Apr. 25 at 4:22 PM
$DKNG $FLUT In many senses, prediction markets' troubles come down to the CFTC's regulatory inaction. If the agency had a slightly less free hand, the markets wouldn't have a credibility problem.
CEA 5c(c)(5)(c) is pretty clear. Contracts are contrary to the public interest and prohibitable if they are
"(I) activity that is unlawful under any Federal or State law;
(II) terrorism;
(III) assassination;
(IV) war;
(V) gaming; or
(VI) other similar activity determined by the Commission, by rule or regulation, to be contrary to the public interest."
Seems to me like trading on military actions, as well as sports betting and gambling-like products clearly fall into these categories (if not "other similar activity").
If the CFTC simply said, you can have prediction markets but not in these events or things resembling them, then 80% of the things people find objectionable go away.
