IGA Urges CFTC To Prohibit Sports Prediction Outcome Markets
North American tribal nations see sports prediction result markets as a threat to their video gaming exclusivity.
The Indian Gaming Association (IGA) is among 10 tribal groups that recently disputed the legality of contract site Kalshi offering sports-betting-like contracts in the U.S. Commodity Futures Trading Commission's (CFTC) roundtable marketplace.
"The IGA strongly advises the CFTC to make it clear that Sports Contracts are prohibited from being noted or made available for clearing or trading," the not-for-profit video gaming group that represents more than 180 people wrote in a letter.
"Trading of Sports Contracts is video gaming, breaks state and federal law, and is contrary to public law for various factors," the letter continues.
"Importantly, enabling Sports Contracts to be noted and traded will hinder the sovereign right of tribes and states to exercise their police power to regulate gaming within their respective areas - an ideal long acknowledged by courts throughout the United States."
The IGA argued that the listing and trading of those contracts would damage the value of tribal video gaming compacts with U.S. states and hurt their sports betting revenue.
"Moreover, they straight breach the Commodity Exchange Act ("CEA"), and the plain language of the CFTC's implementing policies because they involve gaming and break state and federal laws," the IGA specified.
"Any decision that Sports Contracts abide by the CEA would therefore contravene of the plain text of the CEA and its executing guidelines."
Other opponents
The American Gaming Association, a U.S. trade market group, said in remarks to the CFTC that while it hadn't publicly taken a side in the past, it wants to have more discussions about prediction-outcome markets it states injure U.S. video gaming.
"The AGA and our members have really strong issues about the recent self-certification of what are essentially sports wagering futures, which are presently available to retail customers in all 50 states," stated the company that represents commercial and tribal casino operators as well as sports wagering and iGaming companies.
"Our company believe these sports occasions agreements are problematic for a range of public policy factors."
The AGA states the agreements posture "an unjust financial danger to sportsbook operators" in the U.S.'s 40 legal sports wagering jurisdictions. The AGA likewise argues that the agreements present a "nationwide" betting product that weakens state guidelines, and it concurs with the IGA that "the availability of these products also stomps on tribal sovereignty."
Tribal companies that joined the IGA consist of the Arizona Indian Gaming Association; California Nations Indian Gaming Association; Confederate Tribes of Siletz Indians, Elk Valley Rancheria, California; Jamestown S'Klallam Tribe; Oklahoma Indian Gaming Association; Santa Ynez Band of Chumash Indians; Tribal Alliance of Sovereign Indian Nations; Vetnos LLC and Chicken Ranch Rancheria Me-Wuk Indians of California; and Yuhhaviatam of San Manuel Nation.
Adding to the market
The backlash comes a month after Kalshi, which burst onto the scene last November by providing election wagering through its prediction-outcome markets, started offering Super Bowl, March Madness, and other sports options for its trading community.
Kalshi's agreements associating with U.S. sports leagues will operate to name a few federally controlled markets like politics, economics, and culture.
The CFTC opposed Kalshi's outcome markets throughout the 2024 U.S. election, but a federal judge ruled in favor of the site.
That, however, was during President Joe administration. The CFTC has actually gone through leadership changes because President Donald Trump restored office last month.