The American Gaming Association (AGA) has written to the Commodities Futures Trading Commission (CFTC) to request that it be given a seat at a roundtable discussion next month regarding the CFTC’s position on sports event futures trading.
On Feb. 5, the CFTC announced it would hold a public roundtable in Washington, D.C. in late March with the goal of informing its approach to regulation and oversight of prediction markets.
Acting CFTC Chairman Caroline D. Pham noted that the commission’s current interpretations regarding event contracts are “a sinkhole of legal uncertainty.”
In the letter it sent to the CFTC on Feb. 20, the AGA reiterated its stance that sports futures contracts pose “an unfair economic threat” to sportsbook operators because they mimic gambling.
The association also stressed that predictions markets’ sports offerings do not provide consumer protections and threaten to violate tribal rights with respect to gaming exclusivity in states such as California, Florida and New Mexico.
Kalshi expands sports contracts as sportsbooks take notice
Platforms including Kalshi and Crypto.com have begun offering futures events trading on sports markets in recent weeks after a flurry of political betting activity last fall.
Kalshi recently confirmed it took nearly $27 million in total volume for trading on Super Bowl LIX. It also informed the CFTC that it is “self-certifying” contracts that would act similarly to singles wagers and proposition bets.
“The AGA has not taken a position on election contracts or others unrelated to sports …” noted the AGA’s letter to the CFTC, signed by the AGA’s SVP of Government Relations Chris Cylke. “However, the AGA and our members have very strong concerns about the recent self-certification of what are essentially sports betting futures, which are currently available to retail customers in all 50 states.”
The AGA reiterated to SBC Americas that it opposes efforts by trading platforms to “circumvent” state regulations.
Sportsbook leaders are starting to sit up and take notice. DraftKings CEO Jason Robins said recently that sports futures trading would expand the total addressable market for sports betting, and BetMGM chief Adam Greenblatt has suggested that the brand could be well-positioned to explore the avenue.
Titus brands sports contracts “backdoor” betting
The AGA aren’t the only noteworthy figures to reach out to the CFTC about sports events contracts.
Congresswomen Dina Titus said on Monday she had contacted the commission to voice her concerns.
“It is a backdoor way to allow sports betting in 50 states, ignoring consumer protections, responsible gaming, integrity monitoring and state tax revenue rules and regulations,” wrote Titus in a social media post.
Incoming CFTC chief has close ties to Kalshi
The CFTC is reviewing the legality of its sports contracts and has requested that providers like Crypto.com and Robinhood remove their sports-related markets.
Pham has expressed a willingness to see the CFTC become more accommodating to events trading and has called prediction markets “an important new frontier” to be explored.
He will shortly be replaced by a new permanent CFTC leader, President Donald Trump‘s appointee Brian Quintenz, who is a Kalshi board member and a former advisor for Crypto.com. Donald Trump Jr. also recently joined that company as an advisor.
