Nine Democratic members of the US House of Representatives sent a formal letter to the Federal Trade Commission concerning its investigation into prediction market platforms, reportedly this week. The available report text gives no further details about the letter or the investigation.
FTC scrutiny may shape platform oversight, but the report provides no details about the investigation.
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Senator Elizabeth Warren and 41 other lawmakers asked the CFTC and the US Office of Government Ethics to issue guidance on federal employees trading on prediction markets. Their 29 March letter seeks a staff briefing and responses by 13 April, and says existing law bars the use of non-public information for personal gain in such trades.
The CFTC warned prediction market exchanges about manipulation risks in markets involving public figures’ statements or actions. The report also covered NCPG’s response to criticism of its industry funding model linked to prediction markets.
The Commodity Futures Trading Commission (CFTC) has warned prediction market exchanges that contracts tied to public figures' statements or actions carry heightened manipulation risks, according to a staff advisory issued by the agency's Division of Market Oversight. The advisory does not ban the contracts. It encourages exchanges to consult the regulator while designing such contracts, to establish whether heightened manipulation risks exist and whether controls can mitigate them.
It was reported that IGA and AGA representatives told Congress sports prediction markets threaten regulated gaming. They attributed more than $1.2bn in lost tax receipts to the products.
The New York State Gaming Commission launched its “Avoid Risky Bets” campaign warning residents about offshore gambling sites, prediction markets and sweepstakes-style casinos, which it says are illegal in the state. The commission said these platforms can lack consumer safeguards and urged residents to report suspected illegal gambling to state authorities.
US Senator John Curtis asked the Senate Judiciary Committee to examine whether presidential family connections enabled personal financial gain or privileged access. His letter of 21 September specifically cited Donald Trump Jr.'s links with Kalshi and Polymarket.