TLDR Massachusetts’ top gaming regulator called prediction market sports contracts “sports wagers by another name.” He backed the state attorney general’s lawsuit against Kalshi, which awaits a court ruling. Rep. Alma Adams said the CFTC should not allow a “loophole” around state gambling laws. 71% of Massachusetts residents aged 18 to 25 have bet on sports. All four witnesses agreed that ending college player prop bets would help reduce problem gambling.
Prediction markets came under fire at a congressional hearing Wednesday, as a state gambling regulator told lawmakers the platforms offer illegal sports bets. The hearing focused on the rise of sports gambling on U.S. college campuses.
Jordan Maynard, chairman of the Massachusetts Gaming Commission, testified before the House Subcommittee on Higher Education and Workforce Development. He called sports-event contracts “sports wagers by another name.”
Maynard said these platforms avoid state laws, taxes and problem-gambling rules that licensed sportsbooks must follow. “As it stands, prediction markets are illegally offering sports wagering in Massachusetts,” he said.
He added that the Commodity Futures Trading Commission is not equipped to regulate sports betting to state standards. He said this creates two sets of rules for products that look exactly the same.
Regulator Backs State Case Against Kalshi
Maynard backed a lawsuit filed by Massachusetts Attorney General Andrea Joy Campbell against Kalshi. The case is awaiting a decision from the Massachusetts Supreme Judicial Court.
He also said his agency gets calls asking it to step in on customer disputes with companies it does not regulate. Those firms have not applied for a sports betting license in the state.
Ranking subcommittee member Alma Adams, a North Carolina Democrat, said the CFTC should not be able to use a “loophole” to get around state gambling laws. She said prediction markets call a bet