Del. Paul Krizek’s recent editorial in the Richmond Times-Dispatch on the spread of prediction markets in Virginia is exactly right. For years, Virginia has worked deliberately to build a responsible, tightly regulated gaming sector that delivers real economic value to the Commonwealth. The results speak for themselves: the industry supports thousands of jobs, anchors major local investments, and fuels community development across the state.
Since legal sports betting launched in 2021, licensed operators have handled billions in wagers — generating significant tax revenue that directly supports schools, transportation, and other essential public services.
But the rapid expansion of so-called “prediction market” platforms threatens to undermine that progress and the programs that depend on it.
Over the last year, these companies have begun offering sports wagers nationwide without obtaining a single state license, insisting they are not sportsbooks but something entirely different. They describe themselves as “financial exchanges,” yet they allow users to stake money on sporting outcomes. If that looks and functions like sports betting, that’s because it is sports betting. Their own marketing even claims users can “bet legally in all 50 states.”
The problem is straightforward: these platforms are operating under federal commodities rules designed for oil, metals, and agricultural futures — not gambling. The Commodity Futures Trading Commission was never intended to oversee betting markets. Yet these companies are asking the CFTC to bless a model that mirrors a sportsbook while sidestepping the regulatory standards and tax obligations that licensed operators follow in Virginia.
Legal sportsbooks don’t get exemptions. They’re licensed, audited, required to offer responsible gaming tools, and held to Virginia’s high consumer protection standards. They invest in the communities where they operate and return a fair share to taxpayers. That is the framework Virginia deliberately established.
Prediction markets are looking for a shortcut — profiting from Virginia players without Virginia oversight. No license. No consumer protections. No contribution to state revenue. It’s exploiting a loophole, plain and simple.
Some platforms have even run ads claiming they provide legal sports wagering everywhere in the country. Virginia never authorized that. Our gaming laws were built through years of public debate, legislation, and regulation. That process can’t be erased because a tech company decides to relabel bets as “contracts.”
This isn’t about stifling new ideas. It’s about fairness and accountability. Every operator in this space should be playing by the same rules. When one sector bypasses the system, it disadvantages lawful operators and exposes consumers to unnecessary risks. If these companies want to take bets in Virginia, they should follow Virginia law — not try to route around it through a federal workaround.
Ultimately, this is about who decides gambling policy in our state. That authority belongs to Virginians, not federal regulators and not speculators on Wall Street.
Virginia has built a transparent and effective regulatory framework. We should not let outside entities redefine gambling to suit their business models. As new leaders take office, they should uphold one fundamental principle: Virginia sets the rules in Virginia, and anyone taking bets here must follow them.
Mr. Comer is a member of the Virginia Lottery Board and Chairman of its Gaming Compliance Committee. The views expressed in this letter are his own and do not represent an official position or opinion of other Board Members, The Virginia Lottery, or any other Virginia state government official and/or agency.
Company 24 donates to Casey’s Backpack
In response to Pollack’s complaint about Warner coverup
Another Justice Department cover-up?
Concerns about FirstEnergy’s transmission tower rebuild between Luray and Sperryville
Local teachers strive to protect students from federal funding cuts
Thanks to Community Works 4Page for healthcare panel discussion
How federal cuts to healthcare affect you, your family, and your friends
Call for public involvement in deciding how to use the county’s Goodrich Road property
Be the first to comment