Gaming operators, tribal nations, and casino unions are teaming up to block prediction markets from turning into another way to bet on sports. The coalition is urging Congress to add clear limits to a major cryptocurrency bill. The letter argues that platforms like Kalshi should not offer sports-style wagers as “event contracts.”
Casinos, Tribes, and Unions Worry About Prediction Markets
In a joint letter reported by Semafor, the AGA, the IGA, and major unions raised alarms. They say prediction markets have “fueled the largest expansion of gambling in U.S. history over the past 18 months.” They note this growth came “without voter approval or legislative authorization.”
The group argues sports-related contracts on platforms like Kalshi and Polymarket are “indistinguishable from legal spolrts betting.” However, they say these products operate outside state rules and tribal compacts.
UNITE HERE represents more than 100,000 casino and hotel workers. The union warns these products could threaten jobs by shifting wagers away from regulated sportsbooks and tribal casinos. Union president Gwen Mills said prediction markets conducting illegal sports betting now threaten workers’ livelihoods.
She said these markets violate Tribal sovereignty and state laws across the country. She urged Congress to “ban prediction markets from conducting sports betting and casino-style games.”
Using Crypto Legislation to Rein In Sports Contracts
The coalition wants to add new language to a federal crypto bill already moving through Congress. In their letter, the AGA and IGA urge lawmakers to “reaffirm a simple principle: sports betting falls outside the CFTC’s remit and cannot be offered through prediction market platforms.” The groups argue that the CFTC was never meant to oversee gambling and should not approve sports wagers by calling them derivatives.
Lawmakers from both parties have introduced the Prediction Markets Are Gambling Act. The bill would label many yes‑or‑no sports contracts as betting, not financial products.
Industry groups want that bill, or similar language, added to the larger crypto package. The goal is to keep sports wagering clearly under state and tribal regulators, not a derivatives agency.
Kalshi is central to this fight because it operates as a CFTC‑regulated prediction market while listing contracts tied to sports results.The company describes its markets as “financial instruments” that help users hedge real‑world risks and comply with derivatives law. Tribes and gaming groups counter that, whatever the label, users are still betting on games.
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