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Prediction Markets Are Warned by CFTC Over U.S.-Style Gambling Odds
['Updated On', 'August', 'Kayode Kehinde', 'Casino', 'Igaming Expert']
| Iredell Free News
The U.S. Commodity Futures Trading Commission has warned some prediction market platforms against using U.S.-style gambling odds, The Block reported on Aug. 7, citing Bloomberg News.
The U.S. Commodity Futures Trading Commission (CFTC) has warned some prediction market platforms not to use U.S.-style gambling odds, according to a report by The Block on Aug. 7, citing Bloomberg News.
The U.S.-style odds which are also called moneyline odds, use minus or plus signs that show how much a bettor would win on a $100 bet.
By contrast, prediction markets show probability directly as a cents price, which can be converted into U.S.-style odds through a simple calculation: below 50 cents becomes plus odds, while above 50 cents becomes minus odds.
Bloomberg reported that the CFTC cited research in the letters showing the U.S.-style betting format encourages risky bets in sports betting.