Oklahoma Attorney General Gentner Drummond is calling on federal regulators to reaffirm that states have primary authority over sports-related prediction markets, arguing the platforms function as unregulated sportsbooks.
“This is unequivocally gambling, which means it belongs under State authority,” Drummond said. “States have long had the right and responsibility to protect their own citizens from the dangers of gambling, and that should continue to hold true whether bets take place on a prediction market or inside a traditional casino.”
Drummond joined 40 other state attorneys general in a formal comment to the Commodity Futures Trading Commission, urging the agency to clarify that sports-related contracts fall outside its jurisdiction. The coalition argues prediction market platforms, including Kalshi and Polymarket, allow users to place wagers similar to traditional sportsbooks without adhering to state-level consumer protections or tax requirements.
In their letter, the attorneys general said users can bet on game outcomes, point spreads and player statistics, calling any distinction between sportsbook wagers and prediction market contracts “illusory.” They contend the contracts are entertainment-based gambling rather than legitimate financial tools, placing them under state oversight.
The coalition also raised concerns about the broader impact of sports gambling, citing risks to public health and financial stability. The attorneys general said states are best positioned to regulate or prohibit gambling activity and protect residents from potential harms.
The group is asking the CFTC to confirm through rulemaking that it does not have jurisdiction over sports-related prediction markets, preserving state authority over the issue.
