Rep. Schiff Grills Quintenz Regarding Event Agreements, Tribal Autonomy
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Published: June 10, 2025, 08:30 AM.
Last Updated: June 10, 2025, 08:30 AM.
Op-Ed: Sports Event Contracts and the Game of RegulationCFTC nominee Quintenz grilled on potential tribal sovereignty violations
Brian Quintenz, President Trump's chosen one for the helm of the Commodities Futures Trading Commission (CFTC), found himself in the hot seat today before the Senate Agriculture Committee, answering questions on a myriad of topics, including the burgeoning prediction markets industry’s intersection with sports betting.
Sen. Adam Schiff (D-CA), who represents some of the largest tribal casino operators in the U.S., peppered Quintenz, a former board member of prediction market titan Kalshi, with queries about possible plans to leverage the CFTC's regulatory power to examine whether event-linked derivatives threaten tribal sovereignty, thereby undermining the Indian Gaming Regulatory Act (IGRA).
"I'm worried these event contracts, indistinguishable from gaming in the consumer's eye, could be breaching tribal sovereignty, eroding state and tribal gaming compacts that clash with IGRA," said Schiff, expressing his concerns.
Quintenz responded that, in his view, the law - specifically, the Commodities Exchange Act (CEA) - presents a clear picture regarding events with commercial, financial, or economic consequences. If these standards are met, the CEA defines the contracts in question as viable commodities, eligible for futures contracts listing.
Tribal Stakes in California
For California's tribes, Schiff's worries hold water. Several California tribal casino operators, including the Agua Caliente Band of Cahuilla Indians, invested substantial sums in Schiff’s 2024 senate campaign. Their shrewd investments prove prophetic, given Schiff's questions regarding the Golden State’s situation.
One key reason prediction market operators have attracted scrutiny is their ability to rely on their federal regulation by the CFTC - unlike state-regulated sports betting platforms - to offer sports event contracts across all 50 states without procuring gaming licenses in those jurisdictions.
California, with Schiff's estimated representation of over 100 tribal nations, presents a trickier scenario because no sports wagering is currently allowed in the state, and tribal gaming operators control gaming expansion. In 2022, commercial sportsbooks supported a ballot proposal to bring online sports betting to California without consulting tribes, with disastrous consequences. Operators are now frantically trying to mend fences with the tribes.
Quintenz informed Schiff he would heed the tribes' concerns, noting that operators could offer event contracts if they wished. The CFTC nominee also expressed openness to in-depth discussions with all stakeholders regarding the convergence of event contracts and tribal gaming.
Quack-like Betting
Of specific relevance to Kalshi, the company has troubled some state gaming regulators due to inconsistent claims regarding whether its sports event contracts truly represent sports wagering in the traditional sense. The company and its rivals offer yes/no derivatives on games, which resemble moneyline bets.
Using a variation of “If it walks like a duck and quacks like a duck...,” Schiff made his stance plain, stating that prediction markets are providing a form of sports wagering to customers, thus posing a potential threat to tribal casino operators with agreements in place.
"If betting on the outcome of a sporting event seems like sports betting, looks like gaming, sounds like gaming, smells like gaming, and features winners and losers like gaming, it's probably gaming," Schiff concluded.
- In the context of the regulation of sports betting, Sen. Adam Schiff expressed concerns about the potential violation of tribal sovereignty by prediction markets that offer sports event contracts, which could undermine the Indian Gaming Regulatory Act (IGRA).
- One reason prediction market operators have attracted scrutiny is their ability to rely on federal regulation by the Commodities Futures Trading Commission (CFTC) to offer sports event contracts across all 50 states without procuring gaming licenses in those jurisdictions.
- California, with Schiff's representation of over 100 tribal nations, presents a trickier scenario because no sports wagering is currently allowed in the state, and tribal gaming operators control gaming expansion.
- Brian Quintenz, President Trump's CFTC nominee, acknowledged the issues surrounding the convergence of event contracts and tribal gaming, stating that he would heed the tribes' concerns and expressed openness to in-depth discussions with all stakeholders regarding this matter, including tribal gaming operators andPrediction Market operators.
