canada?
Alberta’s long-awaited shift to regulation will do well to borrow some core principles from what has been regarded as a successful Ontario launch. Alberta has chosen to almost replicate Ontario’s tax stance – though the blended rate, after taking out three per cent for First Nations and social responsibility – will come in a little higher overall. The dual-track institutional architecture is also being copied and that will frame these two key provinces as a template for future regulating territories. Hopefully, for operators working in the regulated space, the adoption of regulation by these two key provinces will see added pressure on some of the others to stop leakage offshore and to face up to responsible gaming challenges directly.
With the World Cup fast approaching, what is on the final checklist for US and Canadian sports betting operators?
There will be a number of operators still scrambling to beef up their soccer offering even at this late stage. At this point, from a supplier point of view, distribution is key. If you can bypass a big technical integration then you still have a chance of adding clients before the World Cup. Aside from a full makeover of your soccer product, operators should be focused on how they can retain new customers that they will invariably attract.
For me, this is a key factor in how the World Cup will be viewed six months after the final. Operators spend so much time and money on acquisition, and while a World Cup can really help bring those new users in, it is vitally important that there is a retention plan in place to maximise the opportunity a global sporting event can bring.
