States push back on federal role in sports betting oversight
Trenton, NJ — A coalition of attorneys general from across the country is urging federal regulators to step back from overseeing sports-related betting markets, arguing that authority should remain with individual states.
New Jersey Attorney General Jennifer Davenport joined 40 other attorneys general in submitting a formal comment to the Commodity Futures Trading Commission regarding prediction markets tied to sports outcomes.
The coalition contends that platforms offering contracts on game results, player statistics, and point spreads function similarly to traditional sportsbooks and should be regulated under existing state gambling laws.
The letter argues that these platforms operate outside state frameworks that include consumer protections, taxation, and oversight requirements.
Attorneys general also raised concerns about public health and financial risks associated with unregulated sports wagering, noting that states have long managed gaming within their jurisdictions.
The request comes in response to a CFTC review of rules governing prediction markets, with states asking the agency to clarify that sports-related wagering falls outside its authority.
Officials from more than 40 states, including New York, California, Pennsylvania, and Texas, joined the effort.
Key Points
- 41 attorneys general urge federal agency to defer to states on sports betting
- Coalition targets prediction market platforms offering sports wagers
- States cite consumer protection and regulatory authority concerns
