Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Regulatory topic
No spam. Unsubscribe anytime.
Committee hears warning about prediction markets and pending Calshi litigation
Summary
The Sports Wagering Council told senators it is in active litigation against prediction market operator Calshi and warned that designated contract markets under CFTC rules differ from state-regulated sportsbooks in age limits, consumer protections and tax/reporting obligations.
Mary Beth Thomas told the committee the council has pursued enforcement against illegal operators and is in active litigation with Calshi, a large prediction-market operator, over whether those platforms fall under state wagering rules.
"We're in active litigation with the largest prediction market, Calshi, in the United States District Court for the Bridal District of Tennessee after serving Calshi and 2 other, prediction market operators with cease and desist letters," Thomas said. She explained that prediction markets operate under Commodity Futures Trading Commission rules as designated contract markets and typically do not have the same identity or age-verification practices as state sportsbooks.
Thomas and members raised concerns that prediction markets may not collect taxes or fees comparable to state-regulated sportsbooks and that the platforms have expanded offerings (including political and other nontraditional markets) that state law does not contemplate. She said the council has seen some year-over-year dips in in-state betting volume and that litigation outcomes could materially affect projections and competitive dynamics.
