Arabic version: 44 ولاية تطعن في سلطة هيئة تداول السلع الآجلة على العقود الرياضية

According to Cnbc, a coalition of 44 state attorneys general told the Commodity Futures Trading Commission in a Monday letter that the agency lacks authority to regulate sports-related event contracts on prediction-market platforms. The letter arrived as the public comment period for the CFTC’s first proposed rule on prediction-market regulation ended Monday evening.

The states argued that the proposal exceeds the commission’s statutory powers, conflicts with the Constitution and would be arbitrary and capricious in its current form. Led by Ohio Attorney General Andy Wilson, the coalition urged the CFTC to restart its rulemaking and clarify that sports bets and gambling cannot trade on designated contract markets and instead fall under state law. Attorneys general from Florida, Georgia, New Hampshire, Missouri and Texas did not sign.

The dispute follows a sharp rise in prediction-market volumes last year, driven largely by sports-related contracts. The 2026 FIFA World Cup pushed platform volumes to new heights. The CFTC and prediction-market platforms contend that event contracts are swaps, a type of derivative regulated by the commission, while states say sports-related contracts resemble sports betting and belong within state jurisdiction.

The CFTC released a first draft of its proposed rule in June, focusing heavily on sports offerings and outlining contracts that could be prohibited. It also proposed a definition of “gaming.” CME Group objected, saying the definition treats the sport itself as gaming rather than financial wagering on it and could suggest federal preemption of state sports regulation. The CFTC is in litigation with nine states to defend what it views as exclusive jurisdiction. Court rulings have differed: a Michigan judge blocked Kalshi from offering sports bets in late June, while a federal judge in Minnesota temporarily blocked a statewide prediction-market ban from taking effect Saturday.