The Commodity Futures Trading Commission (CFTC) will hold a crucial roundtable discussion on March 22 to assess the legality and regulation of sports prediction markets. These markets, allowing users to trade on the outcome of sporting events, have sparked intense debate.
Supporters, including Kalshi and Crypto.com, argue they offer valuable financial tools for risk management. However, opponents such as the American Gaming Association (AGA) and Major League Baseball (MLB) warn they could bypass state betting laws and compromise game integrity.
Kalshi Didn’t Bet on Its Own Future—And Nevada Just Called Its Bluffv
The American Gaming Association (AGA) has strongly opposed these markets, calling them “unregulated sports betting” that fail to meet consumer protection standards imposed on licensed sportsbooks. Major League Baseball has also raised concerns, warning of potential manipulation threats.
Over 25 stakeholder comments have been submitted, with many questioning whether these markets should be classified as financial instruments or gambling products. The outcome of the discussion could shape the future of regulated sports betting and alternative investment platforms.
