Former Congressional Staffer Challenges Prediction Markets Regulation

(AsiaGameHub) –   A former congressional staff member who played a role in drafting the Dodd-Frank financial reform law is challenging the legal reasoning used to support sports prediction markets in the United States.

“Nobody Once Mentioned Sports Gambling”

Amanda Fischer, currently policy director and chief operating officer at Better Markets, stated that Congress did not intend for the Commodity Futures Trading Commission (CFTC) to regulate sports-related event contracts when it passed the comprehensive Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010.

Speaking during a recent webcast hosted by the Indian Gaming Association, Fischer emphasized that discussions around the law never included federal oversight of sports wagering products. She recalled being present as a staffer during the drafting process, attending numerous meetings and congressional hearings, and noted that the topic of sports gambling was never brought up within the regulatory framework.

“I was around for the Dodd-Frank Act in 2010 as a staffer and sat in constant meetings and congressional hearings, and nobody once mentioned sports gambling in the oversight framework,” Fischer said. “If that was the intent of Congress, it would have been discussed.”

Prediction market operators such as Kalshi and Polymarket have asserted that the CFTC holds jurisdiction over sports event contracts, prompting legal challenges from states and opposition from tribal gaming groups and major figures in the gambling industry.

Overstretched and Lacking Resources

Fischer argued that the CFTC is already overwhelmed and lacks sufficient resources to effectively monitor the rapidly growing prediction markets.

“The CFTC at its high-water mark had 600 staffers,” she explained. “They oversee about $500 trillion in financial and commodity derivatives and have probably 150 enforcement staff in total.”

She warned that the agency risks losing sight of its primary duties, particularly following criticism that regulators were too slow to act before the 2008 financial crisis.

Recent controversies surrounding prediction markets have heightened these concerns. Fischer cited reports of traders allegedly profiting from sensitive geopolitical developments, including the reported capture of Venezuelan President Nicolás Maduro and the death of Iranian Supreme Leader Ali Khamenei.

“The Maduro issue raises more questions than answers,” Fischer said, while also criticizing what she described as inadequate enforcement against offshore prediction platforms.

She specifically questioned whether Polymarket complied with a 2022 regulatory settlement requiring stricter controls by blocking U.S. users. Fischer also criticized CFTC Chair Michael Selig, stating that the agency appears to have taken a favorable position toward prediction markets before establishing clear rules or confirming legal authority.