Senators Reveal Bipartisan Bill to Outlaw Sports Prediction Markets
U.S. Senators Adam Schiff and John Curtis plan to introduce legislation to ban American prediction market platforms, such as Polymarket and Kalshi, from offering sports-related markets, labeling them as unlicensed sports betting. The bill would prohibit any entity registered with the Commodity Futures Trading Commission (CFTC) from listing contracts that function like sports bets or casino-style games and affirms that the Commodity Exchange Act does not permit sports gambling. States have increasingly sued prediction market platforms for allegedly violating state gambling laws, with some pursuing criminal charges and temporary bans. The platforms argue that their markets fall under federal, not state, jurisdiction due to their event contract structure, but many judges disagree. Critics, including politicians across the political spectrum, argue these platforms contribute to addiction and societal harm, especially among young people. Kalshi claims the bill would drive activity offshore and serve casino interests. Over 80% of Kalshi’s trading volume comes from sports-related markets. The dispute between states and the CFTC continues and could ultimately be resolved by the Supreme Court.
