Gensler challenges CFTC claim over sports prediction markets in Ohio case

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Gensler challenges CFTC sports case

Highlights

Gensler's amicus brief to the Sixth Circuit argues the Dodd-Frank Act does not authorize the CFTC to regulate sports wagering contracts in prediction markets.
The legal conflict stems from Kalshi suing Ohio after being ordered to halt sports-betting contracts, with the CFTC supporting Kalshi and proposing broader regulatory authority.
Gensler criticizes the CFTC's push to expand oversight, highlighting the agency's lack of funding, expertise, and sufficient staff to regulate sports betting markets.

Court filing disputes federal oversight

As reported by The Block, Gensler argues in an amicus brief filed Thursday with the U.S. Court of Appeals for the Sixth Circuit that the Dodd-Frank Act does not give the CFTC authority over sports wagering contracts offered through prediction markets.

Gensler, a former chair of both the CFTC and the SEC, says claims that Dodd-Frank preempted state authority over sports betting are unfounded. In the brief, he says that if the law had done so, it would have been a major issue when the legislation was enacted after the 2008 financial crisis, yet he argues that was never part of the debate.

The filing comes in litigation tied to Kalshi, which sued Ohio in October 2025 after the Ohio Casino Control Commission ordered the platform to stop offering sports-related event contracts to residents in the state. A judge later denies Kalshi's request for a preliminary injunction, while the CFTC backs the platform and argues Ohio is exceeding its own authority.

Regulatory conflict expands across states

Gensler's position directly conflicts with current CFTC Chair Michael Selig, who has been pushing a broader interpretation of the agency's mandate over prediction markets. States opposing that view argue the platforms are violating local gaming and gambling laws, especially where sports-related bets are concerned.

Over the past year, the CFTC has looked to strengthen its oversight through proposed rules for prediction markets and has sued several states as part of that effort. This past week, the agency also proposes broader rulemaking that still leaves room for sports betting contracts, even as it seeks tighter limits on contracts tied to terrorism, assassinations and war.

Gensler also questions whether the CFTC has the resources or expertise to police such markets effectively. He says the agency neither sought funding to regulate sports betting nor has the experience to do so, a criticism that adds to a longer-running debate over the CFTC's staffing and budget compared with the SEC, which has a much larger workforce.

Our earlier coverage of the DOJ’s anti-weaponization fund explained that a federal judge extended a preliminary injunction keeping the program on hold amid concerns about unclear rules, oversight, and potential misuse of the money. The court ordered the Justice Department to submit a detailed implementation report and safeguards, underscoring how litigation can constrain federal agencies when their authority and accountability mechanisms are questioned.

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