Gate News reports that on March 23, two U.S. senators from different parties plan to introduce a bill this Monday to ban contracts related to professional and college sports events on prediction market platforms regulated by the U.S. Commodity Futures Trading Commission (CFTC). California Democratic Senator Adam Schiff stated that these markets currently bypass state consumer protection laws, infringe on tribal sovereignty, and do not generate public revenue, and Congress has a responsibility to intervene.
The bill also seeks to prohibit platforms from offering “casino-style games,” including slot machines, blackjack, video poker, and bingo. Utah Republican Senator John Curtis emphasized that state governments should regulate these gambling activities that could lead to youth addiction, rather than federal agencies directly managing them.
Platforms like Kalshi and Polymarket, which offer contracts related to politics, weather, and pop culture, mainly focus on sports events, directly competing with betting sites like FanDuel and DraftKings. Polymarket has established data partnerships with Dow Jones to provide official prediction markets for MLB, but some professional sports leagues remain cautious about prediction markets, concerned about potential game manipulation and insider trading.
Recently, Nevada issued a temporary restraining order against Kalshi, prohibiting it from offering contracts on sports, elections, and entertainment events. Arizona also filed criminal charges against Kalshi’s parent company, accusing it of operating illegal betting services without proper licensing. Meanwhile, Massachusetts and Michigan have filed lawsuits against Kalshi, and Polymarket is attempting to block state-level gambling regulation enforcement in Michigan.
The CFTC maintains that it has exclusive jurisdiction over commodity derivatives markets, including event contracts, and has submitted an amicus brief to the Ninth Circuit Court of Appeals to defend federal regulatory authority. Kalshi states that its event contracts are under federal jurisdiction, not state regulation. The bill represents the first bipartisan legislative effort in the U.S. targeting prediction markets and could reshape the regulatory landscape for sports betting and prediction markets.
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