Last month, U.S. President Donald Trump said he wasn’t a huge fan of prediction markets. On Tuesday, he forcefully defended his administration’s “exclusive jurisdiction” over the controversial industry, calling it “critically important.”
“It is critically important that the CFTC’s exclusive authority over Prediction Markets is maintained, and that they will thrive,” Trump posted on his Truth Social platform. “Under my leadership, we are setting ‘rules of the road’ that are the Gold Standard for the States.”
“We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules!” Trump wrote. “Other Countries are after this new form of Financial Market, and we want to remain at the top.”
The people Trump named have come out publicly against platforms that offer sports event contracts and expressed concern over issues like insider trading. Christie, the former governor of New Jersey, has been on a media tour railing against sports event contracts, which he says are synonymous with sports betting.
On April 21, James sued Coinbase and Gemini for “illegally running gambling operations” in New York; three days later, the CFTC sued the state of New York, James, and other officials.
Minnesota recently passed a law that goes into effect Aug. 1 and would effectively ban prediction markets in the state—the CFTC responded with a lawsuit against the state, Walz, and other officials the next day. In early April, the CFTC sued Pritzker, Illinois, and other officials for attempting to prohibit prediction-market platforms from offering sports-event contracts (the CFTC has sued six states in total).
A representative for James pointed Front Office Sports to a previous statement the AG made after the CFTC launched its lawsuit: New York’s gambling laws are designed to protect consumers, whether they are placing bets in a prediction market or a casino. When gambling platforms, including prediction markets, violate our laws, we will not hesitate to hold them accountable. We look forward to continuing to defend our laws in court.”
“The most corrupt President in our nation’s history wants to make sure states like ours can’t regulate prediction markets so his family and administration can keep profiting,” Pritzker wrote on social media Tuesday in response to the president’s post.
The president has significant ties to the prediction-market industry. His son Donald Trump Jr. is an investor in Polymarket and a strategic advisor to Kalshi. Truth Social, meanwhile, plans to introduce a prediction-market platform of its own, the timing of which is still unclear.
Trump also expressed support for CFTC chairman Michael Selig, whose agency is in the process of putting together rule proposals to govern the industry that will take into account concerns voiced by pro sports leagues about market manipulation and game integrity.
“Mike Selig, CFTC Chairman, and respected by all, is doing a great job,” Trump wrote. “Thank you Mike!”
Selig told FOS last month that he “did not expect to be overseeing derivatives on sports, but here we are.” He insisted the regulator will carefully and quickly propose new rules that take into account all stakeholders, from sports leagues and prediction-market platforms to Native American tribes concerned about the threat to their sovereignty over gaming in certain areas of the country.
In addition to the issue of sports event contracts, which mirror traditional sports betting but are regulated exclusively by the CFTC instead of state regulators, prediction markets have come under fire over concerns about insider trading. Last month, a U.S. soldier was indicted over allegations he used Polymarket’s international platform to win $400,000 trading on the military operation to capture Venezuelan president Nicolás Maduro.
A representative for Walz did not immediately respond to a request for comment, and a representative for Christie could not be reached.
