FTC Opens Review of Sportsbook Advertising as Kalshi Tribal Agreement Meets Leadership Pushback

The Federal Trade Commission is conducting a preliminary review of online sportsbooks over allegations of deceptive or misleading advertising, according to reporting by The Washington Sun. The evaluation involves both political appointees and career staff. Prediction markets are not expected to fall within its scope.

DraftKings told The Washington Sun it had not received a civil investigative demand from the FTC. FanDuel and the agency itself declined to comment. Joe Maloney, president of the Sports Betting Alliance, pointed to the Responsible Online Gaming Association’s marketing standards in defense of industry practices.

The reported probe lands amid existing pressures on the two leading operators. A New York Times investigation last month alleged that DraftKings used AI to identify customers likely to lose more through promotions. That coverage triggered regulatory examinations in Massachusetts, Michigan, and Maine, plus a class-action lawsuit. FanDuel has faced federal lawmakers’ scrutiny for personalized VIP messaging, including a Bryce Harper video sent to a customer with a gambling addiction who had lost $1.5 million.

Kalshi Tribal Partnership Runs Into Factional Dispute

Kalshi partnered with four Native American tribes to launch prediction market apps, competing statements have surfaced over the Alabama-Quassarte Tribal Town agreement. CNN updated its reporting to tie the app to one faction of the tribe. An opposing faction argued that prediction markets amount to illegal gambling and threaten tribal gaming revenue. CNN reporter Marshall Cohen tied the matter to a longstanding leadership dispute.

Indian Gaming Association conference chair Victor Rocha shared a statement denying that the tribal administration, governing committee, or its representatives had entered any agreement with Kalshi. The statement identified Samuel Marshall Jr. as chief. The denial conflicts with an earlier account given to Gambling Insider by a tribal spokesperson, who described a transaction-based revenue-sharing arrangement and plans to launch PokkeTrades in November.

“Through our agreement with Kalshi, we anticipate earning a share of transaction revenue generated through the platform,” the spokesperson told Gambling Insider.

“We recognize that federal regulation does not, by itself, resolve every question about the application of state and tribal gaming laws,” the spokesperson said.

The episode underscores the practical limits of federal clarity when tribal governance itself is contested. Operators and prediction market platforms entering such arrangements face execution risk that no single regulatory approval can remove.

Reporting: Gambling Insider

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