Examining Customer Protections and Market Integrity in Sports Event Prediction Markets

The House Committee on Agriculture held a hearing on July 22, 2026, to examine customer protections and market integrity in sports event prediction markets, focusing on the regulatory challenges posed by the rapid growth of these markets. Witnesses, including former CFTC officials, industry representatives, and legal experts, discussed the Commodity Futures Trading Commission's (CFTC) jurisdiction over event contracts, the adequacy of current self-certification processes for new contracts, and the need for enhanced resources and staffing at the CFTC to effectively oversee these markets. The hearing highlighted concerns about the overlap between prediction markets and sports betting, the impact on tribal and state gaming sovereignty, consumer protection gaps—especially regarding youth access and responsible gaming—and the potential for market manipulation and insider trading. Several witnesses emphasized the importance of maintaining a principles-based regulatory framework while calling for clearer legislative guidance to resolve jurisdictional conflicts and ensure market integrity. The committee acknowledged ongoing litigation involving state courts and the CFTC, underscoring the need for congressional action to clarify regulatory authority and provide the CFTC with adequate funding and staffing to fulfill its mandate.