Sports betting should be regulated as a financial product, not gambling, aspiring prediction market provider says
Industry experts argue sports betting should be regulated federally as a financial product to prevent legacy sportsbooks from unfairly banning skilled bettors.Summary
At the Consensus 2026 conference, Novig CEO Jacob Fortinsky and 57 Maiden founder Adam Mastrelli argued that sports betting should be reclassified as a federal financial product rather than a state-regulated gambling activity. Fortinsky criticized the current sportsbook model for penalizing successful, 'sharp' traders, contrasting this with financial markets where efficiency is rewarded. He announced that Novig is transitioning to a federal Designated Contract Market (DCM) framework to operate across all 50 U.S. states. The panelists highlighted the industry's shift toward prediction markets and the likelihood of future Supreme Court litigation regarding the jurisdictional struggle between state gambling regulators and federal commodity oversight.
(Source：CoinDesk)