CFTC chairman Michael Selig said he would not decide how the agency should treat sports prediction contracts, leaving the issue to courts. He cited legal questions about whether the contracts constitute gaming and said court rulings would guide the agency; the issue could reach the US Supreme Court.
The unresolved federal position leaves operators and exchanges facing continued uncertainty over sports prediction markets.
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Reportedly, Two federal appeals courts disagree on whether sports event contracts constitute bets. Three petitions are before the Supreme Court as Kalshi continues to record trading highs.
Indian Gaming Association chairman David Z. Bean urged a House subcommittee to advance legislation and amend a separate bill to protect tribal sovereignty and state gaming laws from sports and casino-style wagering on prediction markets. He also called on Congress to oppose a pending Commodity Futures Trading Commission proposal that he said would remove restrictions on gaming-related event contracts.
NBA commissioner Adam Silver said the league considers prediction markets such as Kalshi and Polymarket a form of sports gambling. He said lawmakers and courts will determine their legal status, with cases involving the platforms under way.
Kalshi and other prediction-market platforms are expanding into sports contracts in the United States, bringing their claimed federal oversight into conflict with state sports-betting rules. Nevada, New Jersey and Maryland have moved to block Kalshi's sports markets, while Kalshi has filed lawsuits challenging those actions; the jurisdictional dispute remains unresolved.
CFTC chair nominee Michael Selig told the Senate Agriculture Committee that he would follow court decisions on whether sports event contracts constitute gaming. Senators asked how he would address sports prediction markets if confirmed; a confirmation vote was scheduled for that afternoon.