Circa Sports Owner Derek Stevens Calls Kalshi, Polymarket “Pirates” and “Thieves” in Blistering Take on Prediction Markets

Circa Sports owner Derek Stevens didn’t hold back this week when asked about prediction markets like Kalshi and Polymarket, calling the fast-growing platforms “pirates” and “thieves” who are undercutting the regulated sports betting industry by dodging taxes and fees legal sportsbooks are required to pay.

Stevens made his comments in an interview published Tuesday, arguing that prediction markets are able to offer tighter, more attractive pricing than traditional sportsbooks specifically because they avoid the same financial obligations Circa and its competitors must shoulder in every state where they operate legally.

“Effectively, They’re Thieves”

“They’re pirates. They’re thieves,” Stevens said of Polymarket, Kalshi, and similar platforms. “We’d be able to offer minus -102 splits either way as well if we didn’t have all the fees to pay. I tend to believe that more balanced heads are going to prevail.”

Stevens rattled off the list of costs regulated operators like Circa absorb that prediction markets currently skip, including the federal sports-betting excise tax, state gaming taxes, league-data fees, and contributions to problem-gambling funds. “We’re paying all those fees. They don’t. Effectively, they’re thieves,” he said.

He leaned on a colorful analogy to make his point, comparing prediction markets to hijacking a truckload of televisions and then setting up shop in a Best Buy parking lot to sell them at half price. Illinois, he noted, charges a 25-cent fee on every wager placed through a licensed sportsbook. “Just because Kalshi and Polymarket are avoiding those fees, does that make them better? I think no. It’s preposterous,” Stevens said.

Handle Share, Boomer’s, and a Look Ahead to Arizona

Asked whether the fight over prediction markets could eventually reach the Supreme Court, Stevens said he doesn’t expect states to back down easily. “I don’t see the state of New York backing down and saying, ‘Oh, just because you guys are shrewd, we’re going to take a billion-dollar hit on our state revenue,'” he said.

Despite the frustration, Stevens acknowledged Circa’s low-hold business model “can compete pretty well” with prediction markets, though he admitted the Las Vegas book has felt some pinch. “With us running a low-hold model, we felt prediction markets took a decent amount of handle away from us,” he said.

Stevens was far less concerned about Boomer’s, a newer entrant to the Nevada sportsbook market. “Boomer’s is great,” he said. “Nevada’s so robust that the pie is substantial.” He suggested the newcomer is largely filling space left behind when William Hill exited Nevada, adding that “it doesn’t really impact us.”

On the World Cup’s effect on business, Stevens said the tournament boosted retail traffic more than betting handle. “Stadium Swim was sold out every day, every game. The sportsbook was filled,” he said, describing the handle itself as merely “okay.” He believes World Cup bettors were a mix of first-timers and dormant football bettors drawn back in by the tournament. “A lot of people did catch World Cup fever, myself included,” he said.

Circa also confirmed a new expansion is on the way, having recently secured a license in Arizona. Stevens said the online-only operation is targeting a January 2027 launch, “still subject to change,” and noted the licensing process was straightforward. He also hinted at eventually building a retail presence in the state, possibly through a partner operator, though he declined to share specifics.

The comments add Stevens to a growing list of regulated sportsbook executives publicly pushing back on the rise of prediction markets, a debate that continues to intensify as platforms like Kalshi and Polymarket expand their sports-related offerings without the licensing framework that governs traditional operators.