Utah Gov. Spencer Cox has publicly vowed to fight a prominent Trump administration official in court over federal efforts to prevent states from banning or restricting prediction markets. These platforms allow users to trade contracts on the outcomes of events — including sports results, political outcomes, and other future events — and have sparked sharp regulatory debate.
The controversy centers on President Donald Trump’s Commodity Futures Trading Commission (CFTC) Chairman Michael Selig, who is pushing back against state efforts to regulate or ban prediction markets. The CFTC asserts that these markets fall under its federal authority as commodity and derivative contracts, not under state gambling laws.
Cox criticized this stance, arguing that prediction markets are effectively a form of gambling that should be regulated or banned at the state level, especially in Utah, where state law — and broader public sentiment — strongly opposes gambling.
“Over the past year, American prediction markets have been hit with an onslaught of state-led litigation,” Selig said in a video clip posted to social media on Tuesday. “In response, the CFTC has today filed a Friend of the Court brief to defend its exclusive jurisdiction over these derivative markets.”
He continued:
“Prediction markets aren’t new. The CFTC has regulated these markets for over two decades. They provide useful functions for society by allowing everyday Americans to hedge commercial risks like increases in temperature and energy price spikes. They also serve as an important check on our news media and our information streams. Today, the CFTC is taking an important step to ensure that these markets have a place here in America and have the integrity, resilience, and vibrancy that our derivatives markets deserve. To those who seek to challenge our authority in this space, let me be clear: we will see you in court.”
In a social media retort directed at Selig, Cox mocked the idea that prediction markets are just like traditional financial derivatives, calling them “gambling — pure and simple.”
The Republican governor said Utah would use every available resource, including legal action, to defend state regulatory authority and keep prediction markets out of the Beehive State.
“Mike, I appreciate you attempting this with a straight face, but I don’t remember the CFTC having authority over the ‘derivative market’ of LeBron James rebounds,” Cox responded bluntly. “These prediction markets you are breathlessly defending are gambling — pure and simple. They are destroying the lives of families and countless Americans, especially young men. They have no place in Utah.”
“Let me be clear, I will use every resource within my disposal as governor of the sovereign state of Utah, and under the Constitution of the United States to beat you in court,” he continued.
Other Republican figures, such as former New Jersey Gov. Chris Christie, have also criticized the federal approach for impinging on states’ rights to regulate or ban gambling.
Mediaite noted that PBS News covered Selig’s announcement and highlighted ties between prediction markets and members of the Trump family. In its reporting, PBS noted the potential financial implications of regulatory decisions affecting the industry. “Any friendly decision the CFTC makes on this industry could end up financially benefiting the president’s family as well. President Trump’s son, Donald Trump Jr., has invested in Polymarket through his venture capital firm and is a strategic advisor for Kalshi,” PBS reported.
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