Federal and state regulators, tribal gaming groups, and lawmakers are intensifying scrutiny of sports-related prediction markets, aiming to limit contracts tied to sporting events and casino-style outcomes. The Indian Gaming Association (IGA) has joined a bipartisan Senate effort to strengthen oversight and reaffirm local authority over gambling products.
Bipartisan Legislation Introduced
Senators Adam Schiff (D-Calif.) and John Curtis (R-Utah) introduced the Prediction Markets Are Gambling Act, amending the Commodity Exchange Act to prohibit entities registered with the Commodity Futures Trading Commission (CFTC) from offering contracts linked to sports betting or casino-style gambling. The bill has been referred to the Senate Agriculture Committee.
Schiff said, “It’s time for Congress to step in and eliminate this back door which violates state consumer protections, intrudes upon tribal sovereignty and offers no public revenue.” Curtis added the legislation is focused on “respecting states’ authority, protecting families and keeping speculative financial products out of spaces where they don’t belong.”
David Bean, chairman of the IGA, noted, “It will reaffirm existing tribal and state government authority to regulate sports betting, limit online gambling, or in some cases, continue to prohibit all forms of gambling. The bill will also quiet the chaos and federal overreach that the CFTC is fostering.
Other than the growing number of court decisions siding with tribes and states, prediction market platforms have seen no accountability and no oversight, as they disregard clearly established regulations while exposing consumers to unchecked gambling. We look forward to working with leaders in Congress to hold these platforms accountable to protect consumers, sports integrity, and tribal and state sovereignty.”
The American Gaming Association called the bill “a critical step to uphold state and tribal sovereignty and protect consumers.”
Federal vs. State Authority
The CFTC’s 2011 regulations prohibited registered entities from offering contracts that “involve, relate to, or reference terrorism, assassination, war, gaming, or an activity that is unlawful under any State or Federal law.” In January 2025, the agency dropped federal court appeals challenging prediction markets and paused enforcement. Chairman Michael Selig has promoted online sports wagering through these markets, filed briefs opposing state and tribal restrictions, and announced plans to relax existing regulations.
States have challenged platforms offering sports contracts. Nevada secured a temporary restraining orderblocking Kalshi, and Arizona filed criminal charges alleging unlicensed gambling. These actions highlight tension over whether federal or state authorities should govern sports-related contracts.
Industry Safeguards
Prediction market operators are adding controls to prevent abuse. Kalshi implemented screenings to block politicians and sports-affiliated individuals from trading, and Polymarket restricted trades based on stolen, confidential, or manipulative information. Kalshi also joined other operators, including Crypto.com and Coinbase, in forming the Coalition for Prediction Markets (CPM) to coordinate industry practices.
Sports-related contracts account for significant platform activity, meaning federal restrictions could require platforms to remove or restructure offerings under state frameworks. With the IGA backing federal legislation, the focus is now shifting to who holds authority over these markets, a question likely to shape the sector’s future.
Source:
“IGA Supports ‘Prediction Markets Are Gambling Act’”, indiangaming.com, March 24, 2026
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