Two of the largest trade associations in the gaming industry are urging Congress to take action against the offering of “unregulated” sports event contracts.
American Gaming Association (AGA) CEO Bill Miller and Indian Gaming Association (IGA) Chairman David Bean sent a letter to Senate and House members, taking issue with the self-certification protocols used by prediction markets to offer trading on sports events. The Commodity Futures Trading Commission (CFTC), the regulator of event contracts, allows registered prediction markets to self-certify trading markets for consumers, allowing them to offer markets that resemble single and parlay sports wagering. The AGA and IGA believe the self-certification process lacks oversight.
“These contracts are being offered in flagrant disregard of state laws, tribal sovereignty, the Commodity Exchange Act and CFTC regulations,” read the letter. “They mislead consumers into believing that a sports bet is an investment, fail to protect the young and the vulnerable, open the door to money laundering, match fixing and insider trading. They rob state budgets and tribal finances while simultaneously forcing states and tribes to expend massive legal resources to defend their sovereignty.”
The AGA and IGA consider the ability to offer self-certified markets an exploitation of the CFTC and an undermining of state law and tribal sovereignty that aims to protect consumers, particularly under the Indian Gaming Regulatory Act. The act provides federally recognized tribes with the exclusive right to offer gaming on their land. The IGA and AGA also consider the sports event contracts to be a violation of the federal Wire Act.
Certain political event contracts also raise concerns
In addition to sports event contracts, the AGA and IGA are also taking issue with political contracts that seek to “capitalize on tragedy, invite manipulation, and undermine public trust.” The two associations point to event contracts tied to political events, including overseas conflicts and the capture and arrest of Venezuelan President Nicolás Maduro. While contracts related to Maduro drew quite a bit of attention, none of them were offered on a US-facing, CFTC-certified exchange.
Calls to include prediction market language in crypto bill
As a result of the proliferation of sports event contracts, the AGA and IGA want Congress to consider adding event contract language into the newly introduced cryptocurrency bill. The associations believe the legislation provides a “bipartisan opportunity” to ban prediction markets from offering event contracts that resemble sports betting and casino gaming.
Senators question the CFTC about sports event contracts
The associations are calling for congressional action after a group of senators sent a letter in October 2025 to the CFTC, inquiring about why the agency allows sports event contracts.
Six lawmakers wrote to former CFTC Acting Chair Caroline Pham to remind the agency that it should prohibit what they consider to be nationwide sports betting, as it bypasses the framework laid out by active state and tribal gaming laws. In the letter, the lawmakers also voiced concerns about the market self-certification process offered by the CFTC.
How new CFTC chair plans to approach event contracts
The AGA and IGA are approaching Congress about sports event contracts as the CFTC is under new leadership with the confirmation of crypto expert Michael Selig as chairman.
Selig, who has served as chief counsel for the SEC’s Crypto Task Force, was nominated by President Donald Trump behind his experience in finance and crypto.
During his confirmation hearing, Selig was asked about his potential approach to sports event contracts, with him declaring he would “defer to the courts” on the matter.
Selig plans to use the courts as a reference to how to navigate the regulation of sports event contracts. He also plans to look to Congress to decide whether to change “statutes in certain areas.”
