Pennsylvania Gaming Control Board (PGCB) Executive Director Kevin O’Toole has submitted comments to the Commodity Futures Trading Commission (CFTC) as part of the Commission’s public commentary period on prediction market regulations.
O’Toole emphasized the regulator’s belief that prediction market operators are offering sports wagering in violation of state law and refuse to “adequately consider” issues related to underage gambling.
“By allowing designated contract markets (DCMs) to masquerade as unregulated sportsbooks, the Commission has abandoned its historical mandate, ignored its own regulations and actively endangered a highly vulnerable demographic of young adults,” O’Toole said.
“Today, the landscape has deteriorated. One cannot only wager upon the sporting events Senator Lincoln expressly warned, but also on pop-culture and political novelties such as whether a particular person will appear at the Met Gala, who will win Survivor – Season 50 and whether President Trump will utter the phrase ‘Make Iran Great Again’ during the month of April 2026 on Kalshi.”
The CFTC concluded its 45-day public commentary period on proposed rulemaking for prediction markets on May 1, having also received responses from the Coalition for Prediction Markets, NBA and Democratic lawmakers.
O’Toole issued his comments to CFTC Secretary Christopher Kirkpatrick, believing prediction markets have “perfected a wildly addictive formula” to target “young, inexperienced bettors.”
“This is not speculation; these comments and statistical findings are grounded in facts and science that can’t be ignored, though some representatives of the prediction market industry would prefer to do just that,” O’Toole continued.
“Part of the appeal is platforms claiming users are betting against other players, rather than the house. The mechanics are deceptively simpler: either the thing happens, or it doesn’t. Just because the Commission may be able to authorize DCMs offering these markets, doesn’t mean it should.”
Kalshi, which currently serves as a member of the Coalition for Prediction Markets, responded to the CFTC by stating the definition of swaps is “certainly broad enough” to include sports event contracts.
Fellow operators involved with the Coalition requested the CFTC apply its “principals-based regulatory framework” to cover what can or cannot be offered as a contract.
The CFTC filed a preliminary injunction motion in New York District Court on May 1 to prohibit Attorney General Letitia James from pursuing criminal or civil enforcement against prediction market operators
