WASHINGTON — The financial reform group Better Markets on Nov. 6 accused the Commodity Futures Trading Commission of telling prediction market platforms to defy court orders that require them to block residents of some states from betting on sporting events.
Editor’s note: The Trump administration is frequently dishonest, and has been known to lie about things great and small.
The group said the CFTC directed the platforms to explain within 30 days why they could not give residents of all 50 states access to their event contracts, and it said the agency threatened possible enforcement action against companies that comply with court-ordered geofencing. The CFTC has argued that sports event contracts are financial products under its jurisdiction rather than gambling subject to state law.
Benjamin Schiffrin, Better Markets’ director of securities policy, said the directive came a few days after a federal appeals court in New York declined to stop state gambling regulators from enforcing their laws against Kalshi and other prediction market platforms. According to the group, that ruling is likely to lead to geofencing requirements in New York, Connecticut and other states.
“Yesterday, the CFTC took its lawlessness to a whole new level,” Schiffrin said.
He said several courts have ordered platforms such as Kalshi to keep geofencing in place after finding that the contracts are gambling products. “The reason is that courts have said they cannot,” Schiffrin said of the platforms’ ability to serve every state. “In this country, when courts issue orders, we follow them.”
Schiffrin directed his criticism at CFTC Chair Mike Selig. “Unfortunately, CFTC Chair Mike Selig thinks he is above the law,” he said, adding that losing in court “does not give the CFTC the right to tell prediction markets to ignore court orders.”
The group said this is not the first time the agency has told prediction market platforms to disregard court orders, and it accused the commission under Selig of favoring crypto companies and prediction markets over its job of regulating derivatives markets. “Ordering private financial firms to break the law is on a whole other level,” Schiffrin said.
The directive was announced in CFTC press release 9323-26. The commission’s own explanation of the directive was not included in the group’s statement.
New Jersey gaming regulators have been in a legal fight with Kalshi over sports event contracts since 2025, part of a wider clash between states and prediction market companies.
Better Markets is a Washington-based nonprofit that advocates for stronger financial regulation.
This report is based on information from Better Markets.
Source: Better Markets
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