Authority and public resources
Jurisdiction: United States, federal
Prediction markets are federally regulated derivatives, not state-licensed gambling, according to the U.S. Commodity Futures Trading Commission (CFTC). The CFTC oversees the exchanges nationwide. On that view, there’s no state license to check. The real test is whether an exchange is a designated contract market.
For example, Kalshi was designated on November 3, 2020, and accepts customers in all 50 states. Some states dispute the CFTC’s position over sports contracts, with the fight taken to court.
What the CFTC Regulates
A Derivatives Regulator, Not a Gaming One
Many readers wonder what the Commodity Futures Trading Commission is, and how it links to prediction markets. The CFTC is an independent federal agency that operates on its own, with no parent department. It was established in 1974 under the Commodity Futures Trading Commission Act, and is overseen by Congress.
The agency’s goal is to regulate derivative markets, not gambling. It oversees prediction markets because event contracts are derivatives. The CFTC has overseen such markets since 2004.
Its headquarters are at Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581. The agency can be reached over the phone at 202-418-5000.
New to this market? Read our guide to learn what prediction markets are. The CFTC is one of several regulators available on our regulators hub.
Where Event Contracts Sit in Law
Event contracts sit under Commodity Exchange Act section 5c(c)(5)(C) and 17 C.F.R. Part 40. The CFTC itself operates under the CEA, 7 U.S.C. section 1 et seq. The agency describes these contracts as typically structured as swaps.
The Commodity Futures Trading Commission regulations for exchanges are outlined in 17 C.F.R. Part 38. The CFTC’s position is that this framework applies in all 50 states, yet some dispute that for sports contracts, and some federal appeals courts have reached opposite conclusions.
Who Sets the Minimum Age
The minimum age limit for prediction markets is typically 18. It’s set by an exchange’s own terms and conditions, not the CFTC.
The 21+ rule from most casino state pages doesn’t apply here. Some exchanges may set a higher age minimum than 18. To check an intermediary’s registration and disciplinary history, check the NFA BASIC page.
How to Check a Designated Contract Market
The Official DCM Register
Event contracts that trade on designated contract markets (DCMs), which are exchanges designated under section 5 of the Commodity Exchange Act and 17 C.F.R. Part 38. The CFTC explains designations on its DCM page. The searchable list is in its DCM Search Tool.
Kalshi, Electron Exchange, and ProphetX are among the CFTC-designated event contract exchanges. The prediction markets tracker follows what contracts are on each platform, and where states challenge their operations.
Designated, Registered or Neither
Exchanges don’t carry a license like online casinos or sportsbooks do. They’re designated instead of licensed. Any intermediaries that route customer orders are registered with the CFTC through the National Futures Association.
Some platforms run their own exchange, while others route orders to one. A familiar brand name proves nothing. The real test is whether the name appears on the register. Check the DCM list for an exchange, or the NFA BASIC for an intermediary.
For a wider checklist, check our guide on spotting an unlicensed operator.
The RED List
The RED List, or Registration Deficient List, contains names of foreign entities that appear to be acting in a capacity that requires CFTC registration. The crucial distinction here is that they aren’t registered with the CFTC.
Inclusion of an entity named on this list doesn’t mean that the CFTC or courts have concluded any violations of the Commodity Exchange Act, or the Commission’s regulations. However, the CFTC warns that readers should be cautious of unregistered firms or individuals when participating in prediction market contracts.
CFTC Complaints, Sanctions and Reparations
Raise It with the Exchange First
If you want to file a complaint with the CFTC about a prediction markets exchange, you should start with the exchange first. The CFTC explains that customers can complain to their broker, the NFA, the CFTC, or the exchange. Dispute resolution is one of the core principles a designated contract market must meet.
Check our complaints guide for the general steps on how to proceed.
Tips, Complaints and Reparations
The CFTC takes tips and complaints at cftc.gov/complaint. It also publishes instructions for a Whistleblower Program, a Reparations Program, and a complaint form. There’s no published filing window.
Commodity Futures Trading Commission sanctions and enforcement actions are listed under “Holding Wrongdoers Accountable” in the Law & Regulation section.
Reparation claims go to the CFTC’s Office of Proceedings. These claims have a deadline, and must generally be filed within two years of the cause of action. This program resolves disputes with CFTC-registered firms, including brokers.
Prediction market exchanges may fall outside of this scope. Filing fees run $50, $125 and $250, and the program can’t be used if the same claim is in NFA arbitration or in court.
A federal self-exclusion scheme doesn’t exist. Exchanges set their own controls, and the CFTC treats event contracts as derivatives instead of gambling. Players who believe their gambling is becoming a problem can contact the national gambling helpline at 1-800-MY-RESET. See our responsible gambling hub to learn more.
What the CFTC Is Working On
The CFTC’s Division of Market Oversight issued a staff advisory on March 12, 2026 on listing event contracts, with a particular focus on sports. The Commission published an advanced notice of proposed rulemaking.
In June 2026, the CFTC proposed a rule on event contracts involving gaming and other listed activities. A few months later, in September 2026, two further rules were reportedly sent to the White House for review. One defines event contracts as swaps, and the other excludes casino-style gambling products from the swap definition. None is final.
Prediction Market Exchanges We Cover
The prediction markets we cover include PredictIt, Robinhood, Polymarket, Kalshi, ForecastEx, and Crypto.com. Some of these markets run their own exchange, others route orders to one. Each review states the regulatory status rather than assuming it.
Check the DCM register and NFA BASIC yourself for the latest updates on designation.
