Howard Glaser, head of government affairs and legislative counsel at Light & Wonder, pitched a new strategy for combating prediction markets. Instead of continuing courtroom battles, Glaser advocated targeting the payment infrastructure that fuels these platforms.
Speaking at the National Council of Legislators from Gaming States, Glaser proposed cutting off prediction market operators from mainstream payment processors. The logic is straightforward. Prediction markets depend on players funding accounts and withdrawing winnings. Restrict access to Visa, Mastercard, PayPal, and bank transfer services, and you starve the business model.
This approach reflects frustration with existing legal tactics. States and gaming operators have filed numerous lawsuits against prediction market platforms over the past year. Courts have issued mixed rulings. Some jurisdictions blocked operations entirely. Others allowed limited access. The litigation has proven costly and slow moving.
Light & Wonder operates under a different calculus. As a major casino and gaming technology company, the firm stands to lose revenue if prediction markets siphon action from traditional sportsbooks and online gambling platforms. The company lobbies aggressively on gaming regulation.
Glaser's proposal targets payment processors directly, asking them to refuse service to prediction market operators. This weaponizes the financial system against a competitor category. It mirrors tactics used against online poker after the Unlawful Internet Gambling Enforcement Act passed in 2006, when payment processors voluntarily abandoned the space under regulatory pressure.
The prediction market sector has exploded in the U.S., with platforms like Polymarket and Kalshi capturing millions in wagering volume. These platforms operate in a gray zone. The Commodities Futures Trading Commission claims jurisdiction over event derivatives. State gaming regulators view them as unlicensed betting operations. Federal law is ambiguous.
Glaser's payment platform strategy sidesteps legal interpretation entirely. If prediction market players cannot deposit