A former leader in President Donald Trump’s administration is leading a new trade group that advocates against the proliferation of prediction markets and sports event contracts.
Ex-Republican Congressman Mick Mulvaney has been announced as the Executive Director of Gambling Is Not Investing (GINI), a coalition advocating for the enforcement of state and tribal gaming laws for sports event contracts offered by prediction markets.
GINI stated in a press release that its stance is that prediction markets that offer sports event contracts circumvent state and tribal gaming laws. It wants platforms that offer the products to abide by the same consumer protection and regulatory standards that licensed sportsbooks must adhere to, and called on policymakers, regulators and state and tribal leaders to take action against prediction markets “gambling-like offerings.”
The coalition’s current members include Consumer Action for a Strong Economy, the Hispanic Leadership Fund, Moms for America and Frontiers of Freedom.
It if quacks
“Gambling products—regardless of what you call them—must follow established state and tribal laws,” said Mulvaney. “Rebranding sports wagering as ‘trading’ or ‘investing’ or ‘predicting’ misleads consumers, undermines responsible gaming protections, and weakens the state and tribal systems built to protect the public and fund vital community services.
“Consumers deserve consistent protections, regardless of product label. If it looks like gambling and functions like gambling, it should follow gambling rules. States and tribes have the authority to regulate gambling activity within their borders.”
The group specifically named Kalshi, for which Donald Trump Jr. works as a strategic advisor, as a trading exchange platform that reportedly does the vast majority of its volume on sports.
Conservative pushback amid new CFTC approach
GINI acknowledges the current regulatory framework for prediction markets under the federal Commodity Futures Trading Commission (CFTC) but argues that it creates friction with the gambling industry, as it allows prediction markets to offer sports event contracts.
New CFTC Chair Michael Selig, Trump’s eventual chosen nominee for the role, recently emphasized that the CFTC has complete authority over event contracts. Selig and the CFTC consider event contracts to be “swaps,” qualifying them for regulation under the Commodity Exchange Act. Before being confirmed as CFTC chair, Selig previously said he would “defer to the courts” about sports event contracts.
The CFTC is also advocating for federal regulation of sports event contracts in court. Last month, the commission filed an amicus brief in the case involving Crypto.com in the U.S. Court of Appeals for the Ninth Circuit to defend its “jurisdiction” over event contracts.
Former New Jersey Gov. Chris Christie has also joined the fight against sports event contracts, with the former lawmaker believing predictions are “violating the law.” Utah Gov. Spencer Cox has also voiced his opposition to the CFTC’s regulation over sports event contracts.
