Representative Paul Tonko Urges CFTC to Prohibit Gaming in Prediction Markets
Representative Paul D. Tonko of New York filed a comment with the Commodity Futures Trading Commission (CFTC) on April 30, 2026, advocating for the prohibition of gaming-related event contracts within prediction markets. Tonko's argument centers on the belief that many prediction market contracts closely resemble gambling and could lead to public health harms. This stance aligns with a consumer protection framework, suggesting that if a contract is perceived as gambling by the customer, technical distinctions in product architecture should not exempt operators from stricter oversight. His position emphasizes the need for a product-by-product risk assessment for any market tied to sports outcomes, political events, or public emergencies, considering legal and reputational risks, customer perception, and promotional language. This action is part of a broader movement for gambling reform, which includes efforts by Senator Richard Blumenthal to establish federal safeguards for online prediction markets and add...
