CFTC warns prediction markets to drop American odds format
The CFTC warned prediction market firms to stop using American odds format for event contracts, directing platforms to mark prices in nominal or percentage terms instead. A staff letter said the plus-minus display may mislead users into thinking regulated operators run sportsbooks, potentially violating Rule 180.1 against deceptive practices. The guidance applies to designated contract markets and futures commission merchants including Kalshi, DraftKings Predictions, and FanDuel Predicts. Kalshi said it would comply.
The formatting directive forces prediction market platforms to abandon the plus-minus odds display that sports bettors instantly recognize. For retail user acquisition, that friction matters: converting a DraftKings sportsbook customer becomes harder when event contracts speak a different visual language. Platforms must rebuild their front ends under CFTC review, with Rule 180.1 exposure turning non-compliance into an enforcement trigger rather than a guidance suggestion.
DraftKings Predicts continued displaying American odds as of Friday afternoon, while Kalshi committed to comply. The split response creates a natural experiment: the first platform the CFTC singles out for formal action will set the compliance cost baseline for everyone else. The timing overlaps with active litigation in Connecticut and other states where regulators already argue these contracts are gambling; any confirmed deceptive-practice finding gives state attorneys general fresh material for their own suits.
Extends the CFTC's branding crackdown against gambling-style presentation that already targeted 'risk-free' marketing, now hitting the odds format itself as the agency hardens its line on distinguishing event contracts from sportsbooks.