Key Concerns Regarding Sports Contracts
1. Violation of Sovereignty : The trading of Sports/Events Contracts under the CFTC infringes upon the sovereign rights of tribes and states to regulate gaming within their territories. This interference also conflicts with the WIRE ACT, IGRA, and the Commodities Exchange Act (CEA). 2. Impact on Gaming Compacts : Sports Contracts undermine the exclusivity of gaming compacts negotiated between tribes and states. Revenue-sharing agreements in these compacts are crucial for funding state and tribal services. Sports Contracts will intercept the necessary gaming revenue for the States and Tribes and threaten the police-power of the States and Tribes to regulate gaming within their jurisdictions. 3. Revenue Loss : The potential trading of Sports Contracts could divert significant revenue from regulated sports betting, which is essential for funding tribal and state government services. For instance, states that have legalized sports betting collected approximately $1.8 billion in tax revenue in fiscal year 2023, which directly supports the gaming regulation in those states. 4. Public Health and Safety : CFTC sanctioned Sports Contracts lack the necessary consumer protection measures to address issues such as gambling addiction and fixing. Further, the CTFC as a federal agency lacks the necessary infrastructure to regulate and enforce violations of State and Tribal gaming policies. 5. Promising Developments : Through the Coordination of Indian Gaming, Commercial Gaming, and State Attorney Generals, we now have a DRAFT Bi-Partisan Bill in the House to amend the Commodities Exchange Act and shut these prediction markets down. There are now over 42 lawsuits by Tribes, States, and consumers, against these prediction markets. Sovereignty and the law are on our Side!
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