Iowa attorney general joins coalition to advocate for state control over sports gambling

May 5, 2026 - 03:24

Iowa Attorney General Brenna Bird has signed onto a coalition of 42 attorneys general calling on federal regulators to recognize state control over sports gambling markets. The group sent a letter to the Commodity Futures Trading Commission, arguing that unregulated prediction markets threaten state oversight and consumer protections.

The coalition warns that event-based contracts, which allow bets on game outcomes and player statistics, operate outside established state gambling frameworks. These prediction markets, often run by private platforms, bypass licensing requirements and age verification measures that states enforce for legal sportsbooks.

Bird and her colleagues contend that the CFTC should not authorize such contracts under federal commodities law. They say doing so would undermine decades of state authority to regulate gambling within their borders. The letter emphasizes that states already have robust systems to oversee sports betting, including tax collection and problem gambling resources.

Iowa legalized sports wagering in 2019, with the state's Racing and Gaming Commission regulating both retail and mobile betting. The coalition argues that unregulated prediction markets create an uneven playing field, where operators avoid state oversight while offering similar products.

The attorneys general also raise concerns about market manipulation and consumer harm. Without state supervision, they say, bettors lack recourse for disputes or fraud. The letter asks the CFTC to reject any pending applications for event-based contracts and to clarify that such products fall under state gambling laws.

Bird's office confirmed her participation in the effort, which includes both Republican and Democratic attorneys general from across the country. The coalition's stance aligns with broader pushback from state regulators who see prediction markets as a loophole in federal commodities rules.