Genius Sports has stressed the importance of sports integrity in the context of sports event contracts. In a letter sent on May 27 to Christopher Kirkpatrick, secretary of the Commodity Futures and Trading Commission (CFTC), the agency shared its perspective.
In the letter, Genius Sports drew analogies between sports event contracts and regulated sports betting markets in the U.S. It emphasized the importance of data integrity and sports integrity, especially under the oversight of the CFTC as this sector grows.
The letter explained, “Genius Sports has observed with interest how DCM-offered sports event contracts are becoming more common while courts and regulators address various jurisdictional issues. Although this letter does not seek to resolve these jurisdictional questions, it points out that sports gaming on state-licensed sports markets, often referred to as sports betting, largely aligns with DCM-listed sports event contracts.”
It added, “This observation leads us to maintain that addressing risks linked to data and sports integrity is crucial for CFTC/DCM-listed contracts. We share the concerns voiced by sports organizations to the CFTC that these risks will increase significantly, especially as in-play and player proposition or other individual performance-based markets are considered for introduction as sports event contracts on DCMs.”
Genius Sports, which provides data monitoring for major U.S. sports leagues such as the NFL, NBA, and WNBA, described the event contracts domain as having substantial potential for growth and innovation, advocating for continued CFTC regulation.
“We are confident that a federal regulatory approach led by the CFTC can foster responsible growth and innovation within the sports event contracts sector. We aim to support the CFTC’s future initiatives by sharing our expertise and experience,” the letter elaborated. “It’s crucial for the CFTC to consider protections in state-based sports market regulatory regimes, particularly those concerning sports integrity, as markets for sports event contracts offered by DCM expand.”
The letter also urged the CFTC to integrate aspects of state-based sports markets’ regulatory regimes, especially in terms of customer protection and sports integrity, to avoid manipulation of contracts.
Moreover, Genius Sports expressed its readiness to continue collaborating with the CFTC to maintain sporting integrity in sports event contracts.
“We have a broad range of experience in regulated sports markets, enhancing compliance, integrity, and innovation through technology,” the letter concluded. “We welcome the opportunity to further engage with the CFTC, participate in roundtables, meetings, and generally contribute proactively to this significant policy discussion.”
Genius Sports reported revenues of $144 million for the first quarter of 2025, a 20.3% increase from the previous year. The CFTC recently resolved a legal dispute with predictions market platform Kalshi, initiated in November 2023. Former CFTC commissioner Brian Quintenz, nominated by President Donald Trump to lead as CFTC chair, has pledged to resign from Kalshi’s board if confirmed.