A proposal in the US Senate aims to classify prediction markets as gambling, as lawmakers respond to rising participation in betting tied to future events.
The Prediction Markets are Gambling Act, backed by Utah Republican Sen. John Curtis and Democratic senators Adam Schiff and Catherine Cortez Masto, would prohibit organizations from offering contracts tied to sports, athletic competitions, and casino-style games.
Participation in prediction markets has grown. A survey by The Siena Research Institute and St. Bonaventure University found that 27% of Americans hold active accounts, with usage increasing over time.
Curtis described the measure as focused in scope. “This is an issue that’s just kind of coming into consciousness for people,” Curtis said. “My other co-sponsors and I were not really trying to solve all of the problems with predictive markets. We’re narrowing in on a slice of it with this bill.”
Federal Focus Intensifies
Curtis said limiting these markets would not significantly harm the economy while addressing risks tied to gambling.
”Anybody that looks at gambling knows it’s a regressive tax, and so the impact of us not controlling this is far more detrimental,” Curtis said.
He added that lawmakers are preparing further action.“What you’re going to see from the Senate is not a short list of bills dealing with these markets,” Curtis said. “It’s very clear to me and my colleagues that this is important, that we jump on quickly.”
Another proposal, the Public Integrity in Financial Prediction Markets Act of 2026, would prevent government officials from using nonpublic information to trade prediction contracts. Curtis and Schiff support the bill alongside its sponsor, Sen. Elissa Slotkin, and Sen. Todd Young.
Utah Tightens Gambling Rules
The federal effort aligns with Utah’s strict stance on gambling. The state has maintained a broad ban for over a century, though prediction platforms have tested its limits.
Lawmakers recently passed House Bill 243, clarifying that proposition bets fall under the state’s gambling definition. The measure followed earlier efforts to address uncertainty around specific wager types.
Utah already prohibits sports betting, with operators using geolocation to block access. Some residents have attempted workarounds, though major platforms remain inaccessible.
Attorney General Derek Brown has supported stronger enforcement. In August, he joined 49 attorneys general urging federal action against offshore gambling. In February, he warned about its personal risks, writing that you can “bet on him” taking action against gambling.
“What starts as a simple tap quietly takes over a person’s life, trapping them until their world shrinks down to the next gamble. Its grip tightens with every tap,” Brown wrote
Legal Challenges Increase
Utah has also become a center for lawsuits targeting sweepstakes sites, with more than 100 cases filed nationwide and several originating in the state.
Its laws allow individuals to recover twice their losses from illegal gambling and define gambling broadly as any contest involving value and chance, shaping enforcement and litigation.
Curtis said he expects continued legislative efforts even if the bill does not pass this session.
Source:
“Utah Sen. John Curtis wants to legally define prediction markets as gambling”, upr.org, April 20, 2026
The post US Lawmakers Move to Define Prediction Markets Gambling first appeared on RealMoneyAction.com.