US senators Adam Schiff and John Curtis have filed a bipartisan bill which would prohibit prediction markets from listing sports event contracts.
The Prediction Markets Are Gambling Act would prohibit any Commodity Futures Trading Commission-licensed entity from “listing a contract that closely resembles a sports bet or a casino-style game”.
Californian Democrat Schiff and Utah Republican Curtis added that the bill would reinforce “Congress’ original intent that the Commodity Exchange Act does not permit sports gambling, and removes any ambiguity in the statute”.
Schiff and Curtis, who both hail from states without forms of legalized sports betting, said prediction markets were undermining regulatory regimes, especially for the tribal groups across the US.
Utah’s Attorney General (AG) Derek Brown and Governor Spencer Cox have both hit out at prediction markets this year, claiming the offering is allowing young people to gamble in the state.
Prediction markets have continued to grow in popularity and size since the US presidential election in November 2024.
Sports event contracts have been slammed by state-level gaming regulators, including in Arizona where its AG was the first to file criminal charges against the group.
Kalshi as also been forced to pull sports event contracts from Nevada for 14 days since 20 March following the Nevada Gaming Control Board’s request for a TRO (temporary restraining order).
Traditional online sports betting operators have also expanded into the vertical, including FanDuel, DraftKings and Fanatics.
Schiff said: “Sports prediction contracts are sports bets – just with a different name. And yet, these contracts have been offered in all 50 states in clear violation of state and federal law.
“Rather than enforce the law, the CFTC is greenlighting these markets and even promoting their growth.
“It’s time for Congress to step in and eliminate this backdoor which violates state consumer protections, intrudes upon tribal sovereignty and offers no public revenue.
“I’m proud to partner with Senator Curtis to put a stop to these illegal markets.”
Curtis added: “Our bipartisan legislation clarifies regulatory jurisdiction, ensuring that states can maintain their authority over sports betting and casino gaming.
“The Prediction Markets Are Gambling Act is about respecting states’ authority, protecting families and keeping speculative financial products out of spaces where they don’t belong.”
A Kalshi statement read: “Banning sports on regulated prediction markets would just push this behaviour offshore, where no regulation exists.
“It’s clear this bill is motivated by casino interests that are threatened by competition. They’re more worried about protecting their monopolies than protecting consumers.
“Sports trading on regulated prediction markets offer a fairer choice to consumers, with no house that restricts winners and hooks people the more they lose.
“Tens of millions of consumers use regulated predictions markets for this very reason. We should let competition run its course instead of protecting monopolies.”
The post Bipartisan bill to ban sports event contracts filed first appeared on EGR Intel.
California’s Adam Schiff and Utah’s John Curtis reach across the aisle to submit bill which would prohibit CFTC-licensed entities from listing such markets
The post Bipartisan bill to ban sports event contracts filed first appeared on EGR Intel.