U.S. senators from both parties are moving to shut down sports betting on prediction markets such as Kalshi and Polymarket. The new bill would block these platforms, which fall under federal derivatives rules, from offering sports-style wagers and casino-style games.
What the New Senate Bill Would Do
The measure will be introduced in the U.S. Senate by Senators John Curtis of Utah and Adam Schiff of California. Their plan would prohibit Commodity Futures Trading Commission-regulated organizations from listing event contracts linked to sporting events. These contracts function under futures laws rather than state gambling licenses, but they function similarly to yes-or-no bets on sports and player statistics.
The bill would also block “casino-style” products on prediction markets. That category includes slot-style games, video poker, blackjack, roulette, craps, bingo, lottery, and similar simulations wrapped as event contracts. Sponsors say they want to stop prediction markets from evolving into full casino platforms under derivatives regulation.
Why Senators Are Targeting Prediction Markets
Backers of the bill argue that CFTC-supervised prediction markets have become a backdoor channel for sports betting that skips state rules. State-regulated sportsbooks such as DraftKings and FanDuel pay taxes and follow local consumer protection laws, while prediction markets often operate nationally from a single federal license. Lawmakers also warn that these platforms can intrude on tribal gaming rights and generate no direct revenue for state programs.
IIn states like Utah, where the majority of gaming is still prohibited, Schiff and Curtis express concern about compulsive gambling and juvenile exposure. Other members of Congress separately voice concerns over prediction markets that list contracts on war, terrorism, and national security events. When taken as a whole, these initiatives demonstrate Washington’s growing concern that event contracts may turn into unregulated betting and perhaps encourage risky behavior.
Platforms such as Kalshi and Polymarket let users trade contracts on politics, weather, pop culture, and sports under CFTC oversight. A large share of their volume comes from sports-related markets that compete with traditional sportsbooks. If the bill becomes law, these platforms would have to drop sports contracts and avoid casino-style products to continue operating as regulated prediction markets.
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