Prediction market platforms continue to offer sports event contracts that disregard longstanding state-and Tribal law. The claims these operators use to justify these activities are facing growing bipartisan skepticism in Washington and state capitals. Increasingly, policymakers and regulators are stepping up to reaffirm that sports wagers – in any form – fall under state and Tribal frameworks.

The big picture

Since the overturning of PASPA in 2018, voters and elected leaders in 39 states and Washington, DC have made the deliberate decision to legalize some form of sports betting – establishing robust, state-by-state frameworks. These frameworks are overseen by more than 8,400 regulators across legal gaming states nationwide. Prediction markets are now overriding these decisions and regulatory structures by relying on federal commodities law – and the inaction of the Commodities and Futures Trade Commission (CFTC) – to offer sports wagering nationwide regardless of the laws and regulations already in place.