Nevada Rep. Titus Seeks Federal Probe of CFTC’s Handling of Sports Prediction Markets
Rep. Dina Titus, D-Nev., is intensifying her opposition to sports-event prediction markets, asking the Commodity Futures Trading Commission’s Office of Inspector General to investigate what she describes as the agency’s increasingly aggressive approach toward state regulators.
In a June 1 letter to CFTC Inspector General Christopher Skinner, Titus was joined by Reps. Rosa DeLauro, D-Conn., and Jared Huffman, D-Calif. The lawmakers requested a review of the agency’s legal strategy, regulatory reversals and use of resources as it defends prediction market operators offering sports-event contracts.
Lawmakers question CFTC’s litigation strategy
The lawmakers’ concerns center on the CFTC’s decision to sue multiple states that sought to restrict sports-event contracts offered by federally regulated prediction market platforms.
The agency has filed actions against states, including Wisconsin, New York, Arizona, Connecticut, Illinois, Minnesota and Rhode Island, arguing that Congress granted the CFTC exclusive authority over regulated event contracts. State regulators, meanwhile, contend that many of these products function as sports betting and should be subject to state gaming laws.
Wisconsin emerged as a key battleground after state officials sued Kalshi, Polymarket, Robinhood, Coinbase and Crypto.com, alleging the companies were operating unlawful sports-betting products under the guise of financial instruments. The CFTC responded with its own lawsuit, arguing that state enforcement efforts interfere with federal law.
Titus and her colleagues also questioned whether the agency’s litigation campaign aligns with previous statements from CFTC Chair Michael Selig suggesting that courts should resolve disputes over sports-event contracts.
CFTC’s withdrawn guidnce draws new questions
The letter also highlights the agency’s changing regulatory posture.
In 2024, the CFTC proposed amendments to Regulation 40.11 that would have clarified how the agency evaluates event contracts involving gaming-related activities. In 2025, agency staff issued guidance advising prediction-market operators to exercise caution when offering sports-event contracts while legal disputes remained unresolved.