DraftKings has announced the launch of a new cryptocurrency deposit feature in Illinois, Kentucky, New Hampshire, and Vermont.During a Massachusetts Gaming Commission...
New York AG issues consumer warning over prediction markets
As the Super Bowl approaches on February 8, 2026, Letitia James, the Attorney General of New York, has issued a consumer alert to warn players against the financial risks of prediction markets.
AG James stressed that prediction markets offer bets that are disguised as event contracts and operate without the supervision of the New York Gaming Commission, meaning they provide services with no consumer protections in place.
Letitia James said:
“Ahead of the Super Bowl, New Yorkers need to know the significant risks with unregulated prediction markets. It’s crystal clear: so-called prediction markets do not have the same consumer protections as regulated platforms. I urge all New Yorkers to be cautious of these platforms to protect their money.”
The alert pointed out that prediction platforms don’t have measures against problem gambling, predatory ads, or underage participation because they aren’t required to use self-exclusion tools or pass regulatory review. Prediction markets were also linked to overextensions of credit and rising loan defaults.
The prediction market industry also received a separate warning from James, which stated that the operation, advertisement, and promotion of illegal sports betting are in violation of New York gambling laws and can lead to criminal and civil penalties.
The AG’s warning comes at a time when different U.S. states are arguing over the issue of prediction markets being regulated at a state or federal level.
On January 28, 2026, the Virginia House of Delegates voted 94-3 to ban the use of credit cards for online sports betting in the state, sending the bill to the Senate.
...
