have decided not to do so. Some of that might be ideological, while another might be bona fide policy choice. Te other part is the change of administration. CFTC has had one commissioner in an interim capacity. And we're only now seeing nominations, the nominee for the Chair of the CFTC, Permanent Chair of the CFTC, come forward. So there has been a leadership vacuum at the CFTC anyway, which is not abnormal when it comes to the change of administration.
However, the combination of a pro-prediction markets inclination within the Trump administration and a transition period that's led to a vacuum of permanent leadership in the CFTC, has created a favourable environment for prediction markets to expand their offerings into sports and different types of sports trading going forward.
James Marrison: How about liability? Tese companies that offer prediction markets are registered with the CFTC? So if someone games the system or cheats somehow, what is their liability?
James Kilsby: I'm not sure about the liability, but there are rules and regulations in place to prevent insider trading and establish integrity of commodity exchange markets. So those apply in the case of prediction markets. Anti-money laundering obligations also apply. Tere is regulation in this area, but it’s not gaming regulation. It's not sports betting regulation as we know it and as it's applied on the state level. So there are dedicated responsible gaming rules, however, many of the things that are baked into state regulation of sports betting by default are not expressly in place at the CFTC level.
James Marrison: I watched an interview with the CEO of DraftKings recently. He didn't, beyond the regulatory side of things, seem that worried about the possibility that prediction markets would make a dent in his business in terms of volume at least.
James Kilsby: I’ve spoken about how the industry is pushing back and state regulators are doing the same. Tat situation has evolved and is evolving quite quickly where DraftKings, FanDuel, Fanatics, PrizePicks and a handful of other sports
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