The US Commodity Futures Trading Commission (CFTC) will talk to chosen tribal organizations on May 29. This careful move aims to engage with groups worried about the prediction markets’ future, particularly those linked to sports events.
Cancelled CFTC Gathering Raises Questions About Oversight of Sports-Based Contracts
This call comes after the CFTC called off a bigger, face-to-face roundtable set for April 30. That meeting was supposed to bring together many interested parties — tribal leaders commercial gambling businesses, scholars, and people from major sports leagues — to talk about how the Commodity Exchange Act (CEA) affects prediction markets.
The CFTC has kept quiet about why it called off the event, but inside sources hint that the agency might have wanted to dodge public criticism as more people speak out against the growth of event-based contracts. Those who oppose these contracts, which are offered by companies such as Kalshi, say they are sports betting in disguise. They worry this could weaken state gambling laws and the rights of Native American tribes.
Tribal chiefs have spoken out about their concerns. They say that the spread of sports event contracts, which might get the green light at the federal level under CFTC rules, puts at risk their power to control gaming in their lands, a right that federal courts have long backed. In official feedback given earlier this year, the California Nations Indian Gaming Association pushed the CFTC to make it clear that these contracts are not allowed under current law. In the same way, the National Tribal Gaming Commissioners & Regulators called Kalshi’s products a “betting plan” that has already taken money away from tribal economies.
CFTC Resumes Dialogue With Tribes Amid Uncertainty Over Broader Stakeholder Engagement
The upcoming conference call, which will include Acting CFTC Chair Caroline Pham, serves as a smaller substitute for the planned roundtable, reported InGame. It is still not clear if the agency intends to set up more meetings with other industry groups, like commercial operators or sports leagues, whose stakes in prediction markets might differ a lot from those of tribal governments.
At the same time, Kalshi continues to face legal challenges with state authorities in Nevada, New Jersey, and Maryland. The platform has won early legal battles in two of these places, where federal judges have suggested that Kalshi has a good shot at winning in court.
Kalshi insists that its operations fall right under the CFTC’s authority, presenting itself as a regulated exchange that follows federal law.As May 29 draws near, the meeting’s results could shape how the CFTC deals with prediction market rules. It might also affect how the agency balances innovation with old US gambling laws.