CFTC and SEC Look to Converge on Prediction Markets
Prediction market platforms, which offer futures contracts on sports and events, may soon face oversight from both the Commodity Futures Trading Commission (“CFTC”) and the U.S. Securities and Exchange Commission (“SEC”). In a joint statement, the agencies expressed interest in clarifying regulations for prediction markets, especially as demand grows and platforms expand into new areas such as sports and non-sports contracts. Certain CFTC-authorized operators have faced challenges from state regulators over their sports contracts. The timing of this announcement coincides with major sports wagering operators entering (or conspicuously circling) the prediction market space through partnerships and innovative offerings. The SEC and CFTC contextualized the collaboration to include broader financial innovations, aiming to harmonize regulations and foster U.S. leadership in emerging markets like crypto and blockchain.
Missouri Sports Betting Applications Due Friday
The deadline for Missouri sports betting license applications is Friday, September 12, with seven operators—including DraftKings, Caesars, ESPN Bet, and Fanatics—already having applied to launch by the state’s December 1 rollout. Temporary licenses will be issued to qualified applicants, allowing them to test systems before the market opens. However, the launch will miss substantial portions of the college football and NFL seasons, delaying tax revenue. Google has approved sports betting ads for Missouri, enabling certified operators to advertise after meeting strict licensing and responsible gambling requirements, presenting a major opportunity in a state with over 6 million residents.
Southeastern States Brace for 2026 Legislative Efforts
Heading into next year's legislative session, efforts to legalize sports betting in South Carolina remain stalled, despite bipartisan legislative support. Opposition to gambling, led by Governor Henry McMaster, centers on concerns about gambling’s impact on the state’s cultural values, creating a significant barrier to progress. Advocates point to other states’ consistent revenue growth after legalization, but South Carolina’s reluctance persists, though experts suggest future legalization is possible as public demand increases. Meanwhile, Georgia has renewed hearings on gambling expansion in advance of 2026, considering casino resorts, sports betting, and horse racing, with discussions focused on potential tax benefits and regulatory safeguards, signaling growing momentum for gambling reform in the heart of SEC country.
Pushback on Computer Assisted Wagering for Horse Racing Expands to Both Coasts
At the recently concluded 2025 Del Mar Summer Meet, win pools were closed to computer-assisted wagering (“CAW") players two minutes before post time, responding to retail bettors' frustrations over dramatic late odds changes caused by large, last-second CAW bets. This policy, already in place at all New York Racing Association tracks, aims to create a fairer wagering experience for all horseplayers. CAW teams, which account for a significant portion of betting handle, often place substantial bets just before races start, leading to sudden shifts in odds that aren't fully visible until after the race begins. The new restriction only affected win bets, leaving exotic wagers like exactas unchanged. Del Mar’s move came after notable late odds changes during the beginning of the Summer Meet, highlighting the impact of CAW on retail players, who already face higher effective takeout rates due to CAW activity.
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