US Tribes Discuss the Dangers of Prediction Markets at UINO Meeting

America’s tribal leaders have once again rejected the divisive prediction markets sector, calling for the government to protect tribal sovereignty from the rapidly growing vertical. Speaking at the United Indian Nations of Oklahoma (UINO) March quarterly meeting, representatives of various tribal organizations reaffirmed that event contracts threaten the very foundations of tribal gaming.

Tribal Operators Are Wary of the Threat of Prediction Markets

The meeting took place in Tulsa and hosted a roundtable led by the Indian Gaming Association. It was attended by IGA’s secretary, Christie Modlin, and the association’s executive director, Jason Giles. Other participants included Jacob Keys (chair of the Iowa Tribe of Oklahoma), Larry Wright Jr., (executive director of the national congress of American Indians), and Jamie Hummingbird (representative of the National Tribal Gaming Regulators and Commissioners).

Participants unanimously agreed that prediction markets are a threat to tribal sovereignty and the broader legal gaming framework.

For context, prediction markets are a form of trading where participants can buy shares in the outcome of an event. While companies offering such product argue that their offerings are not gaming due to their peer-to-peer nature, tribal authorities have firmly stood by their belief that prediction markets are, in fact, gambling.

As companies regulated by the CFTC, however, prediction markets are able to offer their products nationwide, circumventing the state gaming regulations and, by extension, impacting traditional and tribal sportsbooks without following the same rules.

Tribes Stand United on This Matter

IGA’s Giles emphasized that American tribes have, for years, offered responsibly regulated gambling and have created one of the strongest and safest gaming industries. He added that this hard work is now being threatened by the growing prediction markets sector, which seeks to offer a sports betting alternative outside the established regulatory framework.

Giles added that tribes are not the only ones in danger, since prediction markets currently lack the safeguards employed by regulated sportsbooks and expose customers to potential harm.

Participants also discussed Rep. Gabe Vasquez’s proposed amendment to prevent derivative exchanges from offering event contracts tied to sports or gambling, reaffirming their support for the measure. At the same time, Rep. Blake Moore and Rep. Salud Carbajal submitted a separate proposal seeking to prohibit event contracts on sports, politics, and terrorism.

IGA’s Modlin emphasized that tribal organizations across the USA stand together in this fight against the controversial prediction markets sector and support the recent proposals to rein in the event contracts industry.  

Leaders are set to continue the discussions at the upcoming Indian Gaming Tradeshow & Convention in San Diego.