44 State Attorneys General Oppose CFTC Regulation of Sports Prediction Markets

Attorneys General from 44 states in the U.S. have jointly sent a letter to the Commodity Futures Trading Commission (CFTC), stating that the agency lacks the authority to regulate contracts related to sports events on prediction market platforms. The letter was sent as the public comment period for the CFTC's first proposed rules on prediction market regulation had ended, which primarily targets sports products traded on exchanges. Led by Ohio Attorney General Andy Wilson, the coalition argues that the proposed rules exceed the CFTC's statutory authority, conflict with the Constitution, and are arbitrary and capricious. They demand that sports betting be governed by state law rather than traded on designated contract markets. Attorneys General from Florida, Georgia, New Hampshire, Missouri, and Texas did not sign the letter. The CFTC released its first draft of prediction market regulation rules in June, focusing on contracts for sporting events and defining "gambling." The CFTC has been in court against several states on the grounds of federal preemption and is currently litigating with nine states.

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