Rep. Dina Titus wants U.S. Inspector General Christopher Skinner to put the Commodity Futures Trading Commission (CFTC) under the microscope regarding its regulatory position on prediction markets.
The Nevada Democrat, who is the Co-Chair of the Congressional Gaming Caucus and is frequently outspoken on gaming issues, called on Skinner to begin a formal investigation into the governmental agency and federal derivatives regulator.
“The Commission’s recent actions raise significant concerns regarding statutory compliance, federal/state/tribal balance, and resource allocation,” read Titus’ post on X on Monday.
Should CFTC be allowed to escalate court battles?
In particular, Titus pointed to the fact that the CFTC has taken at least seven blue-state governments to court in recent months, most recently suing Rhode Island in federal court.
The CFTC has also filed lawsuits against:
- Arizona
- Connecticut
- Illinois
- Minnesota
- New York
- Wisconsin
The Congresswoman called that multi-state litigation offensive “a significant escalation in its interpretation of federal authority” and asserted that by directly challenging state enforcement efforts against platforms offering sports contract trading, the agency contradicted prior assurances made by Chair Michael Selig that it would defer to the courts on matters related to sports prediction markets.
Prior to being confirmed, Selig told a Senate committee last fall that he would ensure that the commission would look to the courts for guidance on legal and regulatory matters related to sports contract trading. Instead, since taking over as leader of the CFTC, Selig has led the CFTC into litigation battles across the country, championing the rights of firms such as Kalshi and Polymarket to offer a product that some states say is sports wagering by a different name.
Titus also suggested that the CFTC is improperly allocating its limited resources to court battles, writing that “redirecting limited personnel and legal capacity towards a multi-state litigation effort threatens to undermine the agency’s ability to fulfill its primary mandate.”
Titus asks Inspector General for six-point CFTC report
Ultimately, Titus wants Skinner’s office to investigate the CFTC’s actions related to prediction markets, particularly the sports contracts that she reiterated are “functionally indistinguishable” from traditional sports wagering, which state governments hold the right to regulate in their own jurisdiction.
Titus asked the Inspector General to compile a report addressing six individual points:
- An assessment of the legal and statutory basis for the CFTC’s claim to hold exclusive jurisdiction over sports-related event contracts
- An audit of the decision-making process behind the CFTC’s withdrawal of the 2024 proposed rulemaking and the 2025 staff advisory related to gaming and sports contracts
- An evaluation of how the CFTC’s litigation strategy is or is not consistent with its obligations under the Commodity Exchange Act
- An analysis of how the CFTC’s actions impact state regulatory frameworks, tribal sovereignty, and existing gaming laws
- A review of the consumer protection implications of the nationwide expansion of sports event contracts on federally regulated platforms
- An assessment of the CFTC’s allocation of staff and financial resources towards its litigation activities
The direct call to arms to the Inspector General is Titus’s latest publicized attempt to shackle prediction markets. She has taken other steps in previous months, including introducing the Fair Markets and Sports Integrity Act, legislation intended to prevent platforms from allowing event contract trading on sporting and casino-style events.
