AGEM calls on CFTC to scrap prediction markets rule
2026-07-30
Source: Yogonet
AGEM has asked the CFTC to drop its prediction markets proposal, arguing it would undermine state and tribal gaming oversight, give unregulated operators an unfair advantage, and exceed the agency's legal authority.
The Association of Gaming Equipment Manufacturers (AGEM) has formally requested that the U.S. Commodity Futures Trading Commission (CFTC) abandon its proposed rule covering prediction markets, warning the measure would disrupt the nation's established gaming oversight system. In comments submitted to the regulator, AGEM argued that the proposal would effectively transfer authority over sports betting and casino gaming from state, tribal, and federal bodies to a derivatives regulator ill-suited for the task.
The trade group asserted that the CFTC lacks the necessary expertise and resources to oversee gaming on a national scale, and that the plan would create an uneven playing field for licensed operators. Under the proposed rule, the current blanket prohibition on gaming-related event contracts would be replaced with a discretionary 10-day review process, which AGEM said could allow prediction market platforms to launch sports betting and casino-style products before regulators can intervene, giving them a head start over compliance-heavy licensed firms.
AGEM further contended that the proposal would erode consumer protections and diminish the role of state and tribal gaming regulators. The association also questioned the CFTC's statutory authority under the Commodity Exchange Act to regulate sports betting and casino gaming, pointing to recent court decisions that it said rejected similar expansions of the agency's power. Concluding that the rule would destabilize the existing U.S. gaming regulatory framework, AGEM urged the CFTC to withdraw the proposal entirely.