Iowa attorney general joins coalition to advocate for state control over sports gambling

Iowa Attorney General Brenna Bird has joined 41 attorneys general in urging federal regulators to affirm state jurisdiction over sports-related event contracts, citing concerns over unregulated prediction markets.

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MADDIE AUGUSTINE KETV NEWSWATCH SEVEN. NEBRASKA AND IOWA ATTORNEY GENERAL. JOINING OTHER ATTORNEY GENERAL IN THE PUSH TO KEEP SPORTS RELATED PREDICTION MARKETS UNDER STATE CONTROL. SO THE COALITION SENT A LETTER TO FEDERAL REGULATORS. THEY SAY COMPANIES LIKE POLYMARKET AND CALL.SHE ARE GETTING USERS THE BETS ON SPORTS OUTCOMES WITHOUT ANY STATE OVERSIGHT. AND THEY’RE DOING IT WITHOUT CONSUMER PROTECTIONS OR GAMBLING TAXES. ATTORNEY GENERAL SAY SPORTS GAMBLING POSES HEALTH RISKS AND FINANCIAL SECURITY. THEY’RE PUSHING F

Brenna Bird and a multistate coalition say sports prediction markets should face state oversight, consumer protections and taxes.

Updated: 5:43 AM CDT May 5, 2026

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Attorney General Brenna Bird announced in a news release Monday she has joined a bipartisan coalition of 41 attorneys general in urging federal regulators to affirm that states should have jurisdiction over sports-related “event contracts.””States have the right to govern their own gaming industry; historically, they’ve been successful at regulating gambling within their borders,” Attorney General Bird said in a news release. “Here in Iowa, our legislature makes the laws, and the Iowa Racing and Gaming Commission enforces the laws, including the payment of any taxes required. These companies are trying to get around those state regulations and taxes. Several courts have agreed with the request of this coalition already that sport-related prediction-market companies should be subject to an individual state’s gambling rules.”The coalition filed a formal comment with the Commodity Futures Trading Commission (CFTC), arguing that prediction markets – platforms where users trade contracts on the outcome of future events – have effectively become unregulated sportsbooks. The platforms, including Polymarket and Kalshi, allow users to place wagers on game winners, point spreads and player statistics, bypassing the consumer protections and tax requirements mandated by state gambling laws.Because the contracts are considered entertainment-based gambling rather than tools for financial risk management, they fall outside the CFTC’s jurisdiction, the coalition said in a news release. The letter notes that gambling regulation is a state power under well-established case law.The coalition’s letter responds to a CFTC request for public comment on proposed rules for prediction markets. The states urge the commission to confirm through rulemaking that it lacks jurisdiction over sports-related contracts, ensuring that the power to regulate or prohibit sports gambling remains with states.Attorney General Bird and the coalition also caution that sports gambling poses serious risks to public health and financial security, with millions of Americans qualifying as problematic or pathological gamblers. The coalition asserts that states – not the CFTC – are best equipped to protect their residents from the associated harms.Joining Attorney General Bird on the coalition are the attorneys general of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia and Wisconsin. Read the full letter here. Make sure you can always see the latest news, weather, sports and more from KETV NewsWatch 7 on Google search.NAVIGATE: Home | Weather | Local News | National | Sports | Newscasts on demand |

“States have the right to govern their own gaming industry; historically, they’ve been successful at regulating gambling within their borders,” Attorney General Bird said in a news release. “Here in Iowa, our legislature makes the laws, and the Iowa Racing and Gaming Commission enforces the laws, including the payment of any taxes required. These companies are trying to get around those state regulations and taxes. Several courts have agreed with the request of this coalition already that sport-related prediction-market companies should be subject to an individual state’s gambling rules.”

The coalition filed a formal comment with the Commodity Futures Trading Commission (CFTC), arguing that prediction markets – platforms where users trade contracts on the outcome of future events – have effectively become unregulated sportsbooks. The platforms, including Polymarket and Kalshi, allow users to place wagers on game winners, point spreads and player statistics, bypassing the consumer protections and tax requirements mandated by state gambling laws.

Because the contracts are considered entertainment-based gambling rather than tools for financial risk management, they fall outside the CFTC’s jurisdiction, the coalition said in a news release. The letter notes that gambling regulation is a state power under well-established case law.

The coalition’s letter responds to a CFTC request for public comment on proposed rules for prediction markets. The states urge the commission to confirm through rulemaking that it lacks jurisdiction over sports-related contracts, ensuring that the power to regulate or prohibit sports gambling remains with states.

Attorney General Bird and the coalition also caution that sports gambling poses serious risks to public health and financial security, with millions of Americans qualifying as problematic or pathological gamblers. The coalition asserts that states – not the CFTC – are best equipped to protect their residents from the associated harms.

Joining Attorney General Bird on the coalition are the attorneys general of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia and Wisconsin.

Read the full letter here.