The American Gaming Association (AGA) has released a new report highlighting a public call for regulation on sports event contracts, viewing them as akin to traditional gambling. According to research conducted by YouGov, and published on September 10, 2025, a comprehensive online survey from August 1 to 8 gathered responses from 2,025 registered voters. An overwhelming 80% of participants expressed the belief that these contracts should be regulated similarly to other forms of gambling.
The survey revealed a striking tendency among respondents to classify sports outcome contracts as gambling rather than financial instruments like commodity contracts, with 85% favoring the gambling classification. Additionally, 80% of those surveyed agreed that prediction markets should be regulated in a manner akin to the oversight on online betting. The sentiment extended to 69% of respondents who supported the idea that residents should have a say in whether sports prediction contracts are allowed within their jurisdictions.
Concerns about the integrity of prediction markets were significant, with 70% of participants expressing the belief that these platforms exploit loopholes to offer sports bets without the necessary sportsbook licensing. Despite this, about 16% of respondents were in favor of platforms like Kalshi operating without a sportsbook license. Notably, among active sports bettors, the demand for a license dropped from 84% to 69%.
When it comes to regulatory oversight, a majority of 65% believe that state and tribal gaming regulators should oversee these platforms, whereas 35% favor the Commodity Futures Trading Commission (CFTC) taking on the role. In a statement, AGA President and CEO Bill Miller emphasized the public’s expectation for prediction markets offering sports event contracts to adhere to the same rules and consumer safeguards as other state-regulated sportsbooks.
The debate over regulation was further highlighted at the National Council of Legislators from Gaming States (NCLGS) summer meeting in Louisville, KY, in July. A panel discussion featured Josh Sterling, a lawyer and former CFTC employee, who asserted that the CFTC has primary authority over sports contracts. Sterling’s controversial remark, “People are adults, and they’re allowed to spend their money however they want it, and if they lose their shirt, that’s on them,” sparked significant discourse. The AGA included this sentiment in their report as part of a survey question, which revealed a public divide: 36% of respondents aligned with Sterling’s view, while 64% sided with a statement emphasizing regulatory responsibility to ensure tools for responsible gambling are available.
The timing of this survey is notable as sports contracts face increased scrutiny. Legal battles, such as an ongoing case in California where several tribes are suing Kalshi for allegedly misrepresenting its product as universally legal sports betting, underscore the complexities surrounding the issue. An AGA spokesperson commented to SBC Americas, stating that the marketing tactics employed by prediction market operators “confirm what our research demonstrates and strengthen our belief that gambling should only occur within the U.S.’s existing state and tribal regulatory frameworks.”
In response to the survey findings and ongoing industry challenges, the AGA has introduced a new section on its website dedicated to sports event contracts. This initiative aims to consolidate insights from multiple stakeholders and regulators while highlighting the AGA’s research and stance on the matter. The discussion surrounding sports contracts continues to evolve as various perspectives emerge. Proponents of less stringent regulation argue that adults should have the freedom to engage in prediction markets without excessive oversight, promoting market innovation and consumer choice.
Conversely, advocates for stricter regulation caution against the risks of unregulated betting environments, emphasizing the potential for consumer exploitation and the need for protective measures. This debate reflects broader concerns about gambling’s societal impacts and the balance between personal freedom and regulatory oversight. As the landscape of sports betting and prediction markets continues to develop, stakeholders across the industry, from policymakers to gaming operators, grapple with determining appropriate regulatory frameworks that align with public sentiment and safeguard consumer interests.
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