In a move set to transform the sports betting landscape in Mississippi, PropSwap and Bally Bet have announced a groundbreaking partnership that introduces secondary market wagering to retail sportsbooks. The collaboration, which launched just in time for March Madness, promises to change how sports bettors approach their wagers by allowing them to capitalize on favorable odds shifts before events conclude.
A New Era for Sports Betting
The partnership, announced on March 27, connects PropSwap’s innovative secondary betting market with Bally Bet’s established retail locations at Hard Rock Hotel and Casino Biloxi and Bally’s Vicksburg Casino. This integration allows bettors to sell their active betting slips through PropSwap’s online marketplace, potentially securing profits regardless of the final outcome.
“We are forever changing how people wager on sports,” said Luke Pergande, CEO and founder of PropSwap. “Your bets no longer need to win to get paid. They simply need to improve. This concept changes everything for a gambler.”
The timing couldn’t be better for sports enthusiasts, as the partnership went live just as the NCAA basketball tournament reached the Round of 16 for both men’s and women’s brackets—one of the busiest betting periods of the year.
Data-Driven Betting Innovation
What makes this partnership particularly noteworthy is the decade of data supporting its business model. According to PropSwap, when bettors have confidence in their ability to exit wagers at fair market values, they’re more likely to place larger bets and engage in futures and parlay betting.
This insight could significantly impact betting habits in Mississippi, where online sports betting is only permitted within casino premises. The retail-focused partnership aims to increase both ticket volume and overall handle at Bally Bet locations by giving bettors more flexibility and reducing the all-or-nothing nature of traditional sports wagering.
Strategic Growth in the Regulated Market
The collaboration with Bally Bet marks PropSwap’s second major partnership in Mississippi, following its April 2024 agreement with Harrah’s Gulf Coast. These strategic moves highlight PropSwap’s commitment to expanding within the regulated betting industry, despite facing regulatory challenges in other states.
To further strengthen its position, PropSwap has brought on gambling industry expert Dustin Gouker as a strategic advisor.
“PropSwap has been an innovator in sports betting, and I am excited to help the company in the next phase of its growth,” Gouker commented. “Deals like this with retail sportsbooks in a state with legal sports betting are a testament to what Luke and the team have built, and their desire to help grow the regulated industry.”
Overcoming Regulatory Hurdles
PropSwap’s expansion hasn’t been without challenges. Earlier this year, the Nevada Gaming Control Board rejected the company’s proposal to allow licensed operators to trade sports bets within the state, citing licensing concerns and demand issues.
Despite this setback, PropSwap has successfully established operations in over 20 states, with Mississippi becoming a key market for demonstrating the viability of secondary betting markets.
What This Means for Bettors
For Mississippi sports fans, this partnership introduces a new dimension to sports wagering. Rather than waiting for events to conclude, bettors can now capitalize on favorable odds movements by selling their tickets when values appreciate.
This added flexibility could attract both casual and serious bettors who appreciate having more control over their wagering portfolio. The ability to lock in profits before a final outcome is especially valuable during tournaments like March Madness, where unexpected upsets can quickly change a ticket’s value.
As the regulated sports betting market continues to evolve, innovative partnerships like this between PropSwap and Bally Bet may set the standard for how sportsbooks operate in the future—focusing not just on taking wagers, but on providing bettors with more dynamic options throughout the lifecycle of their bets.
Massachusetts has initiated a formal investigation into Robinhood’s new prediction-markets feature, which allows users to bet on NCAA March Madness outcomes. This development has triggered alarms among state regulators, prompting them to question the platform’s approach to blending investment activities with gambling tendencies.
Subpoena and Concerns from Secretary of the Commonwealth
Bill Galvin, the Secretary of the Commonwealth, has taken a proactive stance by issuing a subpoena to Robinhood on March 20. The subpoena seeks detailed information on the number of users from Massachusetts who have shown interest in trading contracts linked to college basketball events. Furthermore, Galvin’s office is delving into Robinhood’s internal communications to understand the rationale behind launching these betting options amidst ongoing regulatory scrutiny.
Galvin expressed his apprehensions, remarking, “This initiative seems like another one of Robinhood’s clever tactics designed to divert young investors from traditional investing by enticing them with gambling on popular sports events.”
Robinhood Defends Its New Venture
Despite the controversy, Robinhood defends its actions by stating that its event contracts are fully compliant with U.S. Commodity Futures Trading Commission (CFTC) regulations. A spokesperson from Robinhood emphasized the growing relevance of prediction markets among both retail and institutional investors, highlighting the platform’s commitment to providing these services in a regulated and secure environment.
The Blend of Sports and Investment: A Controversial Mix
The core of the debate lies in the nature of these event contracts, which many critics argue blurs the line between investing and gambling. This controversy isn’t new to Robinhood, which had to pull back a similar feature related to the Super Bowl following a directive from the CFTC. Nonetheless, the platform proceeded with the March Madness event contracts, asserting ongoing compliance with regulatory standards.
Industry Experts Weigh In
The industry’s reaction has been mixed. While some analysts view Robinhood’s move as an innovative expansion of investment options, others perceive it as a strategic maneuver to skirt traditional gambling regulations. Notably, established sports betting operators have voiced dissatisfaction, citing the unfair competitive edge Robinhood might gain by bypassing the hefty licensing fees that traditional betting platforms are subjected to.
Market and Future Outlook
Interestingly, Robinhood’s stock surged by 9% following the announcement of the investigation, reflecting a bullish investor sentiment on the company’s capability to navigate these regulatory challenges. The company’s stock has overall increased by 23% since the start of the year.
Looking ahead, the future of prediction markets in the U.S. remains a hotly debated topic. With the CFTC standing by its position that it cannot legally block Robinhood’s offerings, state regulators like Galvin are still concerned about the potential impacts on retail investors, particularly the younger demographic attracted to such events.
In an effort to address these concerns, Robinhood’s partner, KalshiEX, announced a collaboration with IC360 to implement robust responsible gaming measures, including trading limits and voluntary opt-out options. This initiative underscores the industry’s recognition of the delicate balance required between innovation and consumer protection in the evolving landscape of financial products linked to popular sporting events.
As this situation unfolds, the intersection of sports, betting, and financial markets will undoubtedly continue to provoke dialogue and potentially reshape regulatory frameworks in the U.S.
Lawmakers Target “Outdated” Excise Tax That Favors Illegal Operators
Congressional Gaming Caucus leaders have launched a renewed effort to abolish the federal excise tax on sports wagers, arguing that the seven-decade-old levy hampers legitimate businesses while giving illegal bookmakers an unfair advantage.
Representatives Dina Titus (D-Nevada) and Guy Reschenthaler (R-Pennsylvania) recently introduced the Discriminatory Gaming Tax Repeal Act of 2025, which would eliminate both the 0.25% handle tax on legal sports bets and the $50 annual tax imposed on sportsbook employees.
“The current tax structure creates an uneven playing field,” said Rep. Titus. “When I questioned the IRS about where this tax revenue goes in the federal budget, they couldn’t provide an answer. We’re maintaining a tax that federal authorities don’t even track, while simultaneously giving illegal operators a competitive edge.”
The Economic Impact of Sports Betting Taxation
The financial implications of the current tax system are particularly evident during major sporting events. During March Madness 2025, Americans are projected to wager $3.1 billion on tournament games, representing a substantial increase from previous years.
In states with legalized sports betting, the tax burden is significant:
- Nevada’s 66 licensed sportsbooks processed $8.26 billion in wagers in 2023, generating $481.3 million in revenue and $32.5 million in state tax contributions
- New York operators handled $19.18 billion in bets in 2024, producing $1.7 billion in gross revenue and $862.6 million in state taxes
- Pennsylvania, as the fifth-largest sports betting market, could have saved approximately $21 million in 2024 alone if the federal tax were eliminated
Historical Context and Legislative Challenges
The federal excise tax was originally implemented in 1951 to combat illegal gambling operations. However, following the Supreme Court’s 2018 decision allowing states to legalize sports betting, industry advocates argue the tax has become obsolete.
This marks the fourth attempt by Titus and Reschenthaler to advance similar legislation, with previous bills introduced in 2019, 2021, and 2023. Despite growing bipartisan support and backing from the American Gaming Association, previous efforts have stalled in House committees.
“Unfortunately, outdated tax codes and burdensome regulations penalize legal operators and incentivize illegal activity,” Reschenthaler noted. “Our bill ensures the gaming industry can continue supporting good-paying jobs and driving economic growth nationwide.”
As the legal sports betting landscape continues to evolve across 38 states and Washington D.C., pressure mounts to modernize federal tax policies that many view as impediments to the industry’s legitimate development and competitiveness against unregulated markets.
Robinhood Expands Beyond Traditional Trading
Robinhood, known for its accessible stock trading app, is entering new territory with prediction markets through a partnership with Kalshi. This expansion moves the company beyond traditional financial trading into speculative betting on future events, including NCAA March Madness basketball.
Betting Options and Partnership
The new prediction markets hub within the Robinhood app allows users to wager on outcomes across sports, economics, and political events. Sports enthusiasts can now bet on March Madness directly through their Robinhood accounts.
Kalshi, an established prediction markets operator known for political and economic events, is helping Robinhood branch into sports-related prediction contracts. This collaboration gives Robinhood’s users easy access to betting without needing multiple platforms.
Regulatory Compliance
Robinhood has worked with the Commodity Futures Trading Commission (CFTC) to secure necessary permissions for its prediction markets hub. JB Mackenzie, VP & GM of Futures and International at Robinhood, noted that “these markets intersect significantly with sports, politics, economics, and popular culture,” while emphasizing the platform’s compliance measures.
The service is available nationwide except in Nevada, where regulatory hurdles have prevented immediate launch.
User-Friendly Pricing
Robinhood has introduced an affordable pricing model with customers paying only a two-cent fee per contract, split evenly between Robinhood and Kalshi. This structure aims to encourage participation without significant financial barriers.
Future Plans
While initially focusing on high-profile events like March Madness, Robinhood plans to introduce additional categories including entertainment and cultural predictions. The wider industry continues to face regulatory scrutiny, with upcoming CFTC roundtable discussions aimed at clarifying frameworks for sports prediction markets.
Kalshi CEO Tarek Mansour expressed enthusiasm about the partnership: “March Madness is renowned for its unpredictability. We’re delighted to partner with Robinhood to amplify that excitement through accessible prediction markets for American sports fans.”
Though currently using Kalshi’s infrastructure, Robinhood has indicated potential future independence by developing its own platform or collaborating with other providers. This initiative positions Robinhood uniquely in the growing online prediction and sports betting landscape, leveraging its existing customer base as it continues to diversify beyond stock trading.
Major College Programs Caught in Sports Betting Probe
Recent investigations by gambling monitoring agency ProhiBet have uncovered several betting violations at prominent NCAA institutions, raising concerns about the growing influence of sports wagering on college athletics.
Texas Longhorns Self-Report Major Violations
The University of Texas athletics department has self-reported five members of its program for engaging in prohibited sports betting activities. Two football players and several staff members spent $14,885 on the daily fantasy platform PrizePicks, violating NCAA regulations.
Consequences varied by involvement level. One football player regained eligibility after donating winnings to charity, while a student assistant was terminated for betting on Longhorns games. Other staff received warnings and mandatory gambling education.
Mississippi State Reports Minor Infractions
At Mississippi State University, a male practice squad player from the women’s basketball program placed $10 worth of bets on NFL and college football games. Though these wagers didn’t include Mississippi State contests, they violated NCAA bylaw 10.3, resulting in the deactivation of the player’s betting account and enhanced education efforts.
This represented one of three Level III infractions reported by Mississippi State in 2024.
Digital Monitoring Detects Violations
Both universities employed ProhiBet’s monitoring services to detect gambling activities among athletes and staff. The platform has proven effective in identifying violations before they escalate into major compliance issues.
College Sports Grapple With Betting Boom
These cases highlight the growing tension between widespread legal sports betting and NCAA regulations. As online wagering becomes increasingly accessible, athletic departments face mounting pressure to educate participants about gambling restrictions.
Prevention Measures Intensify
In response to these incidents, universities are implementing additional safeguards including:
- Enhanced compliance training for athletes and staff
- Regular auditing of potential betting activities
- Improved reporting channels for suspicious behavior
Industry experts predict similar cases will increase as sports betting continues its rapid expansion into mainstream culture, creating an ongoing challenge for NCAA compliance departments nationwide.