CFTC Warns Polymarket, Kalshi Against American-Style Gambling Odds Amid State Scrutiny
The CFTC warned prediction markets against using American-style gambling odds as states increase scrutiny over unlicensed sports betting.Summary
The U.S. Commodity Futures Trading Commission (CFTC) has issued a warning to regulated prediction market entities, advising them to avoid using American-style gambling odds. This regulatory move occurs as various states increase enforcement actions, alleging that these platforms operate unlicensed sports betting businesses. While the CFTC maintains exclusive jurisdiction over derivatives, states like New York and Nevada are actively challenging these platforms through lawsuits and court orders.
In New York, the attorney general is seeking up to $36 billion in damages from Kalshi for allegedly running an illegal gambling business. Meanwhile, Kalshi has filed an emergency motion in Utah to prevent potential civil or criminal charges while its appeal is pending. This legal battle highlights the growing tension between federal regulators and state authorities regarding the legality and regulation of sports prediction markets.
(Source：CoinGape)