Iowa Attorney General Leads Multi-State Push to Reinforce State Authority Over Sports Betting Markets

Brenna Bird announced Monday that she has joined a bipartisan coalition of 41 state attorneys general calling on federal regulators to reaffirm that states—not the federal government—should control sports-related betting markets.

In a formal statement, Bird emphasized that states have historically regulated gambling effectively within their borders. She argued that Iowa’s legal framework, enforced by the Iowa Racing and Gaming Commission, ensures proper oversight, including taxation and consumer protections. According to Bird, emerging prediction-market platforms are attempting to bypass these safeguards.

The coalition submitted a formal comment to the Commodity Futures Trading Commission (CFTC), warning that prediction markets—online platforms where users trade contracts based on future outcomes—are increasingly functioning like unregulated sportsbooks. Popular platforms such as Polymarket and Kalshi allow users to wager on sports results, including winners, point spreads, and player performance metrics.

State officials argue that these platforms sidestep existing gambling laws, avoiding taxes and consumer protections required at the state level. Because these contracts are primarily entertainment-driven rather than financial risk management tools, the coalition contends they fall outside federal jurisdiction.

The letter was submitted in response to the CFTC’s request for public input on proposed regulations for prediction markets. The coalition is urging the agency to formally recognize that it does not have authority over sports-related event contracts, thereby preserving states’ rights to regulate or prohibit sports gambling.

Beyond regulatory concerns, Bird and her counterparts highlighted the broader societal risks associated with sports betting, including financial instability and addiction. They stressed that state governments are better positioned than federal agencies to address these issues and safeguard residents.

The coalition includes attorneys general from across the United States, representing a wide range of political affiliations, signaling broad agreement on maintaining state control over gambling regulation.