CFTC proposes rules broadly allowing sports event contracts while acknowledging gaming element
The Commodity Futures Trading Commission proposed new rules on Wednesday, June 10, that would broadly permit sports-related event contracts on prediction market platforms while acknowledging that such contracts involve gaming. The proposal establishes presumptions for categories of contracts but would still evaluate each contract individually, drawing a distinction between regulated event contracts and prohibited gambling activities. The rulemaking covers contracts including moneylines and comes as the regulator has been scrutinizing the boundary between permitted event contracts and gaming products. The CFTC is seeking public comments on the proposed amendments.
Kalshi and Polymarket must now re-audit every sports market against the proposed presumptions before the comment period closes. Any contract that fails the individual review could be forced off the platform once final rules take effect.
The sports proposal arrives alongside a companion rulemaking that would restrict war and conflict markets, giving CFTC-registered platforms two simultaneous public-interest tests to navigate as they defend their existing listings.