New Jersey attorney general joins coalition urging federal regulators to defer sports betting oversight to states
TRENTON, N.J. — New Jersey Attorney General Jennifer Davenport on Friday co-led a bipartisan coalition of 41 attorneys general urging federal regulators to reaffirm that states — not the federal government — have authority over sports gambling.
The group filed formal comments with the Commodity Futures Trading Commission, arguing that so-called prediction markets have evolved into unregulated platforms for sports betting and should fall under state oversight.
“Prediction markets have no right to offer sports gambling in New Jersey in violation of the bedrock rules that other wagering operations follow,” Attorney General Davenport said. “States have had longstanding authority to oversee all gaming within their borders, which is important to protect residents from gambling addiction and deter insider trading. We call on the CFTC to stop their federal power grab and recognize this authority belongs with the States.”
Prediction markets, including platforms such as Polymarket and Kalshi, allow users to trade contracts based on the outcomes of future events. According to the coalition, those platforms now offer wagers similar to traditional sportsbooks, including bets on game winners, point spreads and player performance.
“Any distinction between sportsbook bets and prediction-market bets is illusory,” the letter says. “On so-called ‘prediction markets,’ users can make all the same wagers they can make at a traditional sportsbook.”
The attorneys general argue that such activity is effectively sports gambling and should be subject to state laws governing licensing, taxation and consumer protections. They contend the contracts offered on these platforms are used for entertainment rather than financial risk management, placing them outside the CFTC’s jurisdiction.
The coalition also raised concerns about public health and financial risks, noting that millions of Americans are considered problem or pathological gamblers. State oversight, they said, is essential to mitigating those risks.
The comments were submitted in response to a CFTC request for public input on proposed rules governing prediction markets. The coalition urged the commission to clarify through rulemaking that it does not have jurisdiction over sports-related betting contracts.
“The CFTC should recognize the limits of its power and affirm that states have the expertise, experience and tools to regulate sports betting as they have for more than a century,” the letter says.
The coalition includes attorneys general from 40 states and the District of Columbia.
