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The Gambling Wire: Major Sports Leagues Seek Lifetime Betting Bans for Harassment

By jili tutorial · September 17, 2026

The Gambling Wire: Major Sports Leagues Seek Lifetime Betting Bans for Harassment

A wave of regulatory, legislative, and legal battles is reshaping the landscape of sports betting and prediction markets across the United States. From lifetime bans for harassing bettors to court fights over event contracts, federal and state authorities are grappling with how to govern a rapidly expanding industry. This guide breaks down the key developments, their implications, and the broader context for bettors, operators, and regulators.

The Big Story: Major Sports Leagues Demand Lifetime Betting Bans for Harassment

In a coordinated move on September 15, the NFL, MLB, MLS, NBA, and NHL—together with their respective players’ associations—sent a joint letter to gambling regulators in 35 states and Washington, D.C. The leagues warned of an “escalating threat” of betting-related harassment and violent threats directed at athletes, coaches, officials, and their families.

“Too often, individuals who lose sports bets direct threatening and harassing messages toward players, coaches, and their families via social media and in-person interactions,” the groups wrote.

This problem has intensified with the proliferation of online sports betting. Losing bettors—especially those who wagered large sums or accumulated parlays—sometimes lash out publicly. High-profile cases have included abusive social media posts, doxxing, and even physical intimidation attempts. The leagues argue that without uniform, enforceable rules, player safety remains at risk.

The Three Regulatory Actions Proposed

The letter outlines a clear framework for regulators:

  1. Mandatory lifetime bans – Any person verified to have harassed or threatened athletes, coaches, officials, team personnel, or their families would be permanently banned from all legal sports betting.
  2. Cross-operator reporting system – Leagues, teams, and players would have a standardized way to report verified threats to regulators and law enforcement, and the information would be shared across operators.
  3. Sportsbook monitoring and flagging – Sportsbooks would be required to actively monitor accounts, flag abusive behavior, and ban users who engage in such conduct.

The leagues emphasized: “The safety and well-being of players, coaches, officials and their families must always come before a wager.”

Existing Precedents and Operator Actions

The letter points to Ohio, West Virginia, Louisiana, and Wyoming as states that have already implemented anti-harassment provisions. Additionally, some operators have taken voluntary steps. BetMGM, for example, has introduced policies to ban bettors who harass athletes. However, the leagues seek a uniform, regulatory mandate across all states to close loopholes and ensure consistency.

What This Means for Bettors

For everyday sports bettors, this proposal signals that abusive behavior will have severe consequences. A single verified threat could result in a lifetime ban from placing bets in any legal jurisdiction—potentially even across multiple states. This goes beyond existing self-exclusion programs, which are voluntary. Here, the ban would be enforced by regulators, not chosen by the bettor.

Prediction Market Lawsuits and Regulatory Crackdowns Spread Across States

Connecticut: Underdog Sues, Other Firms Negotiate

Connecticut’s Department of Consumer Protection issued cease-and-desist orders on September 10 against nine prediction-market companies. One of the targets, Underdog Predict, responded with a federal lawsuit filed on September 15 in the U.S. District Court for the District of Connecticut.

The lawsuit names Attorney General William Tong, Department of Consumer Protection Commissioner Bryan Cafferelli, and Gaming Division Director Christopher Gilman as defendants. Underdog seeks declaratory and injunctive relief, arguing that Connecticut is “unlawfully exercising jurisdiction over, regulating, or terminating Underdog’s offering of lawful derivatives contracts on federally regulated markets.”

Other companies targeted—including Novig, ProphetX, Gemini, and Webull—have taken a different approach. According to CT Insider, they have responded to the Department of Consumer Protection and are in discussions about next steps. Cafferelli noted: “We have received a handful of responses to our actions last week to enforce Connecticut gaming and unfair trade practices laws against prediction markets. We are working with those who have responded on next steps.”

Meanwhile, Coinbase and Kalshi are already in litigation with Connecticut over prediction markets. And Robinhood has moved to intervene in the CFTC lawsuit against the state.

Key takeaway: The Connecticut crackdown highlights the growing tension between state gaming regulators and federally regulated prediction-market operators. Underdog’s lawsuit could set a precedent for how federal commodities law interacts with state gambling prohibitions.

Iowa: Kalshi Appeals to Eighth Circuit

Kalshi, a major prediction-market exchange, is taking its fight with Iowa to the U.S. Court of Appeals for the Eighth Circuit. On September 15, the exchange filed a notice of interlocutory appeal after U.S. District Judge Stephen Locher denied its motion for a preliminary injunction on September 8.

Kalshi has experienced mixed results in similar cases across the country:

The Iowa case centers on whether event contracts (such as bets on election outcomes or sports results) constitute illegal gambling under state law or are permissible derivatives traded on federally regulated exchanges.

Texas: Lawmakers Debate Event Contracts as Gambling

Texas lawmakers held a hearing on prediction markets on Tuesday, following a directive from Lt. Gov. Dan Patrick to examine whether federal law is being used to circumvent the state’s gambling prohibitions. The Senate Committee on State Affairs heard competing arguments:

The debate is especially significant in Texas, where traditional sports betting remains illegal. A ruling in favor of either side could influence how other states with strict gambling laws approach prediction markets.

Tribal Groups Press CFTC Over Prediction Markets

On September 15, CFTC Chairman Michael Selig met with leaders of 17 organizations representing Tribal nations in a private roundtable in Washington, D.C. The meeting, moderated by Oklahoma Indian Gaming Association (OIGA) Chairman Matthew Morgan, covered recent CFTC rulemaking, sports and political event contracts, prediction-market advertising on Tribal lands, and agricultural markets.

Tribal representatives expressed strong opposition to the CFTC’s approach. Matthew Morgan stated: “We view the CFTC’s actions as undermining the Indian Gaming Regulatory Act, as allowing illegal Class III gaming to infringe upon the sovereignty of Tribal nations, and as undermining revenue streams that are critical to Tribal government programs and services.”

The OIGA also emphasized that this roundtable does not constitute the formal “government-to-government” consultation that tribes are seeking. The CFTC has taken the position that such consultation is not required because federally regulated prediction markets are not gambling. However, tribal leaders expect the CFTC’s proposed rulemaking to result in additional litigation.

Context: Tribal gaming is a major economic driver for many Native American communities. If prediction markets are classified as gambling and allowed to operate outside tribal compacts, they could erode the revenue that funds education, healthcare, and infrastructure on reservations.

Gambling-Loss Tax Fix Returns to Congress

A legislative effort to reverse the new 90% cap on federal gambling-loss deductions is back before lawmakers. On Wednesday, the House Ways and Means Committee is considering a tax package that would restore the ability to deduct 100% of wagering losses against gambling winnings.

The provision is based on the bipartisan FULL HOUSE Act, introduced by Reps. Max Miller (R-OH) and Steven Horsford (D-NV). It would apply retroactively to the 2026 tax year.

Why the 90% cap matters: Currently, a bettor with $100,000 in winnings and $100,000 in losses can only deduct $90,000. That means they would owe taxes on $10,000 of net gambling income—even though they broke even overall. The FULL HOUSE Act would eliminate this tax penalty.

What’s next: The proposal still needs to advance through Congress, including Senate approval, before becoming law. For now, bettors should continue to keep careful records and consult a tax professional.

New Gambling Bills Advance in New Jersey and Illinois

New Jersey: A5210 Expands Exclusion System

In New Jersey, bill A5210 would expand the state’s gambling exclusion system. Key provisions include:

This bill represents a more proactive approach to responsible gambling, giving third parties a pathway to intervene.

Illinois: HB5814 Targets Prediction-Market Tax and DFS Framework

Illinois Rep. Travis Weaver has introduced HB5814, which combines two separate efforts:

  1. Eliminating the prediction-market tax – The bill would repeal Illinois’ exchange-wager transaction tax, currently set at 1.75% on the first five million exchange wagers per platform per fiscal year, and 3.5% for each subsequent wager.
  2. Rolling back the daily fantasy sports (DFS) framework – HB5814 would also repeal the DFS licensing and tax structure, including provisions that state qualifying fantasy contests are not gambling and protect participants from gambling-related convictions.

This bill goes further than Weaver’s previously filed HB5811. If passed, it would mark a significant shift in Illinois’ approach to both prediction markets and DFS.

Industry Moves: Polymarket, FanDuel, and Amazon

Polymarket Adds VP of Operations

Polymarket, a leading prediction-market platform, continues to build its executive team. After hiring Warren Jenson as CFO last week, CEO Shayne Coplan announced on Tuesday that Collin McKinney Hill has joined as vice president of operations. Hill previously worked at DoorDash and Bridgewater Associates. Coplan said Hill will work across Polymarket’s operations as the company expands.

FanDuel and Prime Video Expand NFL Integration

FanDuel and Amazon are deepening their sports betting integration, bringing it to Thursday Night Football as Prime Video begins its 2026 NFL season. The companies announced that FanDuel customers will be able to access live betting odds, place wagers directly through the Prime Video interface, and enjoy seamless integration during TNF broadcasts. This follows a similar partnership for other NFL games and reflects the growing convergence of streaming and sports betting.

Conclusion: A Pivotal Moment for Gambling Regulation

The simultaneous push for lifetime betting bans, court battles over prediction markets, tribal opposition to CFTC rulemaking, and legislative tax and licensing fixes underscore a highly dynamic environment. Bettors should stay informed about:

As the industry evolves, regulators, leagues, and operators are wrestling with how to balance innovation, consumer protection, and the integrity of sport.