BOISE, ID — 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, arguing the issue remains under state control.
According to a press release issued March 23, Labrador and other attorneys general are opposing a position taken by the Commodity Futures Trading Commission (CFTC), which asserts that certain forms of sports wagering fall under federal regulation.
The dispute centers on online platforms that began offering what they describe as “event contracts” in early 2025, allowing users to wager on sports outcomes such as game scores and player performance. The platforms have marketed the activity as sports betting, and participation has grown, including more than $1 billion reportedly wagered on the Super Bowl in February 2026.
For much of 2025, the CFTC had not formally approved or endorsed these contracts and warned that state laws could still apply. However, following a leadership change, the agency filed a legal brief supporting the platforms, arguing that the contracts qualify as financial instruments known as “swaps,” which fall under its exclusive jurisdiction.
In response, 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 financial crisis. 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.
The coalition’s legal brief also raises concerns about federal overreach, stating that agencies do not have special authority to expand their own jurisdiction and that major policy changes require explicit congressional approval. Additionally, the states argue the CFTC lacks experience in regulating gambling compared to state governments, which commonly enforce licensing requirements, age restrictions, and consumer protections.
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 platforms. The outcome could determine whether states retain authority over sports betting or whether certain forms of wagering fall under federal regulation.
