The Association of Gaming Equipment Manufacturers (AGEM) has submitted formal comments to the US Commodity Futures Trading Commission (CFTC), urging the regulator to withdraw its proposed rule governing prediction markets.

In its submission, AGEM argues that the proposal would conflict with the long-established state, tribal and federal framework that regulates gaming in the United States by effectively transferring oversight of sports wagering and casino gaming to the CFTC. The association contends the agency lacks both the expertise and resources to regulate gaming at a national level.

AGEM also warns that replacing the current prohibition on gaming-related event contracts with a discretionary 10-day review process could allow prediction market operators to introduce sports betting and casino-style products before regulators have an opportunity to intervene. The association argues this would create an uneven playing field for licensed gaming companies that invest heavily in compliance, while weakening consumer protections and state and tribal oversight.

The submission further claims that the CFTC does not have the statutory authority to regulate sports betting and casino gaming under the Commodity Exchange Act, citing recent court decisions that have rejected similar interpretations. AGEM concludes that the proposal would destabilise the existing regulatory system and should be withdrawn.

Read AGEM’s full submission to the CFTC here.

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