CFTC proposes framework favoring sports event contracts over gambling

Written by Sam Bourgistaff writerReviewed by Robert Lakinstaff editorWritten by Sam Bourgistaff writerReviewed by Robert Lakinstaff editorCFTC proposes framework favoring sports event contracts over gamblingLatest NewsPublishedJun 10, 2026The proposed rules would preserve election markets and allow many sports-based prediction contracts while limiting bets that could encourage manipulation. The US Commodity Futures Trading Commission (CFTC) has proposed new rules for prediction markets, signaling that sports event contracts are generally not contrary to the public interest even though federal law classifies them as “gaming.”Released on Wednesday, the proposal distinguishes sports event contracts from games of pure chance, saying markets based on final scores and win-loss records can aid price discovery. Contracts tied to player injuries, officiating decisions or other outcomes that could encourage manipulation, however, are unlikely to meet the public interest test.The proposal also clarifies that election contracts are not considered “gaming” under the relevant federal laws. Reuters reported this could further ease regulatory uncertainty for platforms such as Kalshi and Polymarket, which rose to prominence during the 2024 US presidential election as traders increasingly turned to prediction markets to gauge the race’s outcome.The draft rules are open for public comment for 45 days and could help define the future regulatory framework for US prediction markets.Gary Kalbaugh, a partner at Cahill Gordon & Reindel LLP in New York, said the proposal is principles-based rather than a blanket approval, noting that each contract would still be subject to a case-by-case public interest analysis.“‘Gaming’ is defined more broadly than anticipated and sweeps in sports events,” Kalbaugh wrote on Wednesday. “Contracts settling on aggregate outcomes (final scores, win-loss, season stats) are presumptively permissible.”Source: Gary KalbaughRelated: Anchorage backs Treasury’s GE…

CFTC proposes framework favoring sports event contracts over gambling

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