NCLGS resolution backs state primacy in prediction market oversight

The National Council of Legislators from Gaming States (NCLGS) has formally endorsed a resolution that would keep control over event contract trading firmly in the hands of individual US jurisdictions. The Executive Committee approved the measure, which argues that prediction markets currently fall outside the regulatory boundaries of the states.

Juliann Barreto, COO of Spectrum Gaming Group and NCLGS Executive Director, highlighted the organization’s role in informing state lawmakers. “NCLGS exists to provide legislators with objective, substantive education on the most important issues facing gaming policy,” she said. She added that prediction markets are one of the most significant emerging issues for state policymakers, and the council has ensured members hear from experts representing all viewpoints.

The resolution explicitly opposes unregulated and unlicensed event contract trading and calls on U.S. lawmakers to clarify the legal status of such markets. It also urges the creation of clear federal guidelines to prevent regulatory arbitrage. In a direct appeal to the Commodity Futures Trading Commission (CFTC), the NCLGS asks the agency to stop treating political and sports-oriented prediction markets as legitimate financial instruments that are exempt from gaming regulation.

Resistance from Tribal Regulators

Separately, Indian Gaming Association (IGA) Chairman David Bean testified before the U.S. House Agriculture Subcommittee on Commodity Markets, Digital Assets and Rural Development on July 21. Bean presented tribal governments’ concerns regarding the growth of sports event prediction markets, framing the testimony as part of a broader pushback by tribal regulators against event contract trading. The hearing was titled “Examining Customer Protections and Market Integrity in Sports Event Prediction Markets.”