Lynnae is a journalist covering the intersection of technology, culture, and gambling. She has more than five years of experience as a writer and editor, with bylines at SlashGear and MakeUseOf. On the iGaming side,...
Read Full BioFormer New Jersey Governor Chris Christie has joined the American Gaming Association (AGA), announcing the move on December 19 during an appearance on CNBC. The AGA tapped Christie to lead its efforts to push back against the expansion of Commodity Futures Trading Commission-regulated prediction markets.
In his new capacity, Christie will serve as a strategic advisor to the AGA during a period of heightened tension between the regulated sports betting industry and prediction market operators that offer event contracts tied to the outcome of sporting events.
“Former Governor Chris Christie knows firsthand the importance of state- and tribal-regulated sports betting,” the AGA said in a LinkedIn post sharing Christie’s interview with CNBC correspondent Contessa Brewer.
The AGA has argued that sports event contracts should be regulated in the same way as traditional sportsbooks because they are, “…at their core sports wagers, and should be subject to the same standards that protect fans, bettors, and the integrity of games.”
When asked by Brewer why he was fighting prediction markets, Christie stressed that they’re not legal: “…they’re illegal, so let’s start there. They are clearly illegal in the sports gaming space.” He went on to point out that states oversee sports gambling and cited recent sports betting scandals involving inside information and alleged attempts to manipulate games for betting purposes as evidence of the need for state regulation.
“The problem we’ve seen, both in the NBA and Major League Baseball, was only discovered because the states were working in conjunction with licensed sports books to look for irregularities and get those corrected immediately,” Christie said.
Those checks are missing from prediction markets because they come under the jurisdiction of the CFTC and don’t have to work with state regulators; as a result, as Christie said, “there’s no monitoring of what’s going on there.” He highlighted Kalshi’s move to self-certify NCAA transfer portal markets and the potential for those contracts to be manipulated for financial gain.
Christie’s Role in the Industry Debate Over Prediction Markets
Christie’s new role as strategic advisor to the AGA is the latest example of the trade group’s effort to counter prediction markets as they expand into the sports betting space. His appointment also comes at a time when prediction markets are facing legal battles on various fronts as states look to rein in what they view as unregulated gambling and unauthorized sports wagering activity.
Muddying the waters, traditional sportsbooks, including DraftKings, FanDuel, and Fanatics, have launched their own prediction markets featuring sports event contracts, as they seek to tap into new markets and expand their product line-up beyond traditional state-regulated wagering. All three have since left the AGA amid disagreements over prediction markets: DraftKings and FanDuel in November, followed by Fanatics in early December.
As the AGA positions itself as a defender of state-regulated sports betting, bringing Christie on board will increase the visibility of its position on prediction markets offering sports event contracts. Christie was blunt in his assessment of sports event contracts during the CNBC interview, saying, “It’s not in compliance with the law, and it is hurting the 40 states where this is going on and those 10 states that don’t have sports gambling right now.”
