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Prediction markets have officially landed in the middle of Connecticut’s gaming landscape, and the Mohegan Tribal Gaming Authority is making its stance clear. During a recent quarterly earnings call, company executives voiced strong support for state officials who are challenging platforms they believe infringe on tribal gaming exclusivity.
From Mohegan’s perspective, this is not a gray-area tech debate. Leadership views sports-based event contracts as gambling products, plain and simple. In a state where two tribes hold exclusive rights to offer gaming under a long-standing compact, that distinction carries serious weight.
Cease-and-desist letters mark a turning point
The situation escalated in December when the Connecticut Department of Consumer Protection Gaming Division issued cease-and-desist letters to KalshiEX LLC, Robinhood Derivatives LLC, and Crypto.com. Regulators directed the companies to halt offerings that the state classified as illegal sports wagering.
Mohegan Chief Financial Officer Ari Glazer addressed the issue head-on during the earnings discussion. He reiterated that Connecticut’s two federally recognized tribes maintain exclusivity over all forms of gaming in the state and said the company is actively coordinating with regulators and government leaders to protect that framework. A recent hearing underscored that the dispute has moved into active legal territory.
In a written statement, tribal officials emphasized their partnership with Connecticut. They pointed to billions of dollars generated under their compact and stressed the importance of maintaining a stable, regulated market focused on consumer protection and integrity.
Proposed penalties for market violations
Beyond enforcement actions, lawmakers are considering additional guardrails. Proposed legislation would restrict minors’ access to prediction market platforms and impose civil penalties of up to $50,000 per violation.
The proposal also calls for formal research into how these platforms might affect problem gambling rates and revenue for licensed operators. That approach suggests policymakers are looking not only at legality, but also at broader economic and social implications.
Accounting gains drive Mohegan’s income
Regulatory headlines aside, Mohegan’s financial report offered a more complicated story. The company posted net income of $108.5 million for the quarter ending Dec. 31, a sharp turnaround from the prior year’s net loss. Much of that swing stemmed from a $102 million non-cash accounting gain on discontinued operations in South Korea, following Bain Capital’s assumption of control of the Mohegan INSPIRE project.
Strip out that one-time gain, and core performance appears relatively steady. According to the original report by World Casino News, domestic resort revenue fell 3.9% to $300 million, reflecting fewer arena events and tough year-over-year comparisons that benefited from unusually strong table hold in prior periods. Operating cash flow remained limited.
Mohegan Digital stood out as a bright spot. Revenue climbed 35.9% to $72.2 million, driven largely by growth in Connecticut, where gross gaming revenue rose 33.5%. Adjusted EBITDAR increased 2.4% to $95.3 million on flat net revenues. Adjusted EBITDA declined slightly year over year due to prior one-time benefits, though it would have risen after normalizing for those factors.
National tribal leaders signal alarm
Concerns extend beyond one company. The Indian Gaming Association has also flagged prediction markets as a policy issue with national implications. Chairman David Bean recently told tribal leaders that gaming remains one of the most successful economic development tools for Native communities.
Bean warned that prediction market products could evolve into casino-style offerings if regulators do not act. In his view, tribes and states, as sovereign governments, should determine gambling policy rather than outside operators leveraging new technology.
