The head of the Commodity Futures Trading Commission (CFTC) met with groups representing tribal nations to discuss the future of prediction markets and their intersection with sports betting.
Key Takeaways
- Tribal leaders said the roundtable does not replace the government-to-government consultation they believe is required.
- The CFTC maintains it is not required to consult directly with tribes.
- Tribal groups argue sports event contracts can function as wagering and directly affect tribal gaming.
CFTC chair Michael S. Selig was joined by leaders of various organizations that represent tribal nation interests for a meeting in Washington, D.C. on Monday.
The discussion, which centered on prediction markets, was moderated by Oklahoma Indian Gaming Association (OIGA) chairman Matthew L. Morgan. The tribal representatives argued that the CFTC’s approach to sports event contracts could undermine tribal gaming interests.
“The CFTC cannot treat sports-event prediction contracts as ordinary financial products when they function as wagering, directly affecting Indian gaming, and potentially eroding the compact-based framework Congress established through IGRA,” the announcement said in summary of the meeting.
CFTC Chair Michael Selig met yesterday with groups representing Native American tribes. In short, their message was that the CFTC "cannot treat sports-event prediction contracts as ordinary financial products when they function as wagering, directly affecting Indian gaming..." pic.twitter.com/w3m3odjSRB
— Geoff Zochodne (@GeoffZochodne) September 15, 2026
The conversation extended beyond the basic regulation of sports event contracts. Topics included recent CFTC rulemakings on prediction markets, tribal concerns about sports, political, and other event contracts, prediction market advertising, and agricultural risk-management tools.
The OIGA also said it expects the CFTC to continue to find itself embattled in litigation until it fixes the regulatory approach to prediction markets, which drew opposition from 44 state attorneys general in a July letter to the CFTC.
“I have to be clear about OIGA’s position on these matters,” Morgan said. “Nothing I said should be taken as inconsistent with or otherwise altering OIGA’s fundamental position on these matters.
“We view the CFTC’s actions as undermining the Indian Gaming Regulatory Act, as allowing illegal Class III gaming to infringe upon the sovereignty of Tribal nations, and as undermining revenue streams that are critical to Tribal government programs and services. It is OIGA’s position, as recently laid out in our comments on the proposed prediction markets rule, that the CFTC’s approach is arbitrary, capricious, and not in accord with law.”
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CFTC faces calls to consult with tribes
Tribal nations have a special connection with the gambling industry through the Indian Gaming Regulatory Act of 1988. The law established a framework for state and federal oversight of tribal gaming and helped tribes build stronger economies.
The CFTC has maintained it is not required to negotiate with tribes since licensed prediction markets do not represent forms of gambling. Tribal entities emphasized their disagreement with this position Monday, saying the CFTC has a duty to “meaningfully consult” with tribal nations.
“Yesterday’s roundtable in no way supersedes or replaces the government-to-government consultation (that) must take place directly with the sovereign Tribal Nations who have been or may be impacted by regulatory actions of the CFTC,” the announcement reads.
The OIGA emphasized it is committed to having meaningful conversations and collaboration with Selig and the CFTC.
It also clarified that meeting with representative organizations was not an alternative to consulting directly with the tribes, which it believes the CFTC is obligated to do.
Debates intensify
The dispute over prediction markets continues to escalate.
In recent days, Crypto.com joined Robinhood and opponent New Jersey Attorney General Jennifer Davenport in calling on the U.S. Supreme Court to settle the legal future of sports event contracts.
In other prediction market news, Pinnacle, a mostly offshore sportsbook known for sharp lines, also said prediction markets are shaping their prices using its odds, highlighting another point of overlap between U.S. sports betting and prediction markets.
