44 State Attorneys General Challenge CFTC Authority Over Sports Prediction Markets

Coalition of 44 state AGs argues CFTC lacks statutory power to regulate sports prediction contracts, urging deference to state law and constitutional compliance.

Woofun AI reports that attorneys general from 44 U.S. states submitted a formal letter to the Commodity Futures Trading Commission on Monday, asserting that the agency lacks statutory authority to regulate sports-related event contracts on prediction market platforms. The correspondence contends that the CFTC’s initial proposed rule exceeds its legal mandate, violates constitutional principles, and is arbitrary. The signatories request that the rule be revised to explicitly exclude sports betting from designated contract markets, arguing such activities should remain under state jurisdiction. Officials from Florida, Georgia, New Hampshire, Missouri, and Texas did not endorse the letter.