Poker News: AGA CEO Slams CFTC Chair Over Prediction Markets

The American Gaming Association (AGA) and the Nevada Gaming Control Board (NGCB) have voiced strong criticisms against the growing prediction market industry. During a meeting of the Economic Club in Las Vegas at Park MGM, AGA CEO Bill Miller had harsh words for Commodity Futures Trading Commission (CFTC) Chairman Michael Selig. Miller called Selig 'a joke' for his belief that the CFTC should have sole regulatory control over prediction markets.

Miller highlighted significant differences between the derivatives markets regulated by the CFTC and the activities of prediction market firms in the sports arena. He pointed out that the CFTC recently filed lawsuits against three states to enforce sports betting laws against prediction market firms. The AGA and state gaming regulators argue that these firms are circumventing sports betting regulations by framing sports bets in a different context.

A study from Eilers & Krejcik Gaming revealed that 69% of sports prediction market betting volume comes from states without legal online sports wagering, with California and Texas accounting for 43% of that total. This data suggests a 'blatant dismissal of voters’ decisions and state laws that chose not to legalize online sports betting,' according to Miller. NGCB Chair Mike Dreitzer also noted a slide in revenue from sports wagering since prediction markets began offering sports event contracts. Dreitzer believes the issue will ultimately be decided by the US Supreme Court.