A group of federally recognized tribes and tribal associations are voicing their opposition to sports event contracts to the U.S. Commodity Futures Trading Commission (CFTC).
Tribal organizations including the Indian Gaming Association (IGA), the California Nations Indian Gaming Association and the Tribal Alliance of Sovereign Indian Nations have submitted feedback concerning event contracts at the request of the CFTC.
Last month, the CFTC announced plans to discuss the regulation of event contracts by holding a series of roundtables to discuss prediction markets like Kalshi.
The IGA and other tribal opponents of event contracts have submitted suggestions ahead of the roundtables advising the CFTC to make trading sports event contracts unlawful.
“The IGA strongly urges the CFTC to make it clear that sports contracts are prohibited from being listed or made available for clearing or trading. Trading of sports contracts is gaming, violates state and federal law and is contrary to public policy,” said the IGA in a letter to Acting CFTC Chair Carolina Pham. “Allowing sports contracts to be listed and traded will interfere with the sovereign right of tribes and states to exercise their police power to regulate gaming within their respective territories—a right long recognized by courts.”
The IGA is an inter-tribal organization comprised of 124 federally recognized tribes with several also submitting feedback regarding sports event contracts directly to the CFTC.
Federally recognized tribes that also sent letters include the Chicken Ranch Rancheria Me-Wuk Indians of California, the Santa Ynez Band of Chumash Indians, the Yuhaaviatam of San Manuel Nation and the Elk Valley Rancheria, California.
The tribes raised cannibalization over event contracts due to potential revenue losses.
“Listing and trading sports contracts will siphon critically needed revenue that supports tribal and state governments and their citizens by providing an end-run around tribal and state regulation of sports betting,” said the Santa Ynez Band of Chumash Indians.
The CFTC will continue to consider the regulation of event contracts with roundtables on the issue scheduled to take place over the next several months. In addition to public input, the roundtables will also utilize studies, data and expert reports to discuss digital assets.
CFTC sends formal request to finance company
Tribal groups and communities have voiced their concerns regarding event contracts after the CFTC sent a formal request to Robinhood asking the fintech company to stop offering its sports event contracts ahead of Super Bowl LIX on Feb. 9. Before the CFTC sent its request, Robinhood had secured a deal with ForecastEX to offer event contracts.
