AGA Raises Concerns Over Unregulated Sports Event Futures Trading

The American Gaming Association (AGA), a trade group devoted to protecting the interests of gambling stakeholders in the United States, has highlighted a recent article published by Sportico. This piece explores the AGA’s efforts to tackle the rise of unregulated sports event futures trading—a development seen as a threat to the regulated gambling industry.

AGA Targets Sports Event Future Contracts

In an article by Dan Bernstein, the trade group emphasizes an AGA memo directed at the Commodity Futures Trading Commission (CFTC). This memo highlights the group’s request to participate in a crucial high-stakes roundtable hosted by the regulator in Washington D.C. this March. The gathering’s purpose is to establish foundational rules for sports event futures trading.

In his communication, AGA’s Senior Vice President of Government Relations, Chris Cylke, shared his perspective:

‘We believe these sports event contracts are problematic for a variety of public policy reasons, which we highlight briefly and would welcome the opportunity to discuss in more detail during the roundtable.’

The AGA has voiced concerns about platforms such as Kalshi and Crypto.com, which offer these markets. These platforms are perceived as an ‘unfair economic threat,’ despite their insistence on being independent from odds-makers, as they do not establish any coefficients themselves.

• Members of the sports betting industry are eager to participate in the meeting to gain insights and direction regarding the future of sports futures trading.
• Some argue that this sector closely resembles sports betting, posing a potential threat.
• The AGA is not alone in questioning these contracts.

The AGA is also advocating for a more stringent regulatory approach toward the social sweepstakes casino sector. This move is in response to accusations that these platforms offer unlicensed forms of gambling.

Tribal Interests at Risk Amid Rising Support for Platforms

Sweepstakes operators have countered, arguing that their industry is grounded in legal and historical precedent, opposing the AGA’s critical stance. Despite this, the trade group remains steadfast in its dual-front campaign. It argues that future sports event contracts undermine the industry, particularly impacting tribal gaming.

Congresswoman Dina Titus has also expressed her opposition in a social media post:

‘It is a backdoor way to allow sports betting in 50 states, ignoring consumer protections, responsible gaming, integrity monitoring, and state tax revenue rules and regulations.’

She has communicated her concerns to the CFTC, opposing the rise of these prediction markets and the products they offer. This opposition emerges even as many voices in the industry express support for the sector.

In addition to Kalshi, executives from Coinbase and Robinhood have asserted that sports event futures are poised to become a permanent fixture in the market landscape.