CME Group Chairman and CEO Terry Duffy has said he expects the legal debate surrounding sports prediction markets could eventually reach the US Supreme Court.
Speaking during the company’s second-quarter earnings call on 22 July, Duffy said he believes sports prediction markets are effectively a form of gambling, while noting that the issue is likely to face further legal scrutiny in the years ahead.
Although CME Group has reported growing interest in its own prediction market products, Duffy indicated the company has no intention of becoming involved in the increasingly contentious market for sports event contracts.
According to the company, around 140,000 accounts traded event contracts during the second quarter, representing a 13% increase compared with the previous quarter.
The comments come as regulators, exchanges and gaming operators continue to debate whether sports event contracts should be regulated as financial derivatives or treated as sports betting products under state gambling laws.
Several legal challenges are already underway in the United States, making the future regulatory framework for sports prediction markets one of the gambling industry’s most closely watched issues.
Source: Northeast Times (reporting on CME Group’s second-quarter earnings call).
