Tennessee Sports Wagering Council Asks CFTC To ‘Not Permit’ Sports Event Contracts
Council makes its feelings known on prediction markets ahead of upcoming roundtable
1 min
The Tennessee Sports Wagering Council has sent the Commodity Futures Trading Commission a letter asking the federal agency to “not permit” the offering of sports event contracts in the Volunteer State.
The letter, signed by Executive Director Mary Beth Thomas, does not carry the force of cease-and-desist letters that state gaming agencies in Nevada, New Jersey, Ohio, Maryland, and Illinois sent to trading platforms including Kalshi and Robinhood. The SWC sent the letter to be included in the CFTC’s scheduled April 30 roundtable on the hot-button subject, which has entered judicial phases in Nevada and New Jersey.
Kalshi won a preliminary injunction and temporary restraining order against the Nevada Gaming Control Board last Tuesday, and the New Jersey Division of Gaming Enforcement must submit its opposition brief in District Court there by Friday.
Details of the SWC arguments
In its two-page letter addressed to CFTC Acting Chair Caroline Pham, the Tennessee Sports Wagering Council cites 13 alleged violations of state laws and regulations that come with offering sporting event contracts. In summing up the first six citations, the state agency notes “a person or entity that accepts a sum of money risked on the outcome of a sporting event without a valid license issued by the SWC violates the Act.”
The second set of citations covers what it calls the “many requirements of its sports betting Licensees in order to protect those who choose to wager in our state” that were enacted by Tennessee legislators as well as regulations set by the SWC.
Those include:
- Individuals under the age of 21 not being permitted to bet in Tennessee
- Lists of persons or categories ineligible to place wagers
- Responsible gambling requirements that include self-exclusion
- Prevents the use of credit cards and cryptocurrency to fund accounts
- Regulations that do not permit kiosks for establishing or accessing accounts
- Laws and regulations that “contain specific anti-money laundering controls”
- Wagering on injuries, penalties, or actions of college athletes as well as in-game prop bets on college teams
The agency says the “CFTC-regulated entities” offering such contracts are not compliant with protections enacted by the Tennessee state legislature.
