U.S. Tribes Accuse Financial Regulator of Favoring Unlicensed Sports Betting
The tribal industry claims that prediction markets use their sovereignty to extend sports betting outside of gambling regulation.
The Indian Gaming Association (IGA), representing the American tribal gaming industry, has accused financial regulators of favoring prediction markets under the guise of promoting innovation.
The organization argues that the Commodity Futures Trading Commission (CFTC) intends to present its initiative as an opportunity for tribal nations, although it believes that its main beneficiaries will be platforms such as Kalshi.
The new route would allow certain technology providers to direct customers from Facebook, TikTok, Instagram or tribal casino pages to prediction markets in exchange for a commission, without registering as financial intermediaries.
The IGA further warns that suppliers linked to tribal governments would have to waive their sovereign immunity to accept the CFTC's ability to investigate and sanction potential violations.
The association also recalls that a recent pronouncement by the Ninth Circuit has strengthened the application of tribal gaming legislation to contracts on sports results offered in indigenous territories.
"There is nothing in this solution that benefits tribal economies. It will only favor prediction markets and allow unregulated sports betting to thrive in all 50 states," said IGA President David Z. Bean, who is calling for congressional intervention.
