The National Council of Legislators from Gaming States (NCLGS) made its stance against prediction markets clear at its summer meeting.
The executive committee unanimously approved a resolution asking Congress to clarify that prediction markets are a form of illegal gambling, leaving it up to the states and tribal governments to decide what gaming they wish to regulate.
NCLGS aims to help state legislators understand sound gaming policy while staying neutral on legalization. The biannual conferences routinely include members of the gaming industry, including from companies that have chosen to enter the prediction markets business.
“NCLGS exists to provide legislators with objective, substantive education on the most important issues facing gaming policy,” said Spectrum Gaming COO Juliann Barreto said in Monday’s release. “Prediction markets represent one of the most significant emerging issues confronting state policymakers, and we have ensured that our members hear directly from experts on all sides of the debate.”
NCLGS prediction markets resolution
The resolution, titled “A Resolution Opposing the Expansion of Unregulated Prediction Markets and Urging Federal and State Action to Protect Consumers and Regulated Gaming Markets,” has six actionbles:
- Opposing the expansion of prediction markets that allow wagering outside of state and tribal governments
- Calling on Congress to clarify prediction markets are illegal and that regulatory and licensing issues are up to state and tribal governments
- Urging the Commodity Futures Trading Commission to stop treating sports and political contracts as “legitimate financial instruments exempt from gaming regulation”
- Encouraging member states to examine gaming laws and assert jurisdiction over prediction markets within their borders
- Affirming the sovereign authority of states and tribes to regulate gaming
- Directing NCLGS leadership to communication the resolution to Congress, the CFTC, the National Governors Association and other relevant state and federal bodies
SBA committed to working with NCLGS
The resolution does not exactly fall in line with the business plan of some operators that have supported NCLGS over the years. That includes three of the biggest names in online gaming that have all launched their own predictions products: DraftKings, Fanatics and FanDuel.
Combined with Georgia Rep. Al Williams taking over as NCLGS president after he did not support legalizing sports betting in Georgia this year, things could have been awkward between those companies and NCLGS moving forward.
But the Sports Betting Alliance, the lobbying group for those three as well as bet365 and BetMGM, tells Legal Sports Report that is not the case. Because of its mixed membership, the SBA has not taken a position on prediction markets.
“The Sports Betting Alliance congratulates Georgia State Representative Al Williams on his election to serve as the next president of the National Council of Legislators from Gaming States,” CEO Joe Maloney said. “We look forward to working with Representative Williams and all other leaders of the National Council of Legislators from Gaming States’ leadership team. We’d also like to thank outgoing Delegate Shawn Fluharty for his service as President and the progress advocating for strong legal and regulated frameworks for online sports betting throughout the country.”
