CFTC Chair: Prediction Markets Are Not Sports Betting

CFTC Chairman Michael Selig told Axios that prediction markets and sports betting are different and shouldn’t be regulated the same. He views prediction markets as financial products, something the commission has tried to make clear in recent months by suing states seeking to bar the companies from operating.

Selig pointed out that in prediction markets, real-time customer sentiment impacts positions on certain events, introducing market dynamics. On platforms like Kalshi and Polymarket, traders compete against each other rather than trying to beat the house.

State gaming regulators argue that offering sports event contracts essentially puts these firms in the sports betting business. American Gaming Association CEO Bill Miller criticized Selig and the prediction market industry, stating that "The head of the CFTC, quite frankly, is a joke."