Rep. Dina Titus Encourages CFTC to Ban Sports Contracts on Prediction Markets

Posted on: February 25, 2025, 05:58h. 

Last updated on: February 26, 2025, 10:11h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.
  • US Rep. Dina Titus wants a ban on prediction markets offering sports-related contracts
  • Kalshi is a leading prediction market running such contracts
  • The Commodity Futures Trading Commission is reviewing the matter

United States Rep. Dina Titus (D-Nevada) has voiced opposition to allowing sports-related contracts on prediction market exchanges that are regulated by the US Commodity Futures Trading Commission (CFTC).

Dina Titus sports contracts prediction markets
Nevada Congresswoman Dina Titus waves to a crowd of supporters. Titus has asked the Commodity Futures Trading Commission to ban controversial wagering contracts on prediction markets involving sports. (Image: Shutterstock)

In March, the CFTC is slated to hold a “series of public roundtables” focused on “evolving trends and innovation.”

One item on the agenda is expected to be whether the CFTC will allow sports betting-like contracts on prediction markets such as Kalshi and Crypto.com. Both sites continue to offer sports contracts despite the CFTC earlier this month requesting that such markets be put on hold as its review plays out.

Ahead of the CFTC talks, Titus, who co-chairs the Congressional Gaming Caucus, submitted her testimony in opposition to sports contracts on wagering exchanges.

“Prediction contracts on sports create a backdoor way to legalize sports betting in states that have not authorized it,” Titus wrote Acting CFTC Chair Caroline Pham.

Each state that legalizes sports betting includes a variety of requirements for consumer protections, responsible gaming, tax revenue, integrity safeguards, and anti-money laundering compliance,” Titus continued. “Authorizing sports contracts nationally via prediction markets would not include any of these important policy considerations.”

Titus is the longest-serving member of Nevada’s current congressional delegation. She has represented Nevada’s 1st District since January 2013. She represented the 3rd District from January 2009 until January 2011 when she was defeated by Republican Joe Heck.

Kalshi Targeted

Titus’ CFTC remarks were most focused on Kalshi, the peer-to-peer wagering exchange that allows bettors to risk money on everything from tomorrow’s high temperature in New York City to whether US Health Secretary Robert F. Kennedy Jr. will ban seed oils this year. The NYC-based exchange that facilitates derivatives also has an array of markets involving sports.

For example, Kalshi has live markets on which golfer will win this year’s four majors — the Masters, US Open, PGA, and Open Championship. That means someone in Alabama, Utah, California, Hawaii, Georgia, South Carolina, and any other state where sports betting remains prohibited can make a $100 wager on Scottie Scheffler winning his third green jacket in April (the bet as of now would net $489).

Titus contends that these markets aren’t financial instruments that the CFTC was designed to regulate. She argues they are instead gambling businesses and should be treated as such.

On Kalshi’s own Twitter [X] page, their description states, ‘Bet on everything: politics, sports, entertainment, crypto, weather, and so much more.’ Kalshi explicitly stated … underneath a post detailing the AFC Championship game, ‘View live odds and bet in all 50 states.'”

Kalshi and its competitors counter that they offer tradable commodities and financial products that differ from what a sportsbook offers bettors.

SCOTUS Ruling Gave States Sports Betting Rights

The landmark May 2018 decision from the US Supreme Court determined that the federal government cannot force some states to not engage in a certain industry while allowing another to do so. The high court said the Professional and Amateur Sports Protection Act (PASPA) of 1992 that allowed Nevada to regulate sports betting while requiring most others to sit on the sidelines violated anti-commandeering interpretations of the Constitution.

The outcome resulted in states being allowed to decide if sports betting is legal. To date, 39 states and Washington, DC, have put laws on their books to govern betting on sports.