CFTC Consults Pro Sports Leagues on Oversight of Sports Prediction Markets
Summary
- The US Commodity Futures Trading Commission (CFTC) said it is consulting with major professional sports leagues as it moves to strengthen oversight of sports-based prediction markets.
- CFTC Commissioner Michael Selic said the agency signed a data-sharing memorandum of understanding (MOU) with Major League Baseball (MLB) and is also in talks with other US professional sports leagues.
- The market is focused on how tighter CFTC oversight and legal disputes with state governments will affect the growing prediction market industry and sports data business.
Forecast Trend Report by Period
The US Commodity Futures Trading Commission is consulting with major professional sports leagues as it steps up oversight of sports-based prediction markets, in the latest sign of a broader regulatory push.
CoinDesk reported on May 12 that CFTC Commissioner Michael Selic said the agency had signed a data-sharing memorandum of understanding with Major League Baseball.
The CFTC is also in related talks with other US professional sports leagues.
"Sports event contracts are not simply gambling. They are federally regulated derivatives," Selic said.
He added that the agency has already filed five or six lawsuits against state governments seeking to restrict the market.
Prediction-market platforms based on sports results and events have been growing in the US.
The market is focused on how tighter CFTC oversight and legal disputes with state governments will affect the expanding prediction-market industry and the sports-data business. The scope of future regulation and the outcome of those legal battles are key variables.
JH Kim
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