The American Gaming Association (AGA) and the Indian Gaming Association (IGA) have published a joint letter calling on Congress to take urgent action against prediction market platforms that offer sports contracts:
The letter claims that this activity is effectively identical to sports betting, but is being offered nationwide without tribal or state approval. They criticized the CFTC’s regulatory inaction after the platforms introduced more betting-related products in 2025, including parlays and college transfer markets.
The AGA and IGA believe that continuing to allow these companies to operate undermines tribal sovereignty and state authority. They also think these platforms violate several federal laws, including the Wire Act, Indian Gaming Regulatory Act, and the Commodity Exchange Act. Some of the major issues relate to consumer protections, like age limits, responsible gambling controls, and licensing. The platforms deprive tribes and states of hundreds of millions of dollars in tax revenue.
Another cause of concern for the two parties is the non-sports contracts that relate to dangerous or sensitive topics, like armed conflicts and the capture of political leaders, which wouldn’t be allowed under state or tribal law.
will follow the direction from Congress if they have a view on the matter
Newly appointed CFTC chairperson, Michael Selig, stated during his confirmation hearing in December that the regulator wouldn’t be taking any action to shut down prediction sites. However, he did say that he will follow the direction from Congress if they have a view on the matter. That’s why the joint letter calls on Congress to quickly “include legislative language in the cryptocurrency market structure legislation” to prohibit gambling through CFTC-licensed platforms.
