0
0
New Bipartisan Senate Bill Would Ban Sports Bets on Prediction Markets
Can the proposed legislation make its way to the House of Representatives?
0
0
On Monday, Sens. Adam Schiff (D-Calif.) and John Curtis (R-Utah) introduced the Prediction Markets Are Gambling Act. If passed, the bill would block CFTC-regulated prediction markets like Kalshi and Polymarket from listing sports betting or casino-style contracts.
What's the Scoop?
- The Bill: The legislation seeks to bar any platform regulated by the CFTC from offering wagers on sporting events or games usually found in casinos, framing sports prediction contracts as sports bets in disguise.
- State vs. Federal: The bill arrives amid an escalating regulatory standoff between states and the CFTC, which under Chair Mike Selig has argued it holds exclusive jurisdiction over prediction markets. Nevada recently secured a temporary restraining order blocking most of Kalshi's operations in the state, while Arizona has filed criminal charges against the company for election wagering.
- A Schism: Some Republicans back federal jurisdiction and others, including Curtis and Utah Gov. Spencer Cox, insist sports betting belongs under state control. Accordingly, two competing industry organizations have emerged: the Coalition for Prediction Markets, which touts former House Financial Services Chair Patrick McHenry as an adviser, and Gambling Is Not Investing, led by former Rep. Mick Mulvaney.
- Industry Response: Kalshi pushed back on the proposed legislation, arguing a ban would only move this activity offshore to unregulated platforms. The company also characterized the bill as "motivated by casino interests" keen to contain their new competitors.
