CFTC Approves Prediction Markets for Sports and Elections in June 10 Proposal

On June 10, the U.S. Commodity Futures Trading Commission issued its first prediction-market rule proposal, signaling it would broadly permit sports event contracts while restricting wagers on manipulable outcomes. Under the proposed rules, sports contracts settling on aggregate outcomes such as final scores and season-long results would be presumptively permissible. Contracts tied to single plays, player injuries, or officiating decisions would face restrictions as too vulnerable to manipulation. The proposal also clarified that election prediction contracts are not considered "gaming" under federal law, strengthening the legal standing of political markets. The rules remain open to a public comment period before finalization.
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