world-economy

44 States Challenge CFTC Authority Over Sports Prediction Markets

A coalition of 44 state attorneys general challenged the CFTC's regulatory authority over sports-related event contracts on prediction market platforms Monday. The challenge came as the agency's public comment period for its first proposed rule on the sector closed.

Led by Ohio Attorney General Andy Wilson, the states argued the CFTC exceeded its statutory powers and violated constitutional principles with its proposed regulation. The attorneys general called for the commission to restart its rulemaking and exclude sports bets from designated contract markets, asserting state governments hold jurisdiction over gambling.

Florida, Georgia, New Hampshire, Missouri and Texas did not join the letter. The jurisdictional dispute intensified following surging platform volumes last year, particularly during the 2026 FIFA World Cup. The CFTC contends event contracts qualify as swaps under federal oversight, while states maintain sports-related offerings constitute betting subject to state law.