US attorneys general join forces to keep control of sports prediction markets

[The Buzz]

A bipartisan coalition of 41 state attorneys general is demanding a clear line on who regulates sports‑related prediction markets, insisting that authority should remain with the states rather than federal regulators.

Iowa Attorney General Brenna Bird, announcing the push earlier this week, said state regulators and legislatures are best placed to safeguard consumers from gambling‑related harm while maintaining effective oversight of these products.

From the press release:

"States have the right to govern their own gaming industry; historically, they’ve been successful at regulating gambling within their borders,” said Attorney General Bird. “Here in Iowa, our legislature makes the laws, and the Iowa Racing and Gaming Commission enforces the laws, including the payment of any taxes required. These companies are trying to get around those state regulations and taxes. Several courts have agreed with the request of this coalition already, that sport-related prediction-market companies should be subject to an individual state’s gambling rules.”

The coalition filed a formal comment with the Commodity Futures Trading Commission (CFTC), arguing that prediction markets – platforms where users trade contracts on the outcome of future events – have effectively become unregulated sportsbooks. The platforms, including Polymarket and Kalshi, allow users to place wagers on game winners, point spreads and player statistics, bypassing the consumer protections and tax requirements mandated by state gambling laws.

Read more here: https://www.gpwa.org/article/us-atto...markets-263353