WASHINGTON, D.C.— Dominick Freda, Legal Director of Better Markets, issued the following statement on the filing of an amicus brief in support of Tennessee’s authority to regulate Kalshi and other so-called “prediction markets,” which are nothing more than illegal sportsbooks:
“This case presents another opportunity for the federal courts to put the CFTC back in its lane and allow the states to apply their gaming laws to rein in Kalshi and the other illegal sportsbooks masquerading as prediction markets.
“Our brief details how Congress never intended to unleash nationwide gambling and certainly did not envision having the tiny and ill-equipped CFTC adopt the role of nationwide gambling czar. Our brief also highlights the many harms that unregulated gambling inflicts on the public, from the rampant insider trading that continues to make daily headlines to unmitigated problem gambling and even corruption in our elections.
“The CFTC continues to waste its resources and focus on cheerleading these unpoliced, unregulated casinos when it should focus on its real job: regulating the multi-trillion-dollar commodities and derivatives markets. It is more important than ever for the CFTC to regulate and police those markets so that Americans can count on stable prices for the many goods they rely on, from gas to groceries. The CFTC should leave gambling regulation to Tennessee and the other states whose laws and regulations have protected the American public for decades, and must be allowed to continue to do so.”
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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.
