# Federal regulators propose rules for prediction markets despite state objections **Published:** 2026-06-10T22:15:42.000Z **Source:** [Nebraska Examiner](https://nebraskaexaminer.com/2026/06/10/repub/trump-administration-proposes-new-rules-for-prediction-markets/) **AI-generated:** yes (claude-haiku-4-5-20251001) **Canonical:** https://lincolne.news/article/federal-regulators-propose-rules-for-prediction-markets-despite-state-objections The Trump administration Wednesday proposed new regulations for online prediction markets that would ban bets on war, assassination and other extreme events, but still allow many sports bets to operate on the growing platforms, according to [reporting from the Nebraska Examiner](https://nebraskaexaminer.com/2026/06/10/repub/trump-administration-proposes-new-rules-for-prediction-markets/). The move comes as [prediction markets like Kalshi and Polymarket have attracted $97 million in wagers on Nebraska Cornhuskers basketball games this season alone](https://1011now.com/2026/03/19/trading-or-gambling-how-new-way-wager-sports-is-evading-nebraskas-betting-ban/), circumventing the state's prohibition on online sports betting. Nebraska Attorney General Mike Hilgers joined a bipartisan group of state attorneys general in signaling opposition to the platforms, calling them "a loophole gone wild." The Commodity Futures Trading Commission proposed a 267-page framework Wednesday that would define which event contracts are permitted under federal oversight. The rules would prohibit trading on war, terror attacks and assassinations while allowing most sports-related transactions such as moneylines, point spreads and player props. However, the agency said it will likely ban individual proposition bets, bets on athlete injuries, refereeing decisions and physical altercations during games. The regulations set the stage for an ongoing battle between federal and state authorities over prediction markets. [Minnesota last month became the first state to outright ban prediction markets, prompting a lawsuit from the federal commission](https://minnesotareformer.com/2026/05/19/minnesota-becomes-first-state-to-outlaw-prediction-markets-immediately-sued-by-federal-regulators/). The American Gaming Association said prediction markets have cost states more than $1 billion in lost gambling tax revenue and called the CFTC's approach "a remarkable attempt to redefine what constitutes sports betting." Critics argue the proposed rules do not go far enough in addressing the platforms' expansion. Benjamin Schiffrin, director of securities policy at Better Markets, said the CFTC has become "the prediction market industry's biggest cheerleader" rather than a regulator. He noted that prohibitions on war and assassinations merely duplicate existing federal law. WarHorse Casino, which operates sportsbooks [in Omaha and Lincoln, reported a 13 percent drop in Super Bowl wagering this year](https://siliconprairienews.com/2026/04/trading-or-gambling-how-a-new-way-to-wager-on-sports-is-evading-nebraskas-betting-ban/), suggesting the prediction platforms are competing for Nebraska's gaming dollars. The public comment period on the proposed rules will last 45 days. Legal experts say the courts will ultimately decide what role states can play in regulating prediction markets, as the dispute represents one of the most significant regulatory conflicts in U.S. gambling history. ## Sources - [Nebraska Examiner](https://nebraskaexaminer.com/2026/06/10/repub/trump-administration-proposes-new-rules-for-prediction-markets/) - [1011now coverage of prediction market wagering on Nebraska Cornhuskers](https://1011now.com/2026/03/19/trading-or-gambling-how-new-way-to-wager-on-sports-is-evading-nebraskas-betting-ban/) - [Minnesota Reformer reporting on Minnesota's prediction market ban](https://minnesotareformer.com/2026/05/19/minnesota-becomes-first-state-to-outlaw-prediction-markets-immediately-sued-by-federal-regulators/) - [Silicon Prairie News coverage of WarHorse Casino betting trends](https://siliconprairienews.com/2026/04/trading-or-gambling-how-a-new-way-to-wager-on-sports-is-evading-nebraskas-betting-ban/) --- This article was generated by AI (claude-haiku-4-5-20251001) based on source material from Nebraska Examiner, enriched with 2 web searches. The original source is available at https://nebraskaexaminer.com/2026/06/10/repub/trump-administration-proposes-new-rules-for-prediction-markets/.