The Commodity Futures Trading Commission (CFTC) introduced a 267-page proposal on Wednesday that could reshape what prediction markets such as Kalshi and Polymarket are allowed to offer. The proposal targets event contracts deemed contrary to the public interest, including sports-related propositions.
While some markets would remain unaffected, the target restrictions would come on props that are subject to insider trading, manipulation, and could damage the integrity of the sport. Key points that were flagged on the proposal include: Officiating, Injury, and altercation contracts.