CFTC warns prediction markets to drop sports betting odds format

On August 7, the U.S. Commodity Futures Trading Commission (CFTC) sent a notice to regulated prediction‑market platforms requiring them to stop using American‑style moneyline odds, which display payouts with plus or minus signs. The agency said this format can mislead participants into treating derivative contracts as gambling bets and must be replaced with pricing expressed in nominal or percentage terms. Platforms have until August 31 to confirm receipt of the warning.

CFTC Chairman Michael Selig, who has led the commission since December 2025, reiterated the agency’s broader stance in an Economist column, arguing that the United States should prioritize financial innovation over adopting foreign regulatory models. He highlighted the importance of crypto assets and prediction markets, naming platforms such as Kalshi and Polymarket, and stressed that U.S. regulators must foster responsible innovation to maintain the country’s leadership in the roughly $1.2 trillion global derivatives market.