Organizations such as the American Gaming Association (AGA), Indian Gaming Association (IGA) and Association of Gaming Equipment Manufacturers (AGEM) penned a letter to US Senators in hopes of banning event contracts tied to sports and casino-style gaming.
Such language would be included within legislation tied to crypto market structures, with the request stating each organization is “united in our concern that prediction markets have fueled the largest expansion of gambling in US history over the past 18 months.”
“By offering nationwide sports betting through so-called ‘sports event contracts’ and branding it as a federally regulated financial product, these platforms have bypassed state and Tribal law, weakened consumer protections and undercut a system built on local control — one that supports jobs, generates tax revenue and funds community priorities,” the letter stated.
“These platforms allow individuals as young as 18 to place bets in jurisdictions that have not authorized sports betting. They lack meaningful responsible gaming safeguards and market gambling products as ‘investments.’
The CFTC was created to oversee commodities and derivatives markets, not gambling and not sports wagering. It lacks both the expertise and the infrastructure to police nationwide sports betting, particularly when robust state and Tribal regulatory systems already exist.”
Fellow Tribal organizations such as the California Nations Indian Gaming Association (CNIGA), Oklahoma Indian Gaming Association (OIGA) and the National Congress of American Indians also sent the request to US Senators.
The letter continued: “Litigation may eventually clarify the law, but this is ultimately a question of congressional intent.
“Congress should not wait while this nationwide expansion of gambling continues. It should use crypto legislation to reaffirm a simple principle: sports betting falls outside the CFTC’s remit and cannot be offered through prediction market platforms.”
AGA President & CEO Bill Miller addressed the CFTC’s proposal of a regulatory framework for prediction markets on June 10, which also provided the first definition of gaming under CFTC terminology.
The notice of proposed rulemaking also opened a 45-day public commentary period for potential amendments to the regulations. The Commission requested public comment on a variety of topics, including insider information, margin trading, core principles, blockchain markets and public-interest bans.
The AGA told Congress that the CFTC is moving beyond its intended remit on May 21 by allowing sports-related prediction markets to operate under federal derivatives rules
