41 state attorneys general urge CFTC to disclaim sports prediction market jurisdiction
Updated
Updated · KOKH FOX25 · May 4
41 state attorneys general urge CFTC to disclaim sports prediction market jurisdiction
15 articles · Updated · KOKH FOX25 · May 4
Led by Oklahoma Attorney General Gentner Drummond, the coalition filed its formal comment on Thursday, saying platforms such as Kalshi and Polymarket should fall under state authority.
The attorneys general argued the contracts mirror sportsbook bets on winners, spreads and player statistics, while evading state consumer protections, gambling laws and tax requirements.
Their filing adds to 1,541 public comments the CFTC is reviewing before any proposed rules on prediction markets, amid wider debate involving leagues, sportsbooks, players unions and the NCAA.
As billions pour into these markets, can new rules protect sports integrity from corruption?
Are these platforms innovative financial tools or just unregulated sportsbooks in disguise?
Who will win the war over prediction markets: federal regulators or state gambling laws?
1,541 Public Submissions Fuel CFTC's 2026 Crackdown on Prediction Markets After Military Insider Trading Case
Overview
In early 2026, a U.S. Army soldier was indicted for insider trading on Polymarket using confidential military information, alongside suspicious bets on a U.S.-Iran ceasefire and Kalshi Inc.'s adjustment of agricultural contract trading hours. These incidents triggered the CFTC's comprehensive review, which gathered over 1,500 public comments and led to proposals for enhanced transparency, contract bans on sensitive events, aligned trading hours, and stronger anti-insider trading safeguards. Sports leagues and state regulators strongly opposed market expansion, demanding strict protections and asserting state authority, fueling legal battles that are headed to the Supreme Court. Meanwhile, platforms are already adapting to new rules, marking a critical turning point for the future regulation and legitimacy of prediction markets.