Gaming Organizations Press Senators to Advance Prediction Markets Legislation

Multiple industry groups have joined forces in a coordinated effort to influence federal policy on event contracts offered through prediction market platforms. The American Gaming Association, the Indian Gaming Association, the Association of Gaming Equipment Manufacturers, the National Thoroughbred Racing Association, several state regulatory bodies, and labor unions submitted a joint letter to U.S. Senators calling for swift passage of the bipartisan Prediction Markets Are Gambling Act. This legislation, introduced in March 2026 by Senators John Curtis of Utah and Adam Schiff of California, seeks to prevent the Commodity Futures Trading Commission from authorizing contracts tied to sports outcomes or casino-style events. Observers note that the groups behind the letter maintain these offerings amount to sports betting conducted outside established state and tribal oversight frameworks. The letter highlights concerns that platforms such as Kalshi have received CFTC approval to list contracts on sporting events, which the signatories argue circumvents existing regulatory structures. Data from regulatory filings shows these contracts have expanded in scope since initial approvals, prompting the coalition to act before additional platforms follow suit. Researchers tracking market activity report that sports-related event contracts now represent a growing segment of overall prediction market volume.

Details of the Legislative Proposal

The Prediction Markets Are Gambling Act would amend existing statutes to explicitly bar the CFTC from permitting trading on contracts that reference athletic competitions or games of chance. Proponents of the measure point to language in the Commodity Exchange Act that traditionally excluded gaming activities from federal derivatives oversight. Those who've examined the bill's text note it includes provisions for enforcement mechanisms and coordination with state authorities.

State gaming regulatory agencies participating in the letter operate across multiple jurisdictions where sports betting has been legalized through legislative processes. These agencies have documented instances where prediction market contracts mirror licensed betting products yet operate without the same licensing, taxation, or consumer protection requirements. Figures from state reports indicate licensed sportsbooks in regulated markets contribute directly to state revenues through established tax structures.

Stakeholder Positions and Background Context

The Association of Gaming Equipment Manufacturers has emphasized the importance of maintaining clear boundaries between regulated gaming sectors and emerging financial products. Labor unions involved in the coalition represent workers employed by casinos and racetracks, sectors that operate under strict state licensing regimes. The National Thoroughbred Racing Association brings perspective from the horse racing industry, which maintains its own regulatory framework for pari-mutuel wagering.

Indian Gaming Association representatives have underscored tribal sovereignty considerations in gaming regulation. Tribal gaming operations function under compacts negotiated with states and approved by the federal government, creating a distinct layer of oversight that the coalition argues should not be bypassed. According to statements from tribal gaming officials, unauthorized sports event contracts could impact revenue streams that support tribal government services and community programs.

The CFTC first began reviewing event contract applications in prior years, with decisions on sports-related contracts drawing scrutiny from traditional gaming regulators. Senate records show the March 2026 bill introduction followed several months of platform expansions, and as of June 2026 lawmakers continue to receive input from affected industries on implementation details.

Regulatory Landscape and Industry Impact

Current federal law distinguishes between derivatives trading overseen by the CFTC and gaming activities regulated at the state level. The letter from the coalition contends that sports event contracts fall into the latter category regardless of the platform offering them. Legal analyses prepared by regulatory experts have examined whether CFTC authority extends to contracts that function similarly to wagers on game results.

Prediction market operators have maintained that their contracts serve informational and hedging purposes, yet the groups signing the letter disagree with that characterization when the underlying event involves sports or casino games. Evidence presented in regulatory comments includes trading patterns that align closely with betting volumes observed in licensed markets during major sporting events.

State regulatory agencies have cited examples where prediction market activity occurs in jurisdictions without sports betting legalization, creating enforcement challenges for officials tasked with upholding state laws. The legislation under consideration would clarify jurisdictional lines without altering existing state authority over licensed operations.

Conclusion

The joint letter represents a unified stance from organizations across commercial gaming, tribal gaming, equipment manufacturing, racing, labor, and state oversight bodies. As the Senate considers the Prediction Markets Are Gambling Act introduced by Senators Curtis and Schiff, the coalition's arguments center on preserving established regulatory boundaries. Developments in June 2026 will determine whether the measure advances and how federal policy on event contracts evolves from this point forward.