Sporttrade Seeks Nationwide Sports Betting Market Approval
Prediction market platform, Sporttrade, advocates for federal regulation in the prediction market sector, aiming to ensure industry compliance with the Commodity Futures Trading Commission (CFTC).
Sporttrade, a state-regulated sports prediction platform, aims to compete on a national scale against trading companies that offer similar sports-event contracts.
Alex Kane, the CEO of Sporttrade, expressed concern in an interview with Sportico, stating that companies like Kalshi, Robinhood, and Crypto.com, regulated by the federal Commodity Futures Trading Commission (CFTC), are causing "irreparable harm" to Sporttrade's product. This harm is due to state gaming regulations that these federally-regulated companies bypass.
Sporttrade's current operation is limited to a few states, including Arizona, Colorado, Iowa, Virginia, and New Jersey. In response, the company sent a formal request to the CFTC on April 25, 2025, seeking approval to operate in all 50 U.S. states.
Kalshi, for instance, is a federally regulated company that offers sports-related event contracts without holding state gaming licenses, putting Sporttrade at a competitive disadvantage. Sporting companies, like Sporttrade, are overseen by state regulators, with varying rules and laws in each market.
In an attempt to level the playing field, Sporttrade is hoping to become the first sports-only derivatives platform regulated at both state and federal levels, setting it apart from competitors like Kalshi. The decision from the CFTC on Sporttrade's request will determine whether sports event contracts can be offered nationwide under federal oversight, potentially resolving the regulatory uncertainty surrounding these products.
Keep betting, but smartly! Here's a little background: Established in 2018, Sporttrade operates a real-money sports betting exchange, allowing users to buy and sell contracts tied to sports outcomes, similar to trading stocks[citation needed].
[Footnote 1]: Invest wisely! Always understand the risks involved in sports prediction markets.[Footnote 2]: Sporttrade seeks federal approval to expand across the U.S., aiming to even the playing field with federally regulated competitors like Kalshi.[Footnote 3]: Sporttrade positions itself as the first sports-only derivatives platform regulated at both state and federal levels.[Footnote 4]: The CFTC's decision on Sporttrade's request will determine the future of sports event contracts in the U.S.[Footnote 5]: Companies like Kalshi and Crypto.com operate on a national scale without state gaming licenses, causing a competitive disadvantage for Sporttrade.
- Sporttrade, a sports prediction platform regulated by individual states, aspires to compete on a national scale with companies like Kalshi, Robinhood, and Crypto.com, which are regulated by the federal Commodity Futures Trading Commission (CFTC).
- These federally-regulated companies, such as Kalshi, operate on a national scale without holding state gaming licenses, putting Sporttrade at a competitive disadvantage.
- In an attempt to level the playing field, Sporttrade is striving to become the first sports-only derivatives platform regulated at both state and federal levels.
- The decision from the CFTC on Sporttrade's request will potentially resolve the regulatory uncertainty surrounding sports event contracts, determining whether these products can be offered nationwide under federal oversight.
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