US Gaming Industry Urges Senate to Ban Sports Prediction Markets in Crypto Bill
U.S. gaming groups are calling on Congress to ban sports and casino-style prediction markets in the upcoming crypto market structure bill. They argue these platforms bypass state laws and weaken consumer protections.
Gaming Groups’ Strong Appeal
Major organizations including the American Gaming Association, Indian Gaming Association, and Association of Gaming Equipment Manufacturers sent a letter to the Senate. They want clear language added to the Clarity Act to prohibit prediction markets tied to sports betting and casino-style games.
The groups say these platforms have fueled the largest expansion of gambling in U.S. history without proper voter approval or legislative authorization.
Main Concerns Highlighted
The letter raises several key issues:
- Prediction markets offer nationwide sports betting by calling it “sports event contracts” and a federally regulated product.
- They bypass state and tribal gambling laws.
- Platforms provide weak responsible gaming protections, especially for younger users.
- They wrongly present gambling as investments.
The industry also stated that the CFTC lacks the expertise and infrastructure to regulate sports wagering.
Clarity Act Update and Growing Scrutiny
The Senate Banking Committee recently advanced the Clarity Act. The bill now awaits a full Senate vote.
Meanwhile, prediction markets face rising pressure. Senators introduced the Prediction Markets Are Gambling Act, and several states have acted against platforms like Kalshi and Polymarket. The CFTC is defending its role while proposing new rules.
Market Performance
Despite the challenges, the sector remains strong. In May, Kalshi recorded $16.81 billion in volume, while Polymarket posted $7.08 billion.
