# Regulation of prediction markets > Live situation record from CLSTR: https://clstr.news/situations/regulation-of-prediction-markets > Updated: 2026-08-13T14:22:38.000Z. Sources: 2. Developments: 2. The regulatory landscape for prediction markets is undergoing significant shifts. Initially, the North American Association of State and Provincial Lotteries (NASPL) and the World Lottery Association (WLA) advocated for governments to classify event-based prediction markets as gambling. They argued these markets should fall under gambling-type regulations to ensure consumer protection, responsible gaming, and sports integrity, rather than being treated as financial derivatives. In response to regulatory pressures, some sweepstakes-based sportsbooks are pivoting toward federally regulated models. Companies such as Fliff, Onyx Odds, and Rebet have filed for registration as Futures Commission Merchants (FCM) with the National Futures Association (NFA) to act as intermediaries for CFTC-regulated exchanges. Additionally, ProphetX has partnered with Pikkit to integrate a Designated Contract Market (DCM) into its platform, allowing users to trade CFTC-regulated derivatives linked to sports outcomes. ## Timeline ### 2026-08-13: Sweepstakes sportsbooks pivot to regulated prediction markets Sweepstakes sportsbooks like Fliff and Onyx Odds are pivoting toward federally regulated prediction markets as US states increase scrutiny on the sweepstakes model. 2 sources. https://clstr.news/cluster/sweepstakes-sportsbooks-pivot-to-regulated-prediction-markets ### 2026-07-23: Lottery Associations Call for Prediction Markets to Be Treated as Gambling NASPL and WLA pressed governments to classify prediction markets as gambling, citing consumer‑protection, sports‑integrity, and funding concerns, with U.S. lawmakers set to weigh new oversight. 2 sources. https://clstr.news/cluster/lottery-associations-call-for-prediction-markets-to-be-treated-as-gambling --- Cite as: Regulation of prediction markets. CLSTR, https://clstr.news/situations/regulation-of-prediction-markets