Research commissioned by the American Gaming Association (AGA) has claimed Americans “overwhelmingly” view sports event contracts as gambling.
The research, which was carried out by YouGov via an online survey in early August, noted that 85% of respondents said sports event contracts were gambling and not a financial instrument.
Additionally, 80% said they believed sports event contracts should be regulated like online sports betting, and 69% said each state should have the final decision on whether to allow the product within its borders.
Additionally, 84% of survey respondents said sports event contracts should only be available via a state-licensed sports betting operator.
Sports event contracts and prediction markets have shaken the industry since Christmas 2024, with Kalshi, Robinhood and Crypto.com at the forefront of the push.
The trio all offer sports event contracts which some have suggested are a form of sports betting.
FanDuel has partnered with CME Group to roll out its own prediction market offering, although the joint venture will avoid having sports event contracts.
However, Underdog has linked up with Crypto.com to launch sports event contracts, with the DFS and online sports betting firm the first licensed sportsbook to take such a step.
Polymarket is also due to return to the US with its own sports event contracts, having snapped up QCX and getting a “no-action” stance from the Commodity Futures Trading Commission (CFTC).
Bill Miller, AGA CEO and president, said: “With sports betting operational in 38 states and Washington DC, consumers expect prediction markets to follow the same rules and safeguards as state-licensed sportsbooks.
“This research makes clear: Americans know a sports bet when they see one – and they expect regulators and policymakers to treat them accordingly.”
Earlier this week, Kalshi head of corporate development and former AGA head Sara Slane claimed pushback against sports event contracts could risk “stability of the global financial system”.
Posting on LinkedIn, she wrote: “Prediction markets are federally regulated financial instruments overseen by the CFTC. Full Stop. That’s not just a technicality – it’s a principle Congress locked into law after the 2008 financial crisis to prevent another meltdown.
“Now, state gambling regulators are trying to claim jurisdiction anyway. If they succeed, they won’t just strangle a growing industry – they could open the door to states picking and choosing which futures and derivatives contracts are legal. That puts at risk the $730trn global derivatives market that underpins the economy.”
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YouGov study finds 85% of respondents said the premise of sports event contracts offered by the likes of Kalshi would be considered a form of betting
The post AGA research claims the majority of Americans would class sports event contracts as gambling first appeared on EGR Intel.