The debate over sports prediction markets was front and center at a Senate hearing for Trump’s nominee to lead the Commodities and Futures Trading Commission.
The Senate Agriculture Committee questioned Brian Quintenz, on Tuesday over potential conflicts of interest and concerns about undermining state laws and tribal gaming rights. Quintenz’s nomination has drawn sharp opposition from tribal leaders, lawmakers, and gaming industry stakeholders as the CFTC faces mounting pressure to address the legality of sports prediction markets.
Quintenz previously served as CFTC Commissioner from 2017 to 2021 after being nominated and confirmed during the Trump administration.
Quintez, Trump’s ties to Kalshi
Multiple Democratic senators — including Amy Klobuchar, Adam Schiff, and Cory Booker — raised concerns over Quintenz’s financial disclosures, which show his role as a board director for KalshiEx and his work for Andreessen Horowitz’s crypto fund.
“Even if you recuse yourself there will remain a potential appearance of a conflict,” Klobuchar said.
Kalshi also recently hired Donald Trump Jr. as a special advisor, further fueling concerns about Quintenz’s potential conflicts of interest.
“I’m worried you’re going to be in a position where — as chairman — are you going to feel empowered to push back on a company that is being advised by the president’s son?” Booker said.
CFTC faces pressure to act on sports prediction markets
Kalshi brands itself as a federally regulated financial exchange and operates a prediction market platform offering contracts on real-world events. In recent months, Kalshi has aggressively expanded into sports markets, where users can trade on game outcomes and player performances, products that resemble betting with regulated sportsbooks.
Unlike state-regulated sportsbooks, Kalshi operates nationwide with little to no regulatory oversight. That has drawn sharp criticism from state regulators, tribal gaming groups, and major sports leagues, who say the platform is skirting state gambling laws and undermining consumer protections.
Under acting CFTC chair Caroline Pham, the agency has largely refrained from addressing sports prediction markets. In April it abruptly canceled a roundtable to address the issue, without explanation, despite planned participation from leagues and state regulators.
“I’m very concerned that these event contracts, which seem pretty indistinguishable, at least from the consumer point of view, from gaming, violate tribal sovereignty and undermine state and tribal gaming compacts,” Schiff said.
Threat to tribal gaming rights?
Tribal leaders have been among the most vocal opponents of the emerging market, warning that CFTC-regulated sports prediction markets directly threaten their gaming compacts, which grant tribes exclusive rights to operate certain gambling products within their jurisdictions.
Sen. Schiff pressed Quintenz on whether these contracts violate tribal sovereignty. Quintenz replied that he believes the Commodity Exchange Act is “very clear” in permitting event contracts tied to financial outcomes, adding that tribes could seek CFTC approval to offer similar products themselves.
“Nothing in the CEA, that I’m aware of, prohibits or affects the opportunity of tribes to offer those [prediction market products],” Quintenz said.
Congresswoman calls on Senate to reject nomination
Congresswoman Dina Titus (D-NV), who co-chairs the Congressional Gaming Caucus, issued a statement following Tuesday’s hearing urging the Senate to reject Quintenz’s nomination.
“The Senate must reject Brian Quintenz’s nomination,” Titus said. “His testimony illustrates how dangerous his appointment would be, including how he plans to transform this important agency into a rubber stamp for unregulated, illegal sports betting nationwide.” Titus previously petitioned the CFTC to prohibit sports prediction markets altogether.
Next steps for prediction markets
As Kalshi’s offerings have expanded, seven states have issued cease-and-desist orders, accusing the company of offering unlicensed sports betting.
Kalshi has challenged regulators in multiple states, including Nevada, New Jersey, and Maryland, where courts have thus far sided with the company, allowing it to continue operating while litigation proceeds.
The Senate Agriculture Committee is expected to vote on whether to advance Quintez’s nomination to the full Senate in the coming weeks.
