AGA President Claims CFTC Should Not Be in Charge of Gambling, Prediction Markets

Bill Miller, President and CEO of the American Gaming Association (AGA), has recently criticized Michael Selig and the Commodity Futures Trading Commission (CFTC) for the latter’s push for federal agencies to regulate sports betting, gambling, or prediction markets.

Bill Miller Says States Should Be the Ones Regulating Gambling

Miller was a guest on analyst Steve Ruddock’s Straight to the Point podcast, where he expressed confidence in the gambling industry’s chances in court as it continues its efforts to regulate prediction markets. He also argued that sports event contracts have “no economic consequences,” emphasized that the Dodd-Frank Act (which amended the CEA) was not meant to be a “backdoor attempt” to create a federal gambling agency.

He also argued that, according to decades, if not centuries, of federalism, any authority not explicitly granted by the Constitution belongs to the states. Furthermore, he pointed out that, in this context, it’s not only the states but also the sovereign tribal nations that are entitled to these protections, which were embedded in the Constitution from the outset. 

Miller further highlighted that there are decades of court cases supporting this view. He emphasized that, unless the federal government explicitly decides to revoke that authority from the states, it should remain with the states and tribal governments.

Miller Also Criticizes Prediction Markets

Miller’s criticisms of the CFTC come, at least in part, due to the more favorable outlook that the latter has been having towards prediction markets. Miller has been a critic of these markets, saying they should be subject to the same state and tribal regulatory rules as traditional forms of gambling.

The AGA has been actively campaigning against what it views as regulatory loopholes that permit nationwide sports wagering under the federal oversight of the CFTC, rather than through state-licensed sportsbook systems.

According to Miller, prediction market platforms are offering unauthorized nationwide sports betting under the guise of “event contracts.” This is done to intentionally bypass state law and strip states and tribes of their regulatory authority. He asserted that states have already lost an estimated $480 million in tax revenue since the introduction of sports-related event contracts last year. 

He highlighted the increasing number of lawsuits and enforcement actions by state attorneys general and tribal authorities, stating that this is precisely why they are filing lawsuits and taking enforcement action. Just last week, for example, the Nevada Gaming Control Board filed a lawsuit against Kalshi to prohibit the prediction markets provider from offering contracts tied to professional and collegiate sports.

The final determination of what constitutes a sports event contract will likely be made by the US courts. However, with a new bill filed earlier this month by Nevada Rep. Dina Titus, maybe even Congress might step in and ban the products.