NCLGS supports US states having ‘primary authority’ over prediction market regulation

The National Council of Legislators from Gaming States (NCLGS)’s Executive Committee has approved a prediction markets resolution aimed at allowing US jurisdictions to retain “primary authority” over the regulation of event contract trading. 

Juliann Barreto, COO of Spectrum Gaming Group which serves as NCLGS Executive Director, also spoke on the resolution, having said, “NCLGS exists to provide legislators with objective, substantive education on the most important issues facing gaming policy.

“Prediction markets represent one of the most significant emerging issues confronting state policymakers, and we have ensured that our members hear directly from experts on all sides of the debate.”

Within the resolution, NCLGS shares its belief that prediction markets “operate outside the established regulatory frameworks” of US states, and confirms its opposition to “unregulated and unlicensed” event contract trading. 

The organization called upon US lawmakers to “clarify the legal status” of such activity and “establish clear federal guidelines that prevent regulatory arbitrage.”

NCLGS’ resolution also urges the Commodity Futures Trading Commission (CFTC) to “cease treating politically and sports-oriented prediction markets as legitimate financial instruments exempt from gaming regulation.”

The NCLGS' view directly contradicts that of Michael Selig, CFTC Chair, in Netflix's new documentary on prediction markets.

Indian Gaming Association (IGA) Chairman David Bean also spoke before US lawmakers on July 21 to discuss concerns of how prediction markets could impact Tribal gaming operations across the country. 

Chairman Bean presented the “perspectives of Tribal Governments and (IGA) on the expansion of sports event prediction markets” as part of his testimony before the US House Committee on Agriculture’s Subcommittee on Commodity Markets, Digital Assets and Rural Development.

Presented as “Examining Customer Protections and Market Integrity in Sports Event Prediction Markets,” the hearing represented Tribal regulators’ next phase of pushing back against event contract trading.