Regulators move to allow most sports betting, bar war wagers on prediction platforms like Kalshi, Polymarket
Federal regulators are in the process of approving most sports betting activities while prohibiting bets on controversial topics such as war on prediction markets like Kalshi and Polymarket.
The Commodity Futures Trading Commission has released new proposed rules online on Wednesday following a series of insider trading scandals in the prediction markets.
The new regulations, first reported by the Wall Street Journal, are aimed at giving regulators the authority to reject bets that are deemed against public interest or susceptible to manipulation.
While most sports bets will be permitted, wagers on player injuries and specific game details like “first-pitch” gambling will be prohibited.
Similarly, bets related to armed conflict, terrorism, or assassinations will not be allowed under the new regulations.
Wagers on war-related topics have been a sensitive issue due to the reliance on classified information.
The CFTC’s proposals outline how regulators can assess certain contracts on a case-by-case basis and are exploring rules to safeguard retail traders, according to the Journal.
“We fully support the CFTC’s efforts to bring clarity to prediction markets and are dedicated to collaborating on a federal framework that ensures public protection and fosters innovation – we anticipate providing feedback on the Commission’s proposed rule,” said a Polymarket spokesperson to The Post.
In recent months, both federal agencies and prediction platforms have taken measures to combat illicit betting activities.
Kalshi, led by CEO Tarek Mansour, announced that users interested in betting on markets susceptible to foul play will need to disclose their employers through an online form, with the changes set to take effect soon.
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