CFTC chair says prediction markets, sportsbooks ‘separate things’
Summary
CFTC Chair Michael Selig said he will treat prediction markets as financial products and explicitly distinguished them from conventional sportsbooks, arguing most users do not use prediction markets for entertainment. He contrasted sportsbooks' authority to exclude winning bettors with derivatives-style markets where successful traders keep earnings. The article highlights rising activity on platforms like Kalshi and Polymarket, much of it tied to sports, and growing conflict with state gambling regulators. The CFTC has sued to block state attempts to usurp its oversight and Selig said he will continue to defend federal jurisdiction while the American Gaming Association warns these platforms operate outside state and tribal consumer protections.