Prediction Markets; Public Interest Determinations - Proposed Rules

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.

The Leech Lake Band of Ojibwe opposes the proposed rule, arguing that it threatens tribal sovereignty, violates the Indian Gaming Regulatory Act (IGRA), and lacks proper consumer protections for youth. They urge the CFTC to maintain existing categorical prohibitions on gaming-related event contracts and to engage in meaningful government-to-government consultation.

Christopher Calaycay, a trader and investor, supports the proposed rule because it uses a contract-by-contract review process rather than blanket bans. He argues that keeping these markets on regulated U.S. exchanges protects consumers and recognizes the value of price discovery and information.

Timothy G. Massad, a former CFTC chairman and current academic at Harvard University, opposes the proposed rules, arguing that the CFTC is overstepping its jurisdiction by attempting to regulate sports betting and prediction markets. He contends that the agency is mischaracterizing its mission, misinterpreting statutory definitions of "swaps," and creating an impractical and illusory review process.