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A bipartisan coalition of 44 attorneys general has urged the Commodity Futures Trading Commission to reject a proposed rule on prediction market regulation, saying the agency lacks authority over sports-related event contracts.
Nevada Attorney General Aaron D. Ford announced the comment letter on Tuesday, saying the proposal would intrude on states’ long-standing role in regulating sports betting and other gambling activity within their borders. Ford said he co-led the coalition with attorneys general from Ohio, Kentucky, Maryland, New Jersey, New York, Tennessee, and Utah, with 39 additional states joining.
For West Virginia readers, the source did not report any state-specific policy change or enforcement action tied to West Virginia. The development is broader: a multistate pushback against potential federal involvement in sports event contracts that states view as part of their own gambling oversight.
Ford said the proposed rule would “infringe on states’ historic right to regulate sports betting within their borders” and argued the federal government “must not be allowed to disregard the sovereign powers of the states.”
The release also pointed to recent Nevada enforcement activity involving online prediction markets. In June, Nevada obtained injunctions against Polymarket, Kalshi, and Coinbase, according to the attorney general’s office. It also said Kalshi agreed to implement a third-party geofencing solution to block people in Nevada from entering prohibited contracts on its platform.
Under that agreement, Kalshi must complete the geofencing process by Aug. 12, 2026, or face a $120,000-per-day penalty payable to the Nevada Gaming Control Board. The release also said Crypto.com and Robinhood have voluntarily stopped offering sports-, election-, and entertainment-related event contracts to Nevada residents.
The filing is part of the public comment process for the CFTC’s proposed prediction market rule. A key unresolved question is whether the CFTC will revise or withdraw the proposal after reviewing comments.
For now, the source supports a narrow takeaway for West Virginia: no reported local rule change, but continued national pressure from state officials to keep sports-related event contracts under state gambling authority rather than federal commodities oversight.
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Source: As reported by forth.news.
