Some prediction market platforms received a warning from the Commodity Futures Trading Commission to abstain from using American-style gambling odds, according to Bloomberg, as the agency seeks to assert its jurisdiction over sports betting.
The CFTC sent letters to its regulated entities and told them to comply with the law and to not use "deceptive" practices when listing, advertising or soliciting, Bloomberg reported on Friday, citing a letter they obtained.
American-style gambling odds, also known as moneyline odds, show how much you win on a $100 bet with a plus or minus sign.
Prediction markets instead show prices in cents that directly equal the implied probability, and these convert to American odds via simple formulas — under 50¢ becomes positive odds, over 50¢ becomes negative.
The CFTC cited a study in its letter that found American-style wagers led to more risk-taking when it comes to sports betting, according to Bloomberg.
