Polymarket has announced that it has become the exclusive prediction market partner of Liga MX for the United States territory, with Genius Sports set to supply official data...
CFTC publishes first proposal for prediction market rules
On June 10, the Commodity Futures Trading Commission (CFTC) published its first proposal for establishing a clear framework for prediction market rules as the sector continues facing regulatory criticism.
For sports and gaming markets, the CFTC has offered to create an evaluation process separately for each contract, with regulators first deciding whether the contract is based on a real-world event, and then assessing whether it classifies as a Commodity Exchange Act category.
On the other hand, contracts on terrorism, war, or assassinations would be heavily restricted and could be fully banned if they are found in violation of public interest.
Additionally, the CFTC has outlined a new, clear definition for the term “gaming,” which appears in the 267-page proposal 222 times.
The proposal states:
“The proposed rulemaking defines “gaming” as activity typically engaged in for recreation or to entertain others, governed by rules, with measurable occurrences or outcomes dependent on participants’ luck, skill, or athletic ability during the activity.”
Prior to this, the CFTC argued that gaming was equal to gambling but has now referred to the previous definition as an error.
The Chairman of the CFTC, Michael Selig, added:
“The CFTC will protect the integrity of our regulated markets without standing in the way of responsible innovation. This proposal gives the Commission a durable, transparent framework to identify the contracts Congress directed us to scrutinize while letting legitimate markets move forward.”
As soon as the proposal is published in the Federal Register, stakeholders will get a 45-day public comment period, during which they will be able to respond to the suggested measures.
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