Sporttrade will stop taking wagers in New Jersey, Colorado, Iowa, Arizona and Virginia on 25 May as it pursues entry into prediction markets. The company submitted applications to the CFTC in February; platform access will end by 26 June, with customer withdrawal deadlines varying by state.
Customers and commercial partners face state-specific withdrawal dates as Sporttrade exits sports betting.
The day’s most important stories, free. One email a day.
US Senator Ted Cruz is preparing legislation that would give state and tribal governments authority over sports-related contracts offered by prediction markets, citing Bloomberg Law. Cruz intends to file the bill after the 3 November midterm elections. The measure would bar operators from offering contracts linked to gambling activities, including sports betting, without approval from the relevant state or tribal government.
A bill granting state and tribal governments say over sports contracts sold by prediction markets is being drafted by US Senator Ted Cruz, Bloomberg Law reported. He plans to introduce it once the November 3 midterm elections are over. As of now, the text is absent from Congress' website.
Coinbase agreed to end Michigan sports contract activity by 10 October. The agreement requires Coinbase to close outstanding positions while its appeal continues. The outlet also reported that Webull, Gemini and ProphetX exited Connecticut, while PrizePicks paused new sports prediction entries in Missouri but kept existing entries active.
Under a deal announced Wednesday, Coinbase will halt new sports event contracts in Michigan by Oct. 10, with every open position to be wound down by that date as well, the Michigan Gaming Control Board said in a press release. While the appeal proceeds, the company keeps its legal arguments intact, and Michigan pledged to hold off on enforcement so long as Coinbase stays within the restrictions.
Donald Trump expressed support for US leadership in prediction markets during White House remarks on 19 August. State gambling regulators argue that sports contracts constitute betting requiring state licences, while platforms operate under CFTC oversight. The report cited Kennedy Forum estimates that sports account for 75%–90% of Kalshi’s trading volume and roughly half of Polymarket’s activity.
American Gaming Association chief executive Bill Miller told a US Senate subcommittee on 20 May that the Commodity Futures Trading Commission should focus on financial markets rather than sports betting. Miller argued that prediction markets present sports betting as financial contracts, while Coalition for Prediction Markets senior adviser Patrick McHenry defended operators’ safeguards and the CFTC’s oversight role.
A bipartisan group of 41 state attorneys general urged the CFTC to confirm that states, rather than federal regulators, have authority over sports-related event contracts. In a formal comment on proposed prediction-market rules, the coalition argued that these contracts function as gambling and should fall under state regulation.