Better Markets challenges CFTC stance on court-ordered prediction market restrictions
Benjamin Schiffrin, Director of Securities Policy at Better Markets, issued the November 6 statement after the CFTC directed platforms to defy court orders requiring geofencing. Better Markets said several courts have ordered platforms like Kalshi to block state residents from sports event contracts those courts ruled are gambling products.
Better Markets said the CFTC directed prediction-market platforms to disregard court orders requiring geographic restrictions, raising a conflict over access to sports event contracts.
Benjamin Schiffrin, Director of Securities Policy at Better Markets, issued the statement on November 6. The account provided attributes the claims to Better Markets; it does not include the underlying CFTC directive or court orders.
State access and court restrictions
According to Better Markets, several courts have required platforms like Kalshi to prevent residents of certain states from accessing sports event contracts. Those courts determined that the contracts were gambling products, Better Markets said.
Better Markets also said the CFTC gave firms 30 days to explain why they cannot offer service in all 50 states. That request puts nationwide availability alongside court-imposed limits on access.
What it means for prediction markets
- Geographic availability is the immediate issue: The court orders described by Better Markets concern state residents’ access to sports event contracts, rather than an identified restriction on every prediction-market category.
- The 30-day response period is a procedural marker: According to Better Markets, firms must explain barriers to serving all 50 states; the supplied material does not establish what happens after those explanations.
- The underlying documents remain important: Without the directive or court orders, the precise obligations facing platforms—and how the competing requirements may be resolved—cannot be assessed from this account alone.
Sources & attribution
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