Gaming groups urge Congress to ban prediction markets sports betting in CLARITY Act
National gaming, tribal, and labor groups are urging the US Senate to amend the CLARITY Act to clearly ban event contracts tied to sports and casino-style gaming. The groups, including the Indian Gaming Association and American Gaming Association, argue that prediction markets amount to unapproved gambling expansion and that sports betting should remain outside CFTC authority. They say the CFTC lacks the expertise and infrastructure to regulate nationwide sports wagering, especially where state and tribal systems already exist. The push comes as the CFTC, led by Michael Selig, claims exclusive jurisdiction over prediction markets and backs platforms like Kalshi and Polymarket in disputes with state gaming regulators. Supporters of the crackdown say states have lost about $1.08 billion in tax revenue since sports event contracts emerged. The issue could eventually reach the Supreme Court if federal-state conflicts continue.
