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Idaho sports betting is not a thing, and dare we say, will never be a thing. Out of the 11 remaining states without a legal sports betting market, Idaho is one of the most likely to ever change its tune.
Why? Culture. Idaho is staunchly conservative, partly because of its big population of Latter Day Saints (or Mormons, as some call them). Outside Utah, the second-largest number of Mormons live in Idaho, and they have influence. So in Idaho, legal sports betting is a moral issue, and one the religious folks won’t back down from easily.
But that doesn’t mean sports betting isn’t going on in Idaho. It is, and probably in mass. First, there were popular offshore sportsbooks that work anywhere inside the state. But in the last year, we’ve also seen an explosion of prediction markets too.
Kalshi and Polymarket led the way early on, but now even the popular sports betting apps are getting into the industry. DraftKings, FanDuel, and other major names have released prediction products in the last few months. And get this, they all work inside Idaho.
This has become at the behest of Idaho lawmakers, of course. They, and many other states, think prediction markets is just sports betting in a new fancy wrapper. And many of these states have joined together to challenge the Commodity Futures Trading Commission (who’s supposed to regulate this stuff). Keep reading and we’ll explain the whole situation!
CFTC Under Fire From 39 States
39 states — that’s how many are now in cahoots with each other against the CFTC. Idaho is one of those states. They’re arguing that the CFTC is infringing on their state rights.
This can get complicated so let’s try to simplify up the issue neatly. The CFTC is claiming it has exclusive authority over these prediction platforms because they fall under derivatives trading — not gambling. You’ve probably heard the term, “sports contracts” — not bets. Well, it’s because of how these products are categorized.
Anyway, states like Idaho don’t like this agency to have a say over what is and isn’t allowed in their state. So they’ve joined forces in an effort to get federal courts to reject the CFTC’s assertion that it holds exclusive jurisdiction over activities like sports betting.
Don’t think Idaho is just another state in this complaint. No, they’re leading from the front. Take this quote from Idaho Attorney General Raul Labrador:
“An unelected federal agency claims it discovered hidden authority in fifteen-year-old financial reform laws to override state gambling laws nationwide. Congress never granted that power, and Idaho will continue defending our right to regulate gambling as we see fit.”
The legal fight had been escalating for a year before the 39 states joined forces. It started with Nevada going after platforms like Kalshi, trying to enforce its own gambling laws. The CFTC stepped in on the other side, backing the platforms. Now, Idaho and dozens of other states have jumped in as well, filing a brief supporting Nevada and arguing that this is a clear overreach by the federal government.
Zoom out, and this is a pretty big deal. It’s not just about prediction markets anymore. It’s about who actually controls gambling laws in the United States — the states, or a federal agency. Idaho has made it clear where it stands, and they’re not backing down.
What The States Are Arguing Against
So what are these 39 states actually saying? It really comes down to a few arguments. Let’s break each down.
First of all, they’re arguing the CFTC is overstepping. Federal agencies don’t just get to wake up one day and expand their own power, especially into areas that have always been handled by the states. Gambling falls squarely into that category, they say. If Congress didn’t clearly give them that authority, then they don’t have it.
Second, the states are saying this needs to be explicit. If you’re going to take something like gambling regulation — which has always been a state-level issue — and hand it over to a federal agency, Congress has to spell that out clearly. The coalition says that never happened when the CFTC was given authority over “derivatives markets.”
Third, and we’ve hinted at this, ain’t America a country about state rights? Heck, some would argue the Civil War was fought over the issue. And well, state rights are being run over on this topic as is.
Lastly, regulation is lacking at the federal level. States already have systems in place — licensing, age verification, responsible gaming rules, and integrity checks. The CFTC doesn’t deal with any of that. They regulate financial markets, not gambling behavior. So states are basically asking: why should an agency with zero background in this space suddenly control it?
All of this is now sitting with the Ninth Circuit Court of Appeals. They will decide who’s in the right and who’s in the wrong — and everyone is waiting in anticipation.
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