Lottery Associations Call for Prediction Markets to Be Treated as Gambling

The North American Association of State and Provincial Lotteries (NASPL) and the World Lottery Association (WLA) urged governments to bring event‑based prediction markets under gambling‑type regulation rather than financial‑derivatives rules. They argue that such markets resemble traditional gambling and should be subject to the same consumer‑protection, responsible‑gaming and sports‑integrity safeguards that apply to licensed lotteries and sportsbooks.

Both groups warned that a regulatory gap could weaken consumer protections, threaten the integrity of sports, and reduce funding for public lottery programs that support education and other services. The NASPL highlighted a recent WLA report titled “Prediction Markets: Unlicensed Betting by Another Name” and called for consistent oversight worldwide. In the United States, testimony before the House Agriculture Committee’s Subcommittee on Commodity Markets, Digital Assets, and Rural Development is expected to address whether these contracts should remain under existing federal oversight or be placed under new gambling regulations.