Florida's attorney general is suing Stake and VGW over alleged illegal gambling, and naming their payment processors as defendants too. The case could pull banks and card networks into the same legal exposure hitting prediction markets like Kalshi and Polymarket.
In this article in American Banker, Andy Bayley, Director of Risk and Policy at LegitScript, explains how banks and payment processors are warily assessing the opportunity against the risk inherent in this market:
"If I'm a bank, I'm waiting on the edge of a knife," Bayley said. "There's a lot of binary risk. It's, 'We've been doing banking illegally' or 'We've missed out on billions.'"
Read the full article for more.