Upcoming Event
Free Newsletter
Colorado urges federal limits on sports prediction markets oversight
ColoradoBiz Staff //May 1, 2026//
Deposit Photos
Deposit Photos
Colorado urges federal limits on sports prediction markets oversight
ColoradoBiz Staff //May 1, 2026//
In Brief:
- Colorado Attorney General Phil Weiser leads bipartisan coalition
- 41 attorneys general urge state regulation of sports markets
- Coalition challenges federal jurisdiction over event contracts
- Colorado directs sports betting revenue to water projects
DENVER — Colorado Attorney General Phil Weiser joined a bipartisan group of 41 attorneys general urging federal regulators to leave oversight of sports-related prediction markets to states.
In a comment filed with the Commodity Futures Trading Commission, the coalition argued that so-called event contracts function like sports betting and should be regulated under state gambling laws, not federal commodities rules.
“The protection of consumers from irresponsible operators who provide the opportunity to place bets on sports is a fundamental part of Colorado’s system of legal sports betting,” Weiser said.
The letter contends that platforms such as Polymarket and Kalshi allow users to wager on game outcomes, point spreads and player statistics without adhering to state requirements for consumer protections and taxes.
“Any distinction between sportsbook bets and prediction-market bets is illusory,” the attorneys general wrote.
The coalition said gambling regulation has long been a state responsibility and warned that expanding federal oversight could create gaps in enforcement. They also cited risks tied to sports gambling, including financial harm and problem gambling.
Colorado voters approved legal sports betting through regulated providers, with a portion of revenue directed to water projects.
The attorneys general asked the CFTC to clarify, through rulemaking, that it does not have jurisdiction over sports-related event contracts, leaving the regulation or prohibition of sports betting to the states.
t
