NASPL pushes for prediction markets to be regulated as gambling
2026-07-22
Source: Yogonet
NASPL has issued a policy statement urging regulators to classify prediction markets as gambling, warning that a lack of oversight threatens consumer protection, sports integrity, and public funding. The association aligns with the WLA in demanding urgent regulatory clarification across all jurisdictions.
The North American Association of State and Provincial Lotteries (NASPL) has formally called on regulators to treat prediction markets as gambling products, subject to the same licensing and oversight requirements applied to traditional betting. In a newly released policy statement, the association warns that leaving these markets outside established regulatory frameworks could erode consumer safeguards, jeopardize public funding streams, and threaten the integrity of sports.
Key concerns outlined
NASPL describes prediction markets as a form of gambling masquerading under a different name, enabled by technological advances. The association argues that when a product offers financial gains or losses contingent on the outcome of future events, it meets the legal definition of gambling under most jurisdictions. While some participants claim skill plays a role, NASPL contends that chance remains the dominant factor, meaning such contracts could be deemed illegal wagering if offered without a license.
The statement highlights several risks: harm to the integrity of sports and lottery games targeted by prediction markets, weakened responsible gaming measures, reduced funding for public benefit programs, and increased difficulty for law enforcement in combating tax evasion, money laundering, and racketeering.
Alignment with WLA stance
NASPL’s position echoes a recent paper from the World Lottery Association (WLA), which branded prediction markets as “unlicensed betting by another name.” The WLA warned that these markets create “increasing tension with gambling regulation and sports integrity frameworks,” and urged “urgent regulatory clarification in all jurisdictions where prediction markets offer or even plan to offer sports events or other event contracts.”
Quoting the WLA directly, NASPL noted that “if a product offers a financial return contingent on the outcome of an event—sporting, political, or otherwise—then it constitutes a wager or bet. It must be licensed and regulated as such, irrespective of the operator’s preferred label.”
Role of regulated lotteries
NASPL emphasized that its members operate under well-established public policy frameworks built on consistent legal definitions, operational transparency, financial accountability, and enforceable compliance standards. The association sees a duty to help policymakers understand the regulatory gaps created by prediction markets while protecting both the public interest and the beneficiaries who rely on lottery-funded programs.