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Chris Christie Says Prediction Markets Threaten 'Integrity' Of Sports, 'Need To Be Stopped:' Predicts Supreme Court Showdown
Former New Jersey Gov. Chris Christie (R) is warning that the rapid expansion of sports-related prediction markets poses serious legal, economic and ethical risks, as the platforms undermine state law and threaten the integrity of professional and amateur sports.
Sports Prediction Markets ‘Need To Be Stopped’
Christie, who was the Republican Presidential candidate in 2016 and 2024, and currently serves as a strategic advisor to the American Gaming Association, said unregulated prediction markets are operating illegally across the U.S. and eroding consumer protections while speaking to CNBC’s Contessa Brewer on Thursday.
He said the unchecked expansion of prediction markets is creating serious risks for both consumers and the broader sports ecosystem, particularly as platforms move into states with either weak oversight or clear prohibitions.
This model threatens “the integrity of the sport,” weakens “consumer protection,” and “hurts tax revenue in those states.” The “bottom line,” he said, is that “it’s against the law, and they need to be stopped.”
Christie rejected claims from companies such as Kalshi that they are regulated by the Commodity Futures Trading Commission, and are thus shielded from state law through federal oversight, calling that defense misleading.
“The idea that CFTC is regulating sports is untrue, and Kalshi knows it,” he said.
He also raised concerns about potential corruption risks tied to new betting products, pointing to a growing market allowing wagers on whether college athletes will enter the NCAA transfer portal.
“Imagine how much that could be manipulated,” he said, pointing to bets tied to whether student-athletes enter the NCAA transfer portal.
He cited one such scenario where “a gambler comes and offers a huge amount of money for a young man or woman to not go into the transfer portal,” a move that he said would not only distort competition, but “change the nature of the sport” and “corrupt these athletes.”
Christie argued that existing state-regulated sportsbooks provide crucial oversight mechanisms that prediction markets lack. Looking ahead, he said the legal battle is far from over, adding that the issue “will make it to the Supreme Court.”
Legal Pressure Mounts On Sports Prediction Markets
Last month, investor Ross Gerber termed sports prediction markets as “just illegal sports betting operations that somehow has been allowed to exist,” adding that it was “crazy this hasn't been stopped.”
According to Gerber, platforms such as Kalshi and Polymarket are classifying sports bets as futures contracts, and as a result, are superseding state laws.
Recently, a Nevada judge reversed a crucial order for Kalshi, while ruling that the contracts based on the outcome of sporting events are not subject to regulation by the CFTC.
Leading cryptocurrency exchange, Coinbase Global Inc. (NASDAQ:COIN) filed lawsuits against states such as Michigan, Illinois, and Connecticut, in an attempt to challenge state regulatory authority on prediction markets, saying that it would lead to “immediate and irreparable” harm to its operations.
Shares of Coinbase were down 2.36% on Wednesday, closing at $226.14, and are up 1.38% overnight. The stock scores poorly on Momentum and Value in Benzinga’s Edge Stock Rankings, with an unfavorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, its peers and competitors.
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Photo courtesy: Aaron of L.A. Photography / Shutterstock.com