Prediction Markets; Public Interest Determinations - Proposed Rules

Jim Bob Morris, founder of Wanna.com and Wanna Parlay, supports the proposed action to strictly enforce public interest determinations against binary sports event contracts. He argues that allowing these contracts would create a loophole for regulatory arbitrage, undermining state gaming laws, tribal sovereignty, and the competitive standing of law-abiding operators.

Oregon Consumer Justice opposes the proposed rule, arguing that it prioritizes market expansion and profit over necessary consumer protections against the risks of gamified prediction markets. The organization advocates for more robust policies, vigorous enforcement of existing laws, and collaboration with other federal and state agencies to protect retail users from financial harm and addiction.

Darrow AI, Inc. supports the Commission's proposed rules and requests specific clarifications regarding litigation-outcome event contracts. They argue that these contracts should not be considered to involve "Enumerated Activities" or "unlawful activity" because they settle on lawful adjudicative acts rather than the underlying historical conduct.

PinHigh Sports LLC submits a comment in support of the proposed rules regarding prediction markets. The company argues that the rules provide necessary clarity and oversight while protecting the integrity of the markets and the interests of participants.

Joseph Sky Ryu, CEO of Gambit Gamer, Inc., supports the proposed framework for public-interest determinations regarding prediction markets. The company argues that contracts based on objective, aggregate, and publicly verifiable competitive-performance outcomes (both physical and digital) serve the public interest by providing a transparent and regulated alternative to offshore, unregulated markets.

Reifi, Inc. opposes the categorical classification of "Player injury contracts" as contrary to the public interest, arguing that their specific OTC swap products are distinct from retail prediction markets. They argue these swaps are necessary for professional sports teams to hedge business risks and request that the Commission allow these specific contracts to be listed and cleared on registered Swap Execution Facilities.

Quotient, a forecasting and prediction markets research firm, supports the Commission's effort to bar contracts involving war, terrorism, and assassination. They provide market-level evidence and request specific clarifications, such as safe-harbor model language and clearer definitions for diplomatic-status markets, to ensure the rule effectively targets violent acts without unnecessarily impacting other types of geopolitical forecasts.

Steven G. Brubaker, writing as an individual with professional experience in gaming law, supports the proposed rule but argues it contains a structural gap regarding contract design. He urges the Commission to adopt specific disclosure requirements for market maker identities and financial relationships with contract designers to prevent undisclosed "structural holds" in multi-leg combo contracts.