Two Congressmen are taking legislative action to prevent prediction markets from offering sports event contracts, adding to the range of legislative efforts to place restrictions on the products.
Sens. Adam Schiff and John Curtis have introduced legislation that would ban prediction markets from delivering sports event contracts in markets across the country. The bill also aims to prohibit prediction markets from offering “casino-style games” that resemble slots and table games.
Schiff and Curtis’ measure takes direct aim at the Commodity Futures Trading Commission (CFTC) and its regulatory authority over prediction markets and event contracts. The lawmakers argue that prediction markets and their offerings should be state-regulated, compared to CFTC regulation under the purview of the Commodity Exchange Act.
“Sports prediction contracts are sports bets — just with a different name,” wrote Schiff in a press release. “And yet, these contracts have been offered in all 50 states in clear violation of state and federal law.”
CFTC-registered platforms would need to pull sports contracts
Under Schiff and Curtis’ Prediction Markets Are Gambling Act, all CFTC-registered prediction markets such as Kalshi and Polymarket would have to pull sports and casino-style event contracts from their platforms.
“Rather than enforce the law, the CFTC is greenlighting these markets and even promoting their growth,” added Schiff. “It’s time for Congress to step in and eliminate this backdoor, which violates state consumer protections, intrudes upon tribal sovereignty and offers no public revenue.”
Schiff and Curtis said a major motivation for their bill is to attempt to protect young people and the public from gambling-related harm.
“Too many young people in Utah are getting exposed to addictive sports betting and casino-style gaming contracts that belong under state control, not under federal regulators,” said Curtis. “The Prediction Markets Are Gambling Act is about respecting states’ authority, protecting families, and keeping speculative financial products out of spaces where they don’t belong.”
Kalshi says bill ‘motivated by casino interests’
Curtis and Schiff’s bill has already garnered a response from Kalshi, which currently offers sports trading nationwide except for Nevada, where it is currently subject to a temporary restraining order (TRO).
“Banning sports on regulated prediction markets would just push this behavior offshore, where no regulation exists,” said Kalshi Head of Communications Elisabeth Diana in a statement about the latest federal bill. “It’s clear this bill is motivated by casino interests that are threatened by competition. They’re more worried about protecting their monopolies than protecting consumers.”
Kalshi is taking this stance after it was ordered to pull its sports event contracts in Nevada for at least 14 days by a District Court judge, who granted the Nevada Gaming Control Board’s request for a TRO to block Kalshi from offering certain event contracts. Nevada’s gaming regulator filed a lawsuit in state court in February, asking the judge to prevent Kalshi from offering sports contracts in the state.
The request and suit came after the regular sent Kalshi a cease-and-desist order in 2025.
American Gaming Association calls bill ‘critical step’
Meanwhile, the American Gaming Association hailed the introduction of the bill as an important signal that Congress did not intend for gaming to be regarded as a federal commodity, and that such event contracts should fall under state and tribal gaming laws.
“The introduction of the Prediction Markets Are Gambling Act is a critical step in reaffirming Congressional intent that all gaming, including sports betting, is not a federal commodity, and is governed by state and tribal law,” wrote the AGA on X.
“The AGA strongly supports this bipartisan effort, led by Senators Schiff and Curtis, to uphold state and tribal sovereignty and protect consumers by ensuring sports and gambling-related contracts are prohibited.”
Several Congressional prediction market bills
Schiff and Curtis add to a growing list of lawmakers taking action against prediction markets.
Last week, Sen. Chris Murphy and Rep. Greg Casar introduced the Banning Event Trading on Sensitive Operations and Federal Functions (BETS OFF) Act. The piece of legislation aims to ban prediction markets from offering event contracts on government actions, terrorism, assassinations and wars.
Reps. Blake Moore and Salud Carbajal’s Event Contract Enforcement Act takes a similar approach by banning event contracts involving elections and government activities. It also allows states to “exempt themselves from the prohibition on gaming contracts.”
Meanwhile, the End Prediction Market Corruption Act proposes a ban on government officials from using their access to insider information to trade on prediction markets. And New York Rep. Ritchie Torres filed a similar bill that bans elected officials from trading.
MLB and NHL partner with prediction market platforms
Schiff and Curtis introduced their bill as MLB became the latest pro sports league to begin working with prediction market platforms.
America’s oldest professional sports league secured a partnership with Polymarket last week. The multiyear deal makes Polymarket the league’s exclusive prediction market partner and provides the prediction market with access to MLB’s trademarks and logos.
MLB also signed a memorandum of understanding with the CFTC that focuses on information-sharing concerning prediction markets and sports event contracts.
The NHL also has a partnership with Polymarket, as well as a separate arrangement with Kalshi.
