Rep. Dina Titus did not hold back in criticizing the Commodity Futures Trading Commission‘s approval of sports contracts on prediction markets.
“The [CFTC]’s proposed rule reinforces its failure to respect state and tribal sovereignty,” Titus said on X Thursday afternoon. “Arguing that sports event contracts are anything but sports betting is pure fiction.
“Rather than confronting that reality, the agency appears more interested in cozying up to [President Trump’s] family interests. Congress must put an end to this blatant corruption and pass my Fair Markets and Sports Integrity Act.”
Titus was one of several critics who voiced frustration with the CFTC proposed rules, which permit sports contracts on prediction markets despite defining them as gaming, a category explicitly restricted under the Commodity Exchange Act.
Trumps tied to prediction markets
The President’s son, Donald Trump Jr. serves as an adviser to both Kalshi and Polymarket.
He joined Polymarket after venture capital firm 1789 Capital, where he is a partner, invested in the company. He joined Kalshi shortly before his father took office and before the company launched sports event contracts, which have since accounted for roughly 85% of its trading volume.
Trump Media also announced plans last year to launch a prediction market product through Truth Social in partnership with Crypto.com. President Trump publicly defended the CFTC’s authority over prediction markets last month and blasted opponents of sports event contracts as “SCUM.”
Earlier this month, Titus and several other lawmakers asked the CFTC’s inspector general to review the agency’s handling of sports event contracts.
AGA, Gensler against CFTC proposals
The American Gaming Association, the gambling industry’s largest trade group, also criticized the proposal.
“This is a remarkable attempt to redefine what constitutes sports betting,” said Bill Miller, CEO of the American Gaming Association. “It makes a mockery of congressional intent while going against a bipartisan coalition of 41 Attorneys General, countless legislators across the country, and the 81% of voters who recognize that the so-called ‘prediction markets’ are backdoor sportsbooks evading state and tribal law.
“The consequences are real. ‘Prediction markets” evasion of state and tribal laws is estimated to have already cost communities across the country more than $1 billion in sports betting tax revenue, hurting critical local projects. This siphoning will intensify as “prediction markets” continue refusing to comply with state and tribal law.”
Former CFTC Chairman and SEC Chairman Gary Gensler has also criticized sports event contracts. In an amicus brief and subsequent CNBC interview, Gensler argued Congress never intended for federal commodities laws to be used to regulate sports betting.
