Masto says sports prediction markets are gambling and criticises CFTC directive
Regulation1 min read
Nevada senator Catherine Cortez Masto said sports prediction markets constitute gambling and criticised a CFTC directive on access to federally regulated exchanges. The directive gave exchanges 30 days to comply or explain why they could not, a requirement that the coverage says complicates operators’ responses to state court orders.
Federally regulated exchanges have 30 days to lift restrictions based on traders’ residence within the United States or explain why they cannot, under an order issued last week by the CFTC. The order added compliance difficulties for prediction market operators facing court-ordered access limits in states including Michigan, Nevada and Washington.
The CFTC issued an interpretation of Regulation 38.151(b), its impartial-access rule for designated contract markets and their members and people with trading privileges.
Sports prediction markets are plainly gambling, Democratic Nevada Senator Catherine Cortez Masto said as she criticised Commodity Futures Trading Commission Chairman Michael Selig on social media. She said federal courts had repeatedly recognised the authority of states and tribes to regulate gambling in their territories. She also accused the commission’s chairman of encouraging companies to keep offering the bets contrary to court orders.
The move was intended to generate profits for the president’s family by undermining tribal and state sovereignty, Masto said. Donald Trump Jr. has equity stakes in Kalshi and Polymarket and is a strategic adviser to both. Polymarket also received multimillion-dollar funding through rounds led by his venture firm, 1789 Capital.