Attorney General Jennifer Davenport co-led a bipartisan group of 41 attorneys general on May 1 in calling for the Commodity Futures Trading Commission (CFTC) to reaffirm that states have jurisdiction over sports gambling.
The coalition’s action is in response to concerns about federal oversight of prediction markets, which allow users to bet on the outcomes of sporting events. The attorneys general argue that these platforms operate as unregulated sportsbooks and bypass consumer protections required by state law.
“Prediction markets have no right to offer sports gambling in New Jersey in violation of the bedrock rules that other wagering operations follow,” Davenport said. “States have had longstanding authority to oversee all gaming within their borders, which is important to protect residents from gambling addiction and deter insider trading. We call on the CFTC to stop their federal power grab and recognize this authority belongs with the States.”
In a formal comment filed with the CFTC, the attorneys general wrote: “Any distinction between sportsbook bets and prediction-market bets is illusory. On so-called ‘prediction markets,’ users can make all the same wagers they can make at a traditional sportsbook.” They also stated: “The CFTC should recognize the limits of its power and affirm that states have the expertise, experience and tools to regulate sports betting as they have for more than a century.”
Platforms such as Polymarket and Kalshi let users place bets on game winners, point spreads, and player statistics without following state tax or consumer protection laws. The coalition argues these contracts are primarily for entertainment-based gambling rather than financial risk management, placing them outside federal jurisdiction.
The letter from attorneys general also warns about public health risks tied to unregulated sports betting, including increased rates of problem gambling. The group urges the CFTC through rulemaking not to claim jurisdiction over sports-related contracts so regulation remains with individual states.
According to the official website, New Jersey Attorney General Matthew Platkin aims to protect residents’ lives and property, uphold legal standards, deliver statewide enforcement and legal support, extend services throughout all counties and municipalities in New Jersey, influence public safety through law enforcement oversight across the state, hold statewide authority under its statutory mandate for prosecuting offenses and regulating public safety matters, offer services such as crime lab support and victim advocacy initiatives along with consumer protection efforts, while functioning as a state agency focused on justice handling legal representation across New Jersey.
