Tribal gaming groups urge CFTC to block sports futures trading

A coalition of tribal gaming organizations has called on the U.S. Commodity Futures Trading Commission (CFTC) to reject sports event contracts, arguing they are an illegal attempt to bypass state gambling laws.

At least 10 tribal gaming associations, including the Arizona Indian Gaming Association, the California Nations Indian Gaming Association, and the Indian Gaming Association, submitted comments urging regulators to prohibit such contracts, which they say should fall under state gaming laws rather than federal financial regulations.

“The IGA strongly urges the CFTC to make it clear that sports contracts are prohibited from being listed or made available for clearing or trading,” the group said in a statement. “Trading of sports contracts is gaming, violates state and federal law, and is contrary to public policy.”

Financial technology firms Kalshi and Crypto.com have continued to offer binary contracts on sports events across all 50 states under CFTC oversight. Unlike traditional sportsbooks, these platforms argue they are not offering gambling products, a claim disputed by industry stakeholders.

The CFTC is currently reviewing the issue as part of a 45-day public comment period, followed by an in-person roundtable in Washington, D.C., next month. A decision on the regulatory framework could have significant implications for both financial markets and the gaming industry.

Tribal groups contend that sports event futures should be subject to the same regulatory scrutiny as sportsbooks like FanDuel and DraftKings. “Allowing sports contracts to be listed and traded will interfere with the sovereign right of tribes and states to regulate gaming within their respective territories—a right long recognized by courts throughout the United States,” the IGA said.

The debate over sports futures trading has drawn broader industry pushback. GeoComply, a leading geolocation service provider for state-regulated sportsbooks, has urged the CFTC to establish “a clear distinction between federally regulated financial products and state-regulated betting products.” 

The company, which relies on geolocation enforcement for its business model, could face disruptions if sports futures trading is permitted under federal oversight.

With indications that the CFTC may take a permissive stance, legal challenges could follow. The involvement of Kalshi board member Brian Quintenz, a Trump-appointed CFTC commissioner, has raised concerns about industry influence over the regulatory process. Meanwhile, President Donald Trump’s son, Donald Trump Jr., serves as an advisor to Kalshi, adding a political dimension to the debate.