Atlantic City Casinos Seek Federal Ban on Sports Prediction Betting

Atlantic City casinos are urging the U.S. Commodity Futures Trading Commission (CFTC) to prohibit companies like Kalshi and Polymarket from offering sports-related prediction market bets. This request, submitted Monday, aims to address concerns that these markets circumvent state gambling laws.

What Happened

Atlantic City’s casinos have formally requested the U.S. Commodity Futures Trading Commission (CFTC) to prevent prediction market companies, including Kalshi and Polymarket, from accepting wagers on sporting events, especially in states where sports betting is illegal, according to the Press of Atlantic City. The Casino Association of New Jersey (CANJ) submitted comments to the CFTC on Monday. The CFTC is currently assessing how to regulate the expanding market for event-based “contracts.”

The core of the casinos’ argument is that permitting prediction markets to offer sports bets would bypass state gambling regulations and undermine the authority of states to ban or regulate sports betting within their borders. Derek Shaffer, an attorney representing Atlantic City’s nine casinos through the CANJ, stated that a potential CFTC inaction would effectively sanction sports betting across the U.S., overriding the will of state populations, including those in California and Texas, which have chosen to ban sports betting.

Key Details

• The Casino Association of New Jersey submitted comments to the U.S. Commodity Futures Trading Commission on Monday, advocating for a federal prohibition on sports betting via prediction markets (Press of Atlantic City).
• New Jersey previously attempted to ban Kalshi from operating within the state, but this effort was rebuffed by a federal court ruling (Press of Atlantic City).
• A 2018 U.S. Supreme Court decision affirmed that states have the authority to ban or regulate sports betting (Press of Atlantic City).
• According to the Press of Atlantic City, Derek Shaffer, an attorney for the CANJ, argued that if the CFTC fails to act, it would essentially establish the agency as a “national gaming czar” without sufficient input or consent from most of the country.

Why It Matters

This initiative by Atlantic City casinos highlights a significant jurisdictional conflict between federal regulatory bodies and state gambling authorities regarding the oversight of event-based prediction markets. The outcome of the CFTC’s deliberations could determine the future landscape of sports-related betting in the United States, potentially impacting state-regulated sports betting markets and their associated revenues. The Casino Association of New Jersey asserts that allowing CFTC-regulated markets to offer sports bets would undermine the sovereign prerogatives of states and Indian Tribes that rely on gaming revenue for public programs.

Originally reported by Press of Atlantic City·Published 29 Jul 2026, 19:45