The National Thoroughbred Racing Association (NTRA) has formally opposed the facilitation of horse racing betting, including on major events like the Kentucky Derby, by federally regulated prediction markets without explicit consent. In a letter to the Commodity Futures Trading Commission (CFTC), NTRA CEO Tom Rooney emphasized that wagering on horse racing is governed by the Interstate Horseracing Act (IHA) and related statutes, not by federal commodities law. The NTRA argues that prediction markets offering horse racing event contracts without proper authorization would violate federal law, undermine the regulated racing ecosystem, and potentially cause significant financial harm to the horse racing industry by diverting betting revenue away from traditional pari-mutuel wagering pools.

Rooney highlighted that Congress has established a comprehensive regulatory framework for horse racing wagering, requiring consent from specific entities such as host tracks before any event contracts can be offered. To date, no such consents have been granted, and the NTRA insists that prediction markets must comply with these legal requirements. The association’s concerns also stem from the fact that federally regulated prediction markets currently operate above state-level regulations and avoid state wagering taxes, which could further impact the financial stability of the horse racing sector. The NTRA’s stance underscores the unique legal status of horse racing betting compared to other sports and calls for strict adherence to existing laws to protect the industry’s economic interests.