Trump administration proposes new rules on prediction markets that would still allow most sports activity
CNN • • business
Key Points:
- The Trump administration, through the Commodity Futures Trading Commission (CFTC), proposed new federal regulations for prediction markets that largely preserve the industry, including most sports-related markets.
- The rules aim to create a regulatory framework allowing the CFTC to restrict sports markets vulnerable to manipulation, such as bets on player injuries, officiating outcomes, and specific baseball events like “first-pitch” contracts.
- The proposal stops short of stricter measures sought by some stakeholders, such as raising the minimum age to 21, banning prop bets on individual athletes, or reinstating Biden-era bans on election betting.
- Prediction markets are currently regulated as financial markets under CFTC oversight, not as gambling, and offer “event contracts” rather than traditional betting odds, which has led to legal disputes with states seeking to prohibit sports bets on these platforms.
- CNN has a partnership with Kalshi and uses its data for coverage but maintains a policy preventing editorial employees from participating in prediction markets.