New guidelines revealed by the Trump administration affirmed the booming industry that is prediction markets, which while similar to sports betting, is in fact legal in all 50 states.

With the The Commodity Futures Trading Commission (CFTC) issuing a set of proposed rules that did not impact the sports betting aspect of prediction markets, wagering on sports has essentially become legal in the state of Alabama.

Although the proposal would prohibit some sports-related contracts, including wagers on player injuries, it does not classify sports prediction markets as illegal gambling. Instead, the CFTC’s focus is on restricting controversial non-sports contracts involving events such as wars, assassinations and terrorist attacks.

“The CFTC will protect the integrity of our regulated markets without standing in the way of responsible innovation,” CFTC Chair Michael Selig said in a statement via KRCR TV. “This proposal gives the Commission a durable, transparent framework to identify the contracts Congress directed us to scrutinize while letting legitimate markets move forward.” 

“It is addressing things that many people would believe are just morally wrong and shouldn’t have wagering on — war, being specific on that — but does it have a major effect on the sports industry right now? No, it does not,” said Matthew Bakowicz, who is a former operations specialist for DraftKings at Foxwoods Resort Casino. “Where the vast majority of predictions are being made are still very much intact.”

While companies like Kalshi and Polymarket pioneered sports prediction markets, industry giants FanDuel and DraftKings have since joined the market. Critics argue the platforms function as de facto sportsbooks, allowing sports wagering in states that have not legalized traditional sports betting.

 The only difference, of course, is the loss in state revenue because it is not regulated by the states themselves.

Prediction markets over the last year have changed the conversation drastically around legalized sports betting, and perhaps in a state like Alabama, it could be the final piece needed to get legalized sports betting back on the ballot.

 Michael Brauner is a Senior Sports Analyst and Contributing Writer for Yellowhammer News. You can follow him on Twitter @MBraunerWNSP and hear him every weekday morning from 6 to 9 a.m. on “The Opening Kickoff” on WNSP-FM 105.5, available free online.