- A bipartisan coalition of 41 AGs submitted a comment letter to the CFTC urging the Commission to affirm that sports-related prediction market “event contracts” fall under state gambling authority, not exclusive federal commodities jurisdiction, continuing a debate over authority between state and federal regulators seeking to oversee prediction markets.
- In the letter, the coalition argues that sports-related event contracts are indistinguishable from traditional sportsbook bets because users can wager on game winners, point spreads, totals, and player prop bets on prediction market platforms.
- The AGs further contend that sports bets are not “swaps” under the Commodity Exchange Act because they do not serve the hedging, price-discovery, or risk-allocation purposes of derivatives regulated by the CFTC.
- The AGs urge the CFTC to confirm through rulemaking that it lacks jurisdiction over sports-related contracts, arguing that states have the experience and tools to regulate sports betting, including licensing, age limits, consumer protections, voluntary exclusion lists, and safeguards against problem gambling.