Caesars Entertainment chief executive Tom Reeg said state gaming regulators had warned that the company’s land-based licences could be at risk if it offered event contracts. Reeg said Caesars views prediction markets as gambling, according to a media report.
The warning signals potential licence consequences for operators considering offering event contracts.
Quarter ended 30 September 2026
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Panelists at the Next Predict Summit in New York argued that states should not apply gaming laws to sports event contracts traded on federally regulated exchanges. Courts have split on whether the contracts are swaps under the Commodity Exchange Act, and the Supreme Court case involving New Jersey is pending.
Panelists at the Next Predict Summit in New York said states should not apply their gaming laws to sports event contracts traded on federally regulated designated contract markets. The panel discussion, titled "The Jurisdiction Gap: One ruling, Two Very Different Markets," took place on Friday. The industry position is that the contracts are federally regulated derivatives, and that the Commodity Exchange Act gives the Commodity Futures Trading Commission explicit jurisdiction over the transactions.
Crypto.com and Novig have sued Missouri officials in federal court to stop the state enforcing its sports betting laws against their sports event contracts. The suits were filed on Friday as 30-day deadlines expired for six prediction market operators ordered by Attorney General Catherine Hanaway to stop offering the contracts or obtain state authorisation. Crypto.com argues the Commodity Exchange Act gives the CFTC exclusive jurisdiction.
Crypto.com and Novig have taken Missouri officials to federal court in an effort to block enforcement of the state's sports betting laws against their sports event contracts. The suits arrived on Friday, the same day that 30-day deadlines ran out for six prediction market operators told by Missouri Attorney General Catherine Hanaway to halt sports event contracts or secure state authorisation.
The CFTC proposed rule changes on 9 October to classify sports, political, cultural and weather event contracts as swaps under US federal law. The proposal would explicitly include these contracts in the agency’s rules.
The Commodity Futures Trading Commission (CFTC) has proposed amending its rules so that event contracts based on sports, politics, culture and weather are explicitly included in the definition of a swap under federal law. The proposal was announced on 9 October, according to the regulator, and a public consultation has been opened before the agency decides whether to adopt the change.
The US Supreme Court has yet to decide whether to review prediction market litigation involving Kalshi. Legal observers warned that declining review could leave conflicting appeals court decisions unresolved and operators facing separate state disputes over the regulatory status of sports event contracts.
A report dated 12 October 2026 notes that the justices have so far given no indication of whether they will take up the Kalshi prediction market disputes. In the view of legal observers quoted in that report, refusing the petitions would probably push operators into a state-by-state contest over sports event contracts that varies from jurisdiction to jurisdiction.
The CFTC issued two proposals concerning federal oversight of event contracts. The proposals would classify event contracts as swaps while prohibiting traditional gambling, with the expanded definition covering contracts linked to culture, weather, politics and sport.