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The American Gaming Association (AGA) has released a new report based on research from YouGov that indicates a significant portion of the public views sports event contracts as a form of gambling.
The report, published yesterday(Sep 10), draws from an online survey of 2,025 registered voters conducted August 1 to 8. The findings show that 80% of respondents believe these contracts should be regulated similarly to traditional gambling.
When asked whether contracts related to sports outcomes resemble gambling or financial instruments like commodity contracts, a striking 85% of participants leaned towards the gambling classification.
The survey also revealed that 80% of people either strongly or somewhat agree that prediction markets should face regulation similar to online betting. 69% of respondents even agreed that residents should have a choice in deciding whether sports prediction contracts will be allowed within their borders.
Public Believes Loopholes Are Being Exploited
The research reveals that many people have serious doubts about the integrity of prediction markets. A significant 70% of respondents feel these platforms are taking advantage of a loophole, allowing them to offer sports bets while avoiding classification as sportsbooks and the necessary licensing.
However, around 16% of the respondents support the idea of platforms like Kalshi being allowed to operate without a sportsbook license. Interestingly, when focusing on only the views of active sports bettors, the percentage of those insisting on a license dropped from 84% to 69%.
Regarding regulation, the majority, 65%, believe that state and tribal gaming regulators should oversee these platforms, while 35% think the responsibility should fall to the Commodity Futures Trading Commission (CFTC).
“This research has made it clear: Americans know a sports bet when they see one — and they expect prediction markets offering sports event contracts to be held to the same rules and consumer safeguards as every other state-regulated sportsbook,” read a statement attributed to AGA President and CEO Bill Miller.
Public Wants Regulators to Push Responsible Gambling Efforts
The American Gaming Association (AGA) highlighted a lively discussion from the National Council of Legislators from Gaming States (NCLGS) summer meeting in Louisville, KY, this past July.
During a panel, lawyer and former CFTC employee Josh Sterling, now an independent counsel to Kalshi, asserted that the CFTC holds primary authority over sports contracts. His remarks sparked conversations about consumer protections in the gambling sector.
Sterling stated, “People are adults, and they’re allowed to spend their money however they want it, and if they lose their shirt, that’s on them.” This comment was highly controversial, with AGA even quoting it directly in its report as part of a survey question.
The results showed a clear divide in public opinion. More than one-third of respondents, or 36%, felt that Sterling’s view aligned more closely with their own gambling beliefs, while a larger majority of 64% sided with an alternative statement written for the survey: “People are adults, but regulators and companies that offer gambling products have a responsibility to make sure that there are tools available to bettors to help them gamble responsibly.
Sports Contracts Continue to Face Scrutiny
The survey arrives at a time when sports contracts are under intense examination, particularly as legal battles unfold, such as the ongoing case in California, where multiple tribes are suing Kalshi. They argue that the company misrepresents its product as sports betting that is “legal in all 50 states.”
An AGA spokesperson commented to SBC Americas that marketing tactics from prediction market operators only prove the results of their research. They stated that this kind of promotion “confirms what our research demonstrates and underpins our strong belief that if it’s gambling, it must only be permitted under the U.S.’s existing state and tribal regulatory frameworks.”
In response to these concerns, the AGA has launched a new section on its website dedicated to sports event contracts. This page aims to gather insights from various stakeholders and regulators while showcasing the AGA’s own research on the matter.
Source: SBCAmericas
