The CFTC proposed rules to strengthen the framework for offering event contracts. The American Gaming Association criticised the proposal, saying it made a “mockery” of existing sports betting laws.
The proposal could change the rules governing event contracts offered in US prediction markets.
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Ohio state senator Bill DeMora introduced Senate Bill 430 to classify trading in sports-event contracts as sports gaming, the report said. The proposal would require platforms to obtain licences, follow regulator-set rules and pay taxes; it would give the Ohio Casino Control Commission oversight of those platforms.
Reportedly, the Indian Gaming Association's conference chairman addressed how tribes are responding to the growth of sports event contracts from prediction markets. The spread of such contracts creates uncertainty for federally recognised tribes, prompting discussions about the next steps in the fight.
The American Gaming Association urged Congress to classify sports event contracts as gambling and bar CFTC-registered platforms from listing them through self-certification. Testifying before a Senate Agriculture subcommittee, AGA senior vice-president Christopher Cylke said platforms including Kalshi and Polymarket operate outside state and tribal gambling systems. The association estimated that states and tribes had lost more than $1.2 billion in gaming tax revenue since sports contracts began.
Democratic lawmakers led by Senator Jeff Merkley urged the CFTC to issue rules against insider trading and restrict event contracts involving elections, military activity, government actions and sports. Their letter named Kalshi and Polymarket and called for limits on contracts without a valid economic hedging interest. The CFTC’s consultation on rulemaking was due to close Thursday, the report said.
Wisconsin filed lawsuits in Dane County against Crypto.com, Polymarket and Kalshi, as well as distribution partners Robinhood and Coinbase, over event contracts. The state alleges the contracts amount to wagers under Wisconsin law; Kalshi argues that federal authority over its exchange-listed contracts rests with the CFTC.