Dina Titus Accuses CFTC of 'Blatant Corruption' Over Prediction Markets

Nevada Rep. Dina Titus has been outspoken about wanting Congress and the government to crack down on prediction markets such as Kalshi and Polymarket, but now, she's accused the Commodity Futures Trading Commission of "blatant corruption." 

"The CFTC’s proposed rule reinforces its failure to respect state and tribal sovereignty. Arguing that sports event contracts are anything but sports betting is pure fiction. Rather than confronting that reality, the agency appears more interested in cozying up to POTUS’s family interests," Titus said on X. 

"Congress must put an end to this blatant corruption and pass my Fair Markets and Sports Integrity Act," she added. 

Titus Questions Ties Between Prediction Markets and Trump's Family

Titus's comments about "cozying up" to Trump's family stem from the fact that his son, Donald Trump Jr., is an adviser for Kalshi and Polymarket. He landed in that role with Polymarket after 1789 Capital, a firm he's a partner in, invested in the company. 

He also got on board with Kalshi shortly before Trump became president again and before Kalshi offered sports event contracts. 

Since then, sports contracts have accounted for about 85% of Kalshi's trading volume, according to Fortune.com. 

Additionally, Trump Media announced plans to launch a prediction market via Truth Social and in partnership with Crypto.com. Last month, Trump defended the CFTC's authority over prediction markets and said, "We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules! Other Countries are after this new form of Financial Market, and we want to remain on top," on Truth Social. 

Also, earlier this month, Titus and other lawmakers requested that the CFTC's inspector general look into the sports event contracts and how the CFTC handled them. 

Gaming Industry Pushes Back Against Sports Contracts

The CFTC proposed rules that would permit sports contracts on prediction markets despite the "gaming" tag. 

Now, the American Gaming Association (AGA) has come out against them. 

“This is a remarkable attempt to redefine what constitutes sports betting,” said AGA CEO Bill Miller. “It makes a mockery of congressional intent while going against a bipartisan coalition of 41 Attorneys General, countless legislators across the country, and the 81% of voters who recognize that the so-called ‘prediction markets’ are backdoor sportsbooks evading state and tribal law.

“The consequences are real. ‘Prediction markets” evasion of state and tribal laws is estimated to have already cost communities across the country more than $1 billion in sports betting tax revenue, hurting critical local projects. This siphoning will intensify as “prediction markets” continue refusing to comply with state and tribal law.”

Someone else has come against sports event contracts: former CFTC Chairman and SEC Chairman Gary Gensler. He argued that Congress never intended for the CFTC and such laws to be involved with regulating sports betting.