More than 10 tribal gaming groups have sent letters to the Commodity Futures Trading Commission voicing their concern that sports event contracts violate tribal gaming agreements.
AMERICAN GAMING ASSOCIATION
Protecting
States’ Rights
The legal sports betting industry’ s concerns with sports event contracts
BY CHRIS CYLKE
U
. S. prediction markets have recently increased in popularity, allowing consumers to bet on a wide range of events, including the outcomes of elections, economic trends, and other cultural moments. Now, these prediction markets are seeking to expand their offerings to include betting on the outcomes of sports events, raising serious concerns within the legal sports betting market.
Currently, 38 states and the District of Columbia have launched legal sports betting, following robust legislative sessions to authorize and regulate this type of betting in each state. State-led regulation ensures strict consumer protections, upholds game integrity and promotes responsible gaming education.
Additionally, state-regulated sports betting delivers substantial economic benefits. In 2024 alone, states received more than $ 2.81 billion in sports betting taxes from legal sports betting, supporting critical state programs like education, public safety and infrastructure projects. The potential legalization of sports betting through sports event contracts would undermine these benefits, jeopardizing essential funding for these critical programs.
For states with exclusive tribal gaming, these sports event contracts also threaten tribal communities that rely on sports betting revenues. Recognizing this risk, more than 10 tribal gaming groups have sent letters to the Commodity Futures Trading Commission( CFTC) voicing their concern that sports event contracts violate tribal gaming agreements.
The current legal sports betting market has been built on a transparent, state-led reg- ulatory process that involves the collaboration of more than 5,000 state and tribal regulators nationwide. Allowing prediction markets to bypass these well-established regulations through sports event contracts undermines fair competition and endangers the integrity of the entire legal industry.
More than 10 tribal gaming groups have sent letters to the Commodity Futures Trading Commission voicing their concern that sports event contracts violate tribal gaming agreements.
Given the serious implications of these sports event contracts, the AGA will participate in an upcoming CFTC roundtable to articulate our concerns about allowing these prediction markets to offer wagers on sporting events.
The AGA remains committed to advocating for a regulated, legal sports betting market that upholds state and tribal gaming authority, protects consumers and promotes responsible gaming.
Chris Cylke is senior vice president of government relations for the American Gaming Association.
10 Global Gaming Business APRIL 2025