A group of Senate Democrats urged the CFTC to clarify that it will prohibit event contracts tied to an individual’s death, war or terrorism. The senators cited Polymarket markets involving the Artemis II mission, Venezuela’s leader and a Ukrainian town, and argued that such contracts are barred under federal law.
The request puts the CFTC’s approach to prediction-market contracts and federal oversight in focus.
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The American Gaming Association and other trade groups are urging US lawmakers to prohibit sports-related trading on prediction markets. The groups argue that the Commodity Futures Trading Commission has exceeded its authority, while bipartisan legislation introduced in March would bar the agency from permitting sports and casino-style event contracts.
Player unions representing the NFL, MLB, NBA, MLS and NHL asked the CFTC to bar contracts based on negative outcomes or events manipulable by one person. In a submission to the agency, they cited athlete safety and sports integrity risks; the CFTC’s comment period drew more than 1,500 submissions.
Ten Queens lawmakers urged New York Governor Kathy Hochul to intervene in a dispute over Resorts World New York City’s slot tax rate. The casino pays 56% of slot revenue, while the New York State Gaming Commission says a separate horse-racing funding obligation could add 16 percentage points, taking the combined rate to 72%; the additional payments would total about $150 million annually over 15 years.
Twenty-three Senate Democrats asked Commodity Futures Trading Commission chair Michael Selig on Friday to reconsider his support for prediction markets offering contracts on sports outcomes. Earlier in February, the CFTC withdrew a proposed rulemaking that included sports events in the definition of gaming; the senators urged the agency to retain restrictions on such contracts if it starts a new rulemaking.
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.