Idaho Joins Multi-State Challenge to Federal Sports Betting Claim

Coalition of 39 states argues sports betting regulation remains under state control.

Mar. 24, 2026 at 12:46am

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Idaho Attorney General Raúl Labrador has joined a coalition of 39 states challenging a federal agency's claim that it has authority over sports betting. The dispute centers on online platforms that began offering 'event contracts' allowing users to wager on sports outcomes, which the Commodity Futures Trading Commission (CFTC) now claims fall under its jurisdiction as financial instruments. The states argue that gambling regulation has traditionally been handled at the state level and that any shift in that authority would require clear direction from Congress.

Why it matters

This case could determine whether states retain authority over sports betting regulation or if certain forms of wagering fall under federal control. The outcome has significant implications for the future of the rapidly growing sports betting industry and state-level gambling laws.

The details

The CFTC has asserted that the online 'event contracts' qualify as financial instruments known as 'swaps,' which fall under its exclusive jurisdiction. However, the coalition of states contends that Congress did not grant the CFTC authority to regulate sports betting when it expanded oversight of financial markets after the 2008 crisis. The states argue that gambling regulation has traditionally been a state-level responsibility and that any shift in that authority would require explicit approval from Congress.

  • In early 2025, online platforms began offering 'event contracts' allowing users to wager on sports outcomes.
  • In February 2026, more than $1 billion was reportedly wagered on the Super Bowl through these platforms.
  • Following a leadership change, the CFTC filed a legal brief in 2025 supporting the platforms and claiming jurisdiction over the 'event contracts'.

The players

Raúl Labrador

The Attorney General of Idaho, who has joined a coalition of 39 states challenging the CFTC's claim of authority over sports betting.

Commodity Futures Trading Commission (CFTC)

A federal agency that has asserted it has jurisdiction over certain online sports betting platforms, claiming their 'event contracts' qualify as financial instruments known as 'swaps'.

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What’s next

The case is currently before the U.S. Court of Appeals for the Ninth Circuit, where Nevada is seeking to enforce its gambling laws against the online platforms. The outcome of this case could have far-reaching implications for the future of sports betting regulation in the United States.

The takeaway

This dispute highlights the ongoing tension between state and federal authority over gambling, as well as the challenges of regulating emerging online betting platforms. The resolution of this case could set an important precedent for how sports betting is governed in the years to come.