A panel discussion at the recent SBC Summit Americas turned into a in-depth discussion on whether or not prediction markets are actually legal. The panel, moderated by Christopher Gerlacher of PredictionNews plummed the depths of what meets the definition of a legal wagering site, but ultimately came to no firm conclusions except that it’s good to be friends with the son of the President of the United States.
While all the panelists agreed that prediction markets are a major problem, they split on whether or not they are a problem that traditional gaming operators will be able to deal with.
One of the panelists, attorney Daniel Wallach pointed out that the Commodities and Futures Trade Commission (CFTC) had already ruled that certain contracts were not legal. “It’s been on the books for the last 14 years,” he said. “That rule is a per se blanket prohibition against event contracts that involve, relate to or reference the following categories: terrorism, war, illegal behavior, illegal activity (and) gaming,” he said in comments reported on by SBC Americas.
Other panelists pointed to a previous CFTC ruling that prediction market operators could not operate when it’s not in the interest of the public. He suggested that it is in the interest of the public if, for example, tribal gaming operators have a monopoly on the market like they do in Florida.
The other panelists weren’t completely sold on that idea, but they did tend to agree that there is a thumb on the scale in favor of prediction markets on an executive level.
Attorney David Aron summed up the feeling in the room saying, “I know everybody in this room wants in on this new vertical. But doesn’t it bother us at a basic level that this is how it’s happening?” he asked. “Because the son of a president is a strategic advisor to a gaming company. I’ve been coming to SBC [Summits] for years. I’ve never once seen Donald Trump Jr. in this room or any room rendering strategic advice to any company.”