The Commodity Futures Trading Commission has issued new guidance on how sports prediction markets operate in the US.
The regulator is also in active discussions with sports leagues regarding sports event contracts, according to Barron’s.
In its advisory sent to designated contract markets, the Commodity Futures Trading Commission warned exchanges to carefully assess sports-related contracts that could be vulnerable to manipulation.
Markets based on the actions or performance of a single player, often similar to traditional sportsbook prop bets, were singled out as particularly risky because a single individual could influence the outcome.
