Arizona Gaming Director criticises Commodity Futures Trading Commission
Director of the Arizona Department of Gaming Jackie Johnson has criticized the Commodity Futures Trading Commission for its handling of prediction markets offered by companies such as Kalshi.
In a letter addressed to Commodity Futures Trading Commission Acting Chairperson Caroline Pham on Monday, Johnson said there is little difference between buying a contract on a sports event with Kalshi and placing a bet through a sportsbook.
“Whether a contract will pay its buyer depends on whether that person correctly predicts the result of the event and buys a contract for the correct outcome. This conduct amounts to illegal gambling in Arizona, the promotion of which is a felony,” she stated in the letter.
Director Johnson’s letter went on to point out that when gambling was legalized in the state, in the form of the 2020 Gaming Act, it was never intended for sports contract purchases to be legal.
She also criticized the commodities regulator for failing to enforce one of its rules, which she alleges prevents any registered company from offering any contract that would infringe state rules.
The letter comes less than two weeks after the state issued cease-and-desist notices to three companies: Kalshi, Crypto.com, and Robinhood.
Six other states have issued similar notices, but in three of them, Kalshi and Robinhood have filed lawsuits against the state regulators. None of those cases have yet been decided.
Dig deeper
2025/02/05: Robinhood rolls back Pro Football Championship Market after regulator steps in
2025/01/16: Crypto.com snubs CFTC suspension of Super Bowl futures exchange contracts
2025/04/08: Commodity traders ordered to cease offering sports events contracts in Maryland
2025/03/18: Robinhood launches prediction market in time for March Madness
