SEC Chair Paul Atkins told lawmakers that prediction markets may fall under both the SEC and CFTC, according to the report. He said some contracts could resemble securities and that the agencies should coordinate; the report cited an industry value of $63.5bn, attributed to Certik.
Possible shared SEC and CFTC oversight could change how prediction-market contracts are classified and regulated.
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The Pennsylvania Gaming Control Board submitted comments to the Commodity Futures Trading Commission ahead of proposed federal rules on prediction markets. Executive Director Kevin O’Toole said the board considers sports-event contracts to constitute unlawful sports wagering under Pennsylvania law and raised concerns about participation by people under 21.
Maryland’s Lottery and Gaming Control Agency reportedly sent the CFTC a letter urging a ban on sports event contracts, using wording from a template the American Gaming Association allegedly supplied. The agency said it reached its position independently; the Coalition for Prediction Markets’ chief executive questioned its impartiality.
Nevada Gaming Control Board Chairman Mike Dreitzer said on a podcast that prediction market operators such as Kalshi are running illegal sportsbooks, and that Nevada has no fallback plan if the Supreme Court sides with them. He urged tribes and licensees to hold firm, even though several tribes have partnered with Kalshi this month. The comments followed a CFTC interim rule of 9 October excluding casino-style gambling products from the definition of a swap, alongside a proposed rule covering event contracts.
CFTC chair Michael Selig proposed new prediction market rules at the agency’s first Innovation Advisory Committee meeting on Thursday. Selig also defended federal oversight against challenges concerning legality and self-certification limits.
CFTC chair Michael Selig criticised New York Attorney General Letitia James over the dispute about prediction markets, in remarks at a White House meeting on 20 August. James has alleged that Kalshi breached New York sports-betting age rules by allowing people aged 18 to 20 to trade sports-related contracts; Selig said the CFTC had used emergency powers to block a state temporary restraining order.