States Challenge Federal Prediction Market Plan
Most US states agree the federal government should not control sports prediction markets.
Forty-four US states tell the federal government to keep its hands off sports prediction markets. These states think the Commodity Futures Trading Commission (CFTC) has no business overseeing these markets. They believe prediction markets are just another form of sports betting.
The CFTC wants to create rules for prediction markets. They asked for public comments on their first draft. Many states responded. They say states, not the Feds, should regulate sports betting. Congress agreed with this in the past.
Prediction markets let people bet on future events. This can be anything from who wins an election to what the weather brings. Some claim these markets offer new insights. Others see them as gambling. The states clearly see them as gambling.
This debate decides who controls a growing part of the betting world. It shapes how investors can use these markets. It also affects how states make money from gambling. The outcome will set new rules for a new kind of betting.
Source: CNBC
