The Commodity Futures Trading Commission (CFTC) is facing a pivotal decision that could undermine years of state-led progress in the regulation of sports betting. Recently, several trading platforms, including Crypto.com, Kalshi and Robinhood, have attempted to introduce “sports event contracts,” which enable users to speculate on the outcomes of sporting events. These platforms argue that these contracts are investment vehicles, not wagers or bets. This is sports betting, and if you don’t believe it, their own advertising presents it quite clearly. The reality is that this effort amounts to a backdoor for national sports betting that threatens state authority, consumer protections and the integrity of the legal sports betting industry.

Over the last seven years, states have diligently worked to legalize and regulate sports betting, implementing stringent rules to protect consumers, ensure fair play, and generate significant tax revenue, nearly $3 billion in 2024. Today, 40 jurisdictions have established regulatory frameworks that provide crucial oversight for sportsbook operators. These laws mandate key protections, including age verification, geolocation services, anti-money laundering measures, and responsible gaming initiatives. Allowing a nationalized........

© Sports Business Journal