Former New Jersey Gov. Chris Christie, who is now a strategic advisor to the American Gaming Association (AGA), has accused Commodity Futures Trading Commission (CFTC) Chairman Michael Selig of lying to President Trump regarding the regulator’s legal battles with states on the prediction market issue.
Selig was appointed by the president last October to lead the commission and has engaged in legal disputes with states regarding prediction markets. Christie claims that Selig provided false information to Trump at an event at the White House, where prediction market executives were excluded due to the industry’s negative impact on the Clarity Act.
“He (Selig) stood in front of the president the other day and lied,” Christie told CNBC. “He lied to his boss and this is a guy who’s leading a losing effort for the president.”
The AGA advisor suggests that the CFTC chair is misleading the president about the outcomes of legal battles with states.
Forty-Four Attorneys General Can’t All Be Wrong
Christie highlights that states have won 85% of their cases against prediction markets, with 44 attorneys general from both parties criticizing the CFTC’s actions. This likely pertains to the impact of federally regulated prediction markets on states’ ability to regulate sports wagering, which is supported by Congress and the Supreme Court.
“Are 44 of them (attorneys general) wrong, rogue? Republicans and Democrats,” opined Christie.
He suggests that given the industry’s 85% loss rate in court cases, it’s time to reconsider their approach.
Some financial experts believe that even when prediction market operators win, it is often due to technicalities rather than merit. The prevailing opinion is that the future of sports event contracts offered by prediction markets will likely be determined by the Supreme Court.
AGA Is no Fan of Prediction Markets
The AGA, representing commercial and tribal casino operators, has been a vocal critic of prediction markets due to their impact on state gaming regulations.
The association argues that prediction markets offering sports derivatives outside state regulations have resulted in a tax loss of $1.34 billion for states and tribal nations.
In an interview with Bloomberg, Christie expressed his belief that prediction markets will continue to face legal challenges from states.