CFTC Orders Prediction Markets to Drop Gambling-Style Odds

The Commodity Futures Trading Commission has directed federally regulated prediction market platforms to stop displaying their contracts using American-style gambling odds, issuing a formal warning that such a format is deceptive and could mislead consumers. The directive, reported on August 7, 2026, was communicated in letters to all exchanges offering event contracts, reminding them to comply with U.S. derivatives laws and avoid deceptive practices in listing, advertising, or soliciting trades.

The regulator instructed platforms to present contract prices in nominal or percentage terms that reflect market pricing, rather than using the plus-and-minus sign format common in sports betting. The CFTC cited research indicating that American-style odds, also known as moneyline odds, can encourage greater risk-taking among users. A spokesperson for the prediction market platform Kalshi confirmed it would comply with the directive by the established deadline, while Polymarket did not respond to requests for comment. Entities must confirm receipt of the regulator's message by August 31.

This operational warning arrives amid an escalating legal and jurisdictional conflict between...