Conflicting federal appeals rulings have left the status of sports-event contracts divided between CFTC oversight and state gambling law.
The invitation-only test puts the platform through controlled use by selected participants before a targeted late-October commercial launch.
The trade group says sports-event contracts are bets in substance and should stay within state gambling rules.
They say the change would siphon tribal gaming revenue and clash with Indian gaming law.
Henry Williams called a CFTC proposal “meritless” as Michigan’s exit from the problem-gambling council fed a fight over who sets the rules.
The company’s latest CFTC submissions would take it further into traditional derivatives, after its bitcoin perpetual contract opened the door in late May.
The company says its sports event contracts are federally regulated derivatives, not state gambling, and warns of felony exposure.
The emergency move came after state officials accused the prediction-market platform of running an illegal gambling business and sought more than $36 billion in damages.
The filing comes a day after the company said it launched federally regulated sports event contracts in 47 states.
HB 2711 adds age limits, anti-manipulation rules and steep penalties as the state gaming board tells federal regulators the products are illegal sports wagering.
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