In a letter addressed to the Senate, gambling groups, such as The American Gaming Association, The National Council on Problem Gambling, and The Indian Gaming Association, among others, expressed their concerns amid the rise of event prediction platforms like Kalshi. Specifically, these groups were concerned about the appointment of Brian Quintenz as the head of the CFTC, and about how he would deal with sports betting in line with prediction markets moving forward.

A powerful coalition of gambling industry stakeholders - including tribal governments, commercial casino operators, and responsible gaming advocates - is calling on the Senate to press Commodity Futures Trading Commission nominee Brian Quintenz for answers about his stance on sports betting via prediction markets.

In a letter, the group urges members of the Senate Committee on Agriculture, Nutrition and Forestry to delay advancing Quintenz's nomination until he commits to reviewing controversial sports contracts currently being offered on CFTC-regulated prediction platforms like Kalshi. Quintenz, a former CFTC commissioner and current Kalshi board member, appeared before the committee for a confirmation hearing on June 10 but has not yet been confirmed.

Gambling interests seek clarity on sports contracts

At the heart of the controversy is Kalshi's expansion into sports-related contracts, which many industry and tribal leaders argue constitute unregulated sports betting. Kalshi recently announced more than $2 billion in trading volume on sports markets - areas traditionally regulated by state-level gaming commissions.

The letter addressed to Committee Chair Senator John Boozman and Ranking Member Senator Amy Klobuchar does not outright oppose Quintenz's confirmation. Instead, it implores the committee to demand clarity: "We respectfully request that the Committee require the nominee to fully address the concerns raised at the hearing and commit to upholding and enforcing applicable CFTC regulations before moving forward with his nomination."

The signees want Quintenz to pledge that, if confirmed, he will launch a formal CFTC review into whether such sports contracts violate existing federal regulations or state gaming laws.

Broad coalition opposes sports event contracts

The letter represents one of the most comprehensive pushbacks to date against prediction markets entering the sports betting space. Signatories include the American Gaming Association, the National Council on Problem Gambling, the Indian Gaming Association, and dozens of tribal and state gaming organizations. Seventeen tribes also signed the letter.

Some of these organizations have been vocal critics of Kalshi and similar platforms, noting that the CFTC's own rules prohibit event contracts relating to "gaming, terrorism, war, or activities unlawful under state or federal law."

From the letter: "The vast majority believe sports event contracts are tantamount to sports wagering and, therefore, constitute gaming... The CFTC has not executed a review of these contracts or taken any action despite existing regulations requiring the agency to prohibit any contracts that fall under the enumerated categories."

Legal and regulatory tensions escalate

Adding urgency to the matter, 34 state attorneys general, along with counterparts from the District of Columbia and the Northern Mariana Islands, recently filed a brief in the Federal Third Circuit Court of Appeals. Their message: the Commodity Exchange Act does not override state authority to regulate gambling.

Supporting briefs were also filed by major gaming associations and tribal groups. Notably, many of the states represented in the legal filing are also home to members of the Senate Agriculture Committee currently weighing Quintenz's nomination.

Despite these developments, Quintenz has offered little assurance that he would crack down on prediction markets. During his confirmation hearing, he sidestepped questions about the CFTC's regulatory obligations, implying that he would rely on his own interpretation of the CEA. "It should be deeply troubling to this Committee that he offered no assurances that the CFTC under his leadership would enforce its own regulations," the letter states.

As the CFTC faces leadership vacancies and Quintenz could soon become its only commissioner, concerns about unchecked regulatory authority are escalating. The coalition insists the Senate must extract a commitment from him to initiate a formal review of these contracts. "The lack of action by the CFTC means prediction platforms will continue to offer these sports contracts without the important regulatory guardrails provided by state and tribal regulated sports betting."