CFTC Warns Prediction Markets to Drop American-Style Gambling Odds

TLDR

• The CFTC warned prediction market platforms to stop using American-style moneyline betting odds
• The regulator told platforms to avoid “deceptive” practices when listing, advertising or soliciting products
• Kalshi said it will comply with the CFTC’s guidance by the letter’s deadline
• New York’s attorney general sued Kalshi for allegedly running an illegal gambling business, seeking up to $36 billion in damages
• A Utah federal court ruled the state can enforce its anti-gambling laws against prediction markets, including Kalshi

The U.S. Commodity Futures Trading Commission sent letters to its regulated prediction market platforms warning them not to use American-style gambling odds. The letters also reminded platforms to follow U.S. laws on derivative trades and avoid deceptive advertising practices.

JUST IN: CFTC warns prediction markets against using American-style gambling odds as the agency asserts its authority over sports event contracts, per Bloomberg.

The regulator said such odds may encourage greater risk-taking and told platforms to avoid deceptive listing,… pic.twitter.com/XGConBPlim

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