Federal Regulators Propose New Rules for Prediction Markets, Leaving Most Sports Betting Intact

The Trump administration released proposed new rules Wednesday that would largely leave prediction markets alone, allowing most sports betting on sites like Kalshi and Polymarket to continue as-is.

The Commodity Futures Trading Commission unveiled the guidelines, which would give federal regulators the ability to rein in specific sports markets considered easy to manipulate, including bets on player injuries and officiating outcomes. The bulk of sports betting, which makes up the majority of trades on those platforms, would remain untouched.

The proposal falls short of what many had pushed for. State regulators, lawmakers, addiction counselors, casino industry lobbyists, and some professional sports leagues had all called for stricter oversight of the growing industry. Their concerns went unaddressed in the new framework.