(AsiaGameHub) – A bipartisan group of US senators has introduced legislation aimed at prohibiting ‘casino-style games’ and sports-related contracts on prediction market platforms, according to various reports.
The Wall Street Journal (WSJ) noted that the bill would apply to entities overseen by the Commodity Futures Trading Commission (CFTC), including prediction platforms like Kalshi and Polymarket. NBC News has also confirmed the bill’s introduction to the US Senate.
Senators Adam Schiff and John Curtis are co-sponsoring the measure, marking the first bipartisan Senate effort to regulate the prediction market sector. They contend that these markets should be managed at the state level.
According to the WSJ, Schiff remarked: “The CFTC is currently authorizing and even encouraging the growth of these markets. Congress must act to shut down this loophole, which bypasses state consumer protections, infringes on tribal sovereignty, and generates no public tax revenue.”
If enacted, the legislation would prevent prediction markets from hosting ‘casino-style games’ such as video poker, slots, blackjack, and bingo on their sites.
Curtis added: “A significant number of young people in Utah are being introduced to addictive sports wagering and casino-style contracts that ought to be under state oversight, rather than federal authority.”
A divisive industry topic
Prediction markets show no signs of slowing down, quickly becoming a polarizing subject within the iGaming sector as sports betting and online casinos expand worldwide.
While certain operators, including FanDuel and DraftKings, have incorporated this vertical into their business, other industry figures have been vocal in their criticism.
Earlier this month, Entain CEO Stella David argued that prediction markets facilitate underage gambling in the US. She pointed out that many CFTC-regulated platforms allow users as young as 18, while most states set the legal gambling age at 21.
David stated: “When individuals engage with sports prediction markets, the experience is identical to sports betting in form and function. There should be no confusion: it is sports betting.
“In the US, the legal age is 21, yet 18 to 21-year-olds are accessing these markets, often in states where online sports betting is not even regulated.”
Some US states are already taking legal action against these platforms. For example, a Nevada judge recently issued a 14-day injunction preventing Kalshi from offering sports event contracts in the state.
Global reactions vary; New Zealand recently moved to ban such platforms, and a judge in Buenos Aires, Argentina, has prohibited Polymarket. Conversely, Liberia has established a regulatory framework to authorize prediction markets.
Adam Greenblatt, CEO of BetMGM—the joint venture between Entain and MGM Resorts International—contends that prediction markets are currently operating illegally within the US.
Greenblatt commented: “Our stance is firm and aligns with nearly 40 state attorneys general, our regulators, and tribal partners. Under current law, sports prediction markets are effectively illegal sports wagering.
“Operators in this space are not required to provide the consumer protections that licensed sports betting companies do. They lack responsible gaming standards, self-reporting requirements for compliance issues, and obligations regarding whistleblowing or information sharing.”
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