Sports Betting Should Be Treated as Financial Product, Prediction Market Executives Say

The debate over how sports betting should be regulated is gaining momentum as prediction market companies argue that sports event contracts belong under financial regulations instead of traditional gambling laws.

Prediction Market Firms Push for Financial Regulation of Sports Betting

Speaking at an industry conference in Miami, Novig CEO Jacob Fortinsky argued that sports betting should be treated as a financial product because it functions more like a market-based investment than casino gambling.

Fortinsky criticized the traditional sportsbook industry, saying successful bettors are often restricted or banned for consistently winning. He described sports betting as a multi-trillion-dollar global market still dominated by conventional casino operators.

He also said sports event contracts should be regulated federally rather than through separate state gambling systems. According to Fortinsky, Novig plans to transition this summer from a sweepstakes model operating in 35 states to a federal Designated Contract Market framework, allowing nationwide expansion across all 50 states.

Traders Say Traditional Sportsbooks Penalize Skilled Bettors

Adam Mastrelli, co-founder of prediction market firm 57 Maiden, shared his own experience of being removed from two major sportsbooks after consistently profitable betting.

He argued that skilled bettors are treated unfairly, comparing sportsbook restrictions to removing professional athletes for performing too well.

Legal Battle Over Sports Prediction Markets May Grow

Fortinsky expects the legal fight between federal regulators, states, and prediction market firms to eventually reach the US Supreme Court. Multiple lawsuits involving sports event contracts and financial trading rules are already underway.

Supporters of prediction markets argue sports contracts may actually be safer than political betting because risks of insider influence and manipulation are lower.