- Michael Selig, the new chairman of the Commodity Futures Trading Commission (CFTC), is unlikely to combat sporting events on prediction markets based on previous comments.
- After the CFTC attempted to prohibit prediction market Kalshi from offering contracts on elections, Selig was one of the lawyers that argued in favor of Kalshi.
- Selig also has backed prediction markets on multiple occasions on his Twitter account, but now has a greater influence as CFTC chair.
WASHINGTON – President Trump nominated Michael Selig to be the newest chairman of the CFTC, potentially opening the doors for more regulation towards prediction markets. The Trump administration backs prediction markets, as does Selig, creating an interesting conflict for USA online sportsbooks competing with Kalshi and Polymarket.
The Commodity Futures Trading Commission is responsible for regulating the United States’ derivatives market that includes futures and options on commodities and financial instruments. Now, the CFTC under a new chair expects to consider a wider range of contracts, such as sporting events and political races.
How Does This Impact Online Sportsbooks?
If Selig is ultimately appointed as CFTC chair, he’ll have a tremendous amount of power over regulators as the only commissioner on the board. This could lead to an increased involvement for cases in states with online sportsbooks that are actively in lawsuits with Kalshi concerning their prediction markets. That includes Nevada, New Jersey, Maryland, Massachusetts, and New York.
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The CFTC formerly blocked Kalshi from offering political event contracts for the presidential election and other roles, but Kalshi sued and won in court. Later, Selig served as a lawyer in a case advocating for Kalshi to offer political event contracts in the US.
This also ties to cryptocurrency, as Polymarket and Kalshi accept crypto for their predictions market contracts. Donald Trump Jr. is an advisor for both Kalshi and Polymarket, and prediction markets are now available on Trump’s Truth Social app through a partnership with Crypto.com.
Selig’s position as chair could lead to an increase in sportsbooks that accept crypto, which is currently limited to internationally-licensed sportsbooks. State-regulated sportsbooks will need this venture to compete with crypto prediction markets, especially since they can offer contracts on sporting events.
Zach graduated from Florida State University after majoring in Writing, Editing, and Media with a minor in Communication. He has a passion for sports betting and specializes in DFS for NFL, NBA, and MLB. At the casino, you can find Zach playing blackjack or roulette.
