PRESS RELEASE

HARRISBURG: The Executive Director of the Pennsylvania Gaming Control Board (“PGCB”) has submitted comments to the Commodity Futures Trading Commission (“CFTC”) in advance of that Federal agency publishing proposed regulations on prediction markets.  The comments emphasize the Board’s belief that these markets are sports wagering being offered in violation of state law, and of particular concern, these markets’ refusal to adequately consider – let alone address – issues related to underage gambling.

In his letter presenting public comments to Christopher Kirkpatrick, Secretary of the CFTC, Executive Director Kevin F. O’Toole states:

“By allowing Designated Contract Markets (“DCMs”) to masquerade as unregulated sportsbooks, the Commission (CFTC) has abandoned its historical mandate, ignored its own regulations, and actively endangered a highly vulnerable demographic of young adults.”

O’Toole notes that the CFTC’s own regulations, enacted nearly 15 years ago, prohibit certain prediction markets and those regulations are consistent with the legislative history behind some of the CFTC’s authorizing legislation, including former U.S. Senator Blanche Lincoln who specifically stated in The Congressional Record that the CFTC was in place to stop DCMs from “masquerading as unregulated sportsbooks”.

“Today, the landscape has deteriorated,” O’Toole writes. “One cannot only wager upon the sporting events Senator Lincoln expressly warned, but also on pop-culture and political novelties such as whether a particular person will appear at the Met Gala, who will win Survivor – Season 50, and whether President Trump will utter the phrase ‘Make Iran Great Again’ during the month of April 2026 on Kalshi.” (Recent listed events on Kalshi)

While O’Toole states that the PGCB believes prediction markets offering the ability to purchase a contract on the outcome of a sporting event is illegal sports wagering under Pennsylvania law, he used the bulk of his comments to address the prediction market’s damaging effect on American youth permitting individuals under the age of 21 to participate.

O’Toole states that gambling addiction is real and studies show that it is far more prevalent in younger populations wagering on sports:

“This is not speculation; these comments and statistical findings are grounded in facts and science that can’t be ignored, though some representatives of the prediction market industry would prefer to do just that.”

O’Toole also cites an article from Futurism magazine, “Prediction Markets are Sucking Huge Numbers of Young People into Gambling”, which states:

“Just as nefarious is the fact that prediction markets have perfected a wildly addictive formula specifically effective among young, inexperienced bettors. Part of the appeal is platforms claiming users are betting against other players, rather than the house. The mechanics are deceptively simpler: either the thing happens, or it doesn’t.”

O’Toole concludes his letter by stating even if the CFTC can authorize these markets, it is not necessarily in the best interest of the citizenry and:

 “This is particularly true when a significant proportion of the market participants are at risk and there are no barriers to their entry into the marketplace.”

“Just because the Commission may be able to authorize DCMs offering these markets, doesn’t mean it should.”

A copy of O’Toole’s letter is attached to this release.

In addition to the Board’s concerns in its comments to the CFTC about underage gambling the Pennsylvania Gaming Control Board also is tackling the issue of underage gambling head-on with its awareness campaign What’s Really at Stake which provides information on the consequences of gambling under 21. This includes easy access to underagers of not only prediction market sites, but illegal offshore sites where age limits are not strictly verified.