TLDR The CFTC warned prediction markets to stop using plus and minus betting odds copied from sportsbooks Contracts must show pricing in nominal or percentage terms instead The regulator says the odds format could count as a manipulative or deceptive practice Exchanges must confirm they got the letter by August 31 Kalshi says it will follow the new guidance by the deadline
The Commodity Futures Trading Commission sent a warning letter to prediction market operators this week. The letter tells them to stop using American-style gambling odds when listing their contracts.
This means no more plus and minus signs followed by numbers. That format is common on sports betting apps, but the CFTC says it does not belong on regulated derivatives platforms.
Instead, the agency wants contracts shown in nominal or percentage terms. These formats are meant to reflect actual market pricing rather than betting-style numbers.
The letter was posted on Friday. It reminded firms that they must follow U.S. derivatives laws when advertising or offering trades to customers.
Officials pointed to research in a footnote showing that American-style odds can push people toward riskier bets. That research helped shape the agency’s decision to act.
The CFTC did not hold back on the legal stakes either. It said displaying misleading pricing “risks violating federal law prohibiting the use of manipulative devices.”
Kalshi Responds to the Warning
The letter set a deadline of August 31. Introducing brokers, futures commission merchants, and designated contract markets must confirm they received it by that date.
Kalshi said it plans to meet that deadline without pushback. A company spokesperson told the Boston Herald that Kalshi follows CFTC guidance and will comply with the letter on time.
The company did not offer further comment beyond confirming its plan to follow the rule. Other