IGA leaders slam CFTC prediction market proposal as threat to tribal sovereignty

Leaders of the Indian Gaming Association (IGA) criticized proposed federal rules that would allow prediction market operators to offer sports event contracts nationwide under the oversight of the Commodity Futures Trading Commission (CFTC), arguing that the move bypasses state and tribal gaming regulators.

The proposed framework, released by the CFTC and backed by the White House, would permit sports-related prediction market offerings under federal regulation. Tribes and states have opposed the model, contending that prediction market operators divert revenue from casinos and reduce state tax collections. Several legal challenges are underway.

During the IGA’s New Normal webinar, IGA Chairman David Bean accused the agency of working alongside prediction market companies.

“I just think it’s the big middle finger to tribes and states,” Bean said. “It’s a continuation of CFTC Chairman (Michael) Selig since he took office. He said he was going to leave it up to the courts, but ever since he got in, he’s definitely working in concert with prediction market operators. I’m disappointed but not surprised. We still have work to do. We’re still pushing that snowball uphill.”

IGA Executive Director Jason Giles said the proposed rules were not unexpected.

“It’s a jam job, and it’s corrupt,” Giles said. “They blew past three or four different requirements with (Office of Management and Budget) complicity. They needed other agencies’ complicity in order to jam this rule through in an extremely short timeline with more than 1,500 comments. You’re telling me that in a matter of two to three weeks they looked over 1,500 comments and made any substantive changes to the rule they already had in their back pocket written by the prediction markets?”

Regulatory process draws scrutiny

Giles argued that the proposal should undergo additional review because of its economic consequences.

According to Giles, the CFTC was required to submit the proposed rule for review regarding its economic impact. He said a determination that the proposal constitutes a major rule would trigger additional consultation and justification requirements.

“Clearly, this is a major rule,” Giles said. “This is affecting billions of dollars. This whole thing tells you they don’t care about being sued. They’re going to violate at least three or four provisions of the Administrative Procedures Act, but they don’t care; they’re already suing up to eight states, plus all the other lawsuits prediction markets are engaged in. It shows you we can’t sit around and take offense. These guys are corrupt to the core, and this kind of rulemaking is what you get when you have government corruption.”

Giles also criticized the federal process behind the proposal.

“What the dear leader wants, the dear leader gets, and you change the rules of the game with very little notice or input; you just have to make the dear leader happy,” Giles said. “That’s what Selig is there for. He knows his role. At some point, we have to decide what type of country we want to live in.”

IGA Conference Chair Victor Rocha said the CFTC’s traditional role centers on commodity markets rather than sports wagering.

Sovereignty concerns raised at tribal summit

Bean recently addressed tribal leaders during the 2026 Tribal Leaders Summit hosted by the University of Arizona Native American Advancement & Tribal Engagement program in Tucson.

Speaking to tribal leaders, regulators, elected officials, educators, students and community advocates, Bean described tribal gaming as an extension of tribal self-governance.

“Tribal gaming is not simply an industry. It is an exercise of sovereignty,” Bean told the group. “For nearly four decades, tribal nations have built one of the most highly regulated and successful governmental gaming systems in the world. Any effort that seeks to bypass or undermine that framework is a challenge not only to tribal gaming, but to tribal sovereignty itself.”

Bean said all tribes, including those without gaming operations, should pay attention to the issue because it involves tribal authority beyond gaming activities.

“This issue extends beyond gaming. It’s about defending the authority of tribes to govern their own affairs and ensuring that federal agencies respect the frameworks that Congress and tribal nations have worked together to establish. When one tribe’s sovereignty is challenged, all tribes should take notice.”

Focus turns to Congress and the courts

Bean said some tribal leaders have begun viewing prediction markets as “illegal online sports betting.” He added that attention is shifting toward the proposed Clarity Act, cryptocurrency legislation pending in Congress that opponents view as creating a pathway for prediction market expansion.

“Our focus and attention are going to shift to the Senate and this Clarity Act bill,” Bean said. “We’re going to let the senators know we don’t have a problem with cryptocurrency. The only problem we have is with the prediction markets utilizing the sports betting and casino gaming space.”

Rocha said the issue has implications for both tribal and state authority.

“What’s happening in Washington, D.C., is a partisan hack” that’s not “good for America and definitely not for tribes and states. This is an erosion of sovereignty – both tribal and state. Now, we can go to Utah and gamble on the steps of the temple on Sunday, while we’re listening to the service, and there’s not a thing they can do about it.”

Giles said the dispute could ultimately reach the US Supreme Court.

“Unless the Supreme Court does a complete 180, everything they said (in the 2018 PASPA decision paving the way for nationwide sports betting regulated by states) about gambling is that it’s within the reserved rights left to the states when they overturned the ban on federal sports betting,” Giles said. “The CFTC doesn’t have an argument. Just throw their rules in the pile of nonsense.”

Bean also questioned whether prediction market operators have sufficient safeguards against problem gambling and underage participation. He said opposition to prediction markets has expanded across gaming stakeholders.