Attorney General Jennifer Davenport led a bipartisan coalition of 41 attorneys general in urging the Commodity Futures Trading Commission (CFTC) to affirm that states have jurisdiction over sports gambling, according to a May 1 statement.
The coalition submitted a formal comment arguing that prediction markets, which allow users to trade contracts on future events, are functioning as unregulated sportsbooks. The attorneys general say these platforms bypass consumer protections and tax requirements mandated by state laws. “Prediction markets have no right to offer sports gambling in New Jersey in violation of the bedrock rules that other wagering operations follow,” Davenport said. “States have had longstanding authority to oversee all gaming within their borders, which is important to protect residents from gambling addiction and deter insider trading. We call on the CFTC to stop their federal power grab and recognize this authority belongs with the States.”
The letter states, “Any distinction between sportsbook bets and prediction-market bets is illusory. On so-called ‘prediction markets,’ users can make all the same wagers they can make at a traditional sportsbook.” The coalition asserts that contracts traded on these platforms are for entertainment-based gambling rather than financial risk management and therefore fall outside CFTC jurisdiction.
According to the official website, the New Jersey Attorney General Matthew Platkin aims to protect residents’ lives and property, uphold legal standards, and deliver statewide enforcement and legal support. The office extends its services throughout all counties and municipalities in New Jersey according to its official website. It also influences public safety through law enforcement oversight across the state as reported by its official site.
The attorneys general caution that unregulated sports gambling poses risks such as addiction and financial insecurity for millions of Americans who may be vulnerable gamblers. They argue that states are best equipped with expertise gained over more than a century of regulating betting activities: “The CFTC should recognize the limits of its power and affirm that states have the expertise, experience and tools to regulate sports betting as they have for more than a century,” their letter says.
The New Jersey Attorney General’s statutory mandate includes enforcing laws statewide, prosecuting offenses, regulating public safety matters according to its official website, providing legal representation for state agencies, overseeing law enforcement agencies, supporting crime labs, advocating for victims’ rights, protecting consumers as detailed on its official site, and focusing broadly on justice initiatives throughout New Jersey.
