Genius Sports calls for sporting integrity protections in event contracts market

Genius Sports has highlighted the need to include sporting integrity in discussions surrounding sports event contracts in a letter to the Commodity Futures and Trading Commission (CFTC).  

The letter was sent on 27 May and addressed to CFTC secretary Christopher Kirkpatrick. 

In it, Genius Sports equated sports event contracts to the state-regulated sports betting markets across the US. 

The data firm stressed that data and sporting integrity is a “critical component” for the CFTC to monitor as the event contracts space continues to grow. 

The letter read: “Genius Sports has watched with interest as DCM-offered (designated contract markets) sports event contracts continue to proliferate and as courts and various regulators continue navigating a range of jurisdictional issues.  

“Without attempting to solve in this letter the jurisdictional considerations underway, we do believe that it is practical to observe that the sports gaming taking place on state-licensed sports markets (traditionally referred to as sports betting) is (in many respects) equivalent to DCM-listed sports event contracts.  

“Following from that straightforward observation, we also believe that solving for risks related to data and sports integrity is a critical component to address for CFTC/DCM-listed contracts.  

“In parallel, we agree with concerns already put forward by sports organisations to the CFTC that these risks will increase exponentially if and when in-play and player proposition or other individual performance-based markets are offered on DCMs as sports event contracts in due course.” 

Genius Sports provides data monitoring services for several major sports leagues across the US, including the NFL, NBA and WNBA. 

The sports technology firm highlighted the event contracts space as “an area of significant potential growth and innovation” and welcomed the CFTC’s continued regulation of the vertical. 

The letter continued: “We are confident that a federal regulatory approach to sports markets, led by the CFTC, can foster continued growth and innovation within sports event contracts in a responsible way, and we want to support the next steps by offering and sharing our learned experiences and expertise with the agency.  

“We believe that it is critical – as DCM-offered sports event contracts markets grow – for the CFTC to consider and evaluate the protections unique to the state-based sports markets regulatory regimes, especially protections around sports integrity. 

“The CFTC should take advantage of the opportunity to leverage and incorporate the unique features embedded within the state-based sports markets’ regulatory regimes, particularly those related to customer protection and sports integrity, to ensure these contracts are not readily susceptible to manipulation.” 

Genius Sports also offered its expertise to the CFTC going forward, volunteering to liaise with the regulator on how sporting integrity could be upheld in sports event contracts. 

“We have a long-standing experience working within regulated sports markets, supporting all participants in the ecosystem in promoting compliance, upholding integrity, and enabling innovation through technology,” the letter concluded.

“We welcome the opportunity to engage further with the CFTC, participate in roundtables, offer thoughts in meetings with staff and generally be proactive in contributing our expertise to this important policy discussion.” 

Genius Sports reported revenue of $144m (£106.4m) for the first quarter of 2025, representing a 20.3% year-on-year increase.  

Last month, the CFTC dropped its case against predictions market platform Kalshi, bringing an end to a legal dispute which began in November 2023.

Former commissioner of the CFTC Brian Quintenz, who President Donald Trump has nominated to take over as CFTC chair, vowed to step down from his role on Kalshi’s board of directors should he be appointed to the role.