Gary Gensler Says Dodd-Frank Does Not Give CFTC Authority Over Sports Betting

Former SEC Chair and former CFTC Chair Gary Gensler said in an amicus brief filed with the U.S. Court of Appeals for the Sixth Circuit that the Dodd-Frank Act does not grant the CFTC authority to regulate sports betting. According to Odaily, his position counters arguments from current CFTC Chair Michael Selig and prediction market platform Kalshi, which contend that sports-related event contracts fall under federal oversight rather than state gambling regulation. Gensler said that if Dodd-Frank had removed states’ authority over sports betting, it would have been widely understood at the time, but he said no such interpretation prevailed. He served as CFTC chair from 2009 to 2014 and oversaw implementation of Dodd-Frank-related rules. The brief relates to Kalshi’s lawsuit involving Ohio. Ohio gambling regulators ordered Kalshi to stop offering sports-related event contracts to state residents, after which Kalshi sued the state. A court has denied Kalshi’s request for a preliminary injunction. The CFTC has supported Kalshi, arguing that Ohio exceeded its authority. Over the past year, the CFTC has sought to expand its regulatory claims over prediction markets and has sued multiple states to establish jurisdiction. The agency also proposed broader prediction market rules this week that generally continue to support sports-related contracts, while proposing stricter limits on contracts tied to events such as terrorist attacks, assassinations, and war.