Published on: March 8, 2026, 07:00h.
Updated on: March 7, 2026, 07:51h.
- Organization is a consistent adversary of prediction markets
- Claims the sector is essentially providing gambling under a different name
- Better Markets asserts that the CFTC lacks the expertise and resources to oversee gaming nationwide
Better Markets, a bipartisan public policy organization, asserts that prediction markets are fundamentally offering betting services, disguising it with the term “event contracts.”
This organization has swiftly become a prominent critic of the industry, arguing that major prediction market operators utilize the event contract terminology to bypass state gambling laws. Better Markets claims that these companies provide services strikingly similar to those offered by casinos and sportsbooks.
“These activities are essentially equivalent to gambling at a casino, sportsbook, or local bookmaker, which allows users to bet on a variety of topics from elections and sporting events to the Golden Globes and even the second coming,” says Better Markets.
The organization does not hold back in its critiques of the sector. In a January report, Better Markets stated that prediction markets “gamify” finance, blurring the lines between betting and investing, which could mislead inexperienced young retail investors.
Better Markets Critiques the CFTC as Well
The Commodities Futures Trading Commission (CFTC), which serves as the federal regulator for prediction markets, also came under fire from Better Markets. The group openly challenged the commission’s capability to effectively oversee a new type of wagering that is currently accessible nationwide.
“The CFTC is a federal financial regulatory agency lacking experience, expertise, personnel, technology, or budget necessary to monitor gambling across all 50 states, covering an infinite range of topics, and attempting to do so will distract the CFTC from its essential role of overseeing the multi-trillion dollar derivatives and commodities markets,” the group stated. “Every American relies on the CFTC to assure that everyday essentials are available in a timely manner, in appropriate amounts, and fairly priced based on market dynamics.”
These comments coincide with increasing calls from politicians and tribal gaming leaders urging the commission to implement greater oversight of prediction markets. Some echo Better Markets’ concerns that the commission was not established to regulate wagering and therefore lacks the required expertise to fulfill this role.
The Commodities Exchange Act (CEA), often referenced by prediction market operators, grants the CFTC the authority to regulate futures, options, and swaps, provided those derivatives serve legitimate financial purposes. Critics, including state regulators, argue that event contracts related to sports, among others, do not qualify as useful financial instruments.
Prediction Markets ‘Promote Unregulated Gambling’
One of the primary critiques leveled at prediction market operators is that these entities circumvent state gambling laws due to the absence of state gaming licenses. Better Markets supports this view and elaborates that yes/no exchanges particularly target younger demographics.
“These companies have unleashed unregulated gambling on a national scale, avoiding oversight or review by any elected officials, regulators, or policymakers, despite the significant public interest in properly regulating gambling to prevent criminal activity, protect minors, prohibit manipulative gamification techniques and AI deepfakes, and address addiction and other social issues such as alcoholism, substance abuse, financial instability, spousal and child abuse, and other negative behaviors frequently associated with gambling,” the policy group asserted.