Chris Christie Joins AGA in Fight Against Sports Prediction Markets

^{Chris Christie has pushed for stronger regulation of sports betting since when he was governor of New Jersey. Now he joined the American Gaming Association to help push back against sports prediction markets. (Photo: Bryan Littel / Alamy)}

Former New Jersey Governor Chris Christie is partnering with the American Gaming Association (AGA) in the organization’s effort to fight back against prediction market platforms like Kalshi and Polymarket.

The AGA announced the move last week, bringing in Christie as a strategic advisor on issues related to sports event contracts.

Christie Plays Key Role in Widespread Sports Betting Regulation

Christie has unique experience in the world of regulated sports betting. He was governor when New Jersey pushed for state regulation of sports betting, ultimately leading to the Supreme Court overturning the Professional and Amateur Sports Protection Act in the case Murphy v. National College Athletic Association (NCAA). 

“They are clearly illegal in the sports betting space,” Christie said during an interview on CNBC. “The Supreme Court turned this over to the states to do, and the fact is, doing it through the states gives you two things. One, it gives availability to people. Two, in a regulated market.”

Kalshi and other prediction markets argue that they are regulated – just not by state governments. Prediction platforms are governed by the Commodity Futures Trading Commission (CFTC), negating any need to get individual state approval for its offerings. 

That hasn’t sat well with state regulators across the country, who say that these platforms are offering sports betting in violation of the licensing rules in each jurisdiction, and without the player protections required under their laws. This has led to several lawsuits between Kalshi and state regulators, not all of which have one well for the prediction platform.

Kalshi is also facing a class action lawsuit filed in New York that accuses the company as operating primarily as an unlicensed sports betting website. The platform has also caught the ire of tribal groups across the country, who argue that it and other prediction marketplaces are threatening the gaming revenues that tribes rely on.

Gaming Giants Split on Approach to Prediction Markets

Christie hit on these points in his CNBC interview, noting that prediction markets may conflict with state laws regardless of whether sports betting is legal in a given jurisdiction.

“These are folks that are not being regulated, it’s not in compliance with the law, and it is hurting the 40 states where [regulated sports betting] is going on,” Christie said. “And in those 10 states that don’t have sports gambling, those folks have made a decision not to allow it in their state, and these folks are flouting state law and going in there anyway.”

The AGA’s hostility towards sporting event contracts on prediction sites has revealed a split in the gaming industry between those who see the activity as clearly illegal and those who would prefer to embrace the market. 

In November, both FanDuel and DraftKings left the AGA due to their efforts to add prediction markets to their suite of offerings, saying their goals in that sector didn’t align with the organization’s.