FanDuel and DraftKings stunned the gaming world by cutting ties with the American Gaming Association, signaling a dramatic pivot toward federally regulated prediction markets. This move pits the state‑by‑state model that built their empires against a new legal strategy that frames wagers as tradable financial instruments under the purview of the CFTC.

In this episode, Lex and Bianca unpack the corporate divorce, the strategic alliances with CME and RailBird, and the existential threat this poses to state‑regulated casinos and lotteries. What emerges is less a fight for market share than a jurisdictional war: traditional state oversight versus an aggressive federal framework. One possible outcome is that sports gambling may be redefined. Another that we will cover in a future episode: Greed has overplayed its hand and may lead to the demise of an entire industry.

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