Tribal Gaming Organizations Oppose Sports Prediction Markets

A group of Native American tribal organizations has spoken out against sports betting prediction markets, pushing the Commodity Futures Trading Commission (CFTC) to ban these contracts. The Indian Gaming Association (IGA), together with other tribal gaming groups, claims these markets put their gaming independence at risk and break current state and federal laws.

Tribal Gaming Leaders Warn Sports Contracts Undermine State and Federal Laws

The debate stems from Kalshi, a trading platform that launched contracts linked to big sports events like the Super Bowl and March Madness. Native American groups claim these offerings look a lot like sports betting and might weaken the exclusive deals they have made with different states, as reported by Covers. In messages sent to the CFTC, the IGA stressed that letting such markets run would step on tribal and state control over gambling rules, a right that US courts have long acknowledged.

In its statement, the IGA claimed that sports contracts would reduce the worth of tribal gaming compacts. These deals let tribes share gaming profits with state governments for exclusive rights to certain gaming operations. The IGA also noted that these contracts go against the Commodity Exchange Act (CEA) and the CFTC’s rules, which ban gaming-related financial tools.

The pushback goes beyond tribal groups. The American Gaming Association (AGA), which speaks for commercial and tribal casino operators, has also raised red flags about the growth of sports prediction markets. The group cautioned that such contracts might create an unfair rivalry for regular sportsbooks and bring in a nationwide betting option that bypasses state-level gambling rules.

Regulatory Uncertainty Looms as Kalshi Expands Sports Contracts Despite Opposition

Congresswoman Dina Titus (D-Nevada) shares these concerns. She claims that prediction markets might create a way around sports betting bans in some states. She points out that US gambling laws fall under state control, with different rules for betting in person and online. She warns that allowing sports prediction contracts could result in uneven regulations and weaken current state gambling laws.

Despite fierce pushback, Kalshi keeps growing its product line. The company butted heads with the CFTC about election-related bets, but a court decision during Biden’s term gave them the green light. Yet, with new CFTC leadership under Trump’s watch, the agency’s take on sports bets remains up in the air.The CFTC plans to hold a roundtable in March to look over public input on the matter. With many tribal groups, industry players, and politicians chiming in, the talk about sports betting markets looks set to mold the future of legal gambling in the US.