US Senators Introduce Bipartisan Bill Targeting Sports and Casino-Style Contracts on Kalshi, Polymarket

Senators Adam Schiff and John Curtis on Monday introduced the "Prediction Markets Are Gambling Act," a bipartisan measure that would bar Commodity Futures Trading Commission-registered firms such as Kalshi and Polymarket from offering sports prediction contracts and casino-style event contracts. The bill would amend the Commodity Exchange Act to prohibit event contracts tied to professional and collegiate sports, along with games including blackjack, roulette and lotteries, according to the legislative text. It would also block such products from being listed or traded on regulated exchanges and states explicitly that federal law would not override existing state gambling restrictions. Curtis said the proposal is intended to clarify regulatory jurisdiction, preserve state authority over betting markets and curb the spread of speculative products into areas he views as inappropriate. "Too many young people in Utah are getting exposed to addictive sports betting and casino-style gaming contracts that belong under state control, not under federal regulators," he said, adding that the bill is meant to "protect families" and keep speculative financial products out of gambling-like markets. Schiff argued that sports-related prediction contracts, now broadly available nationwide, function as betting products and said the CFTC has enabled their expansion rather than enforcing limits. "Rather than enforcing the law, the CFTC is greenlighting these markets and even promoting their growth," he said, calling for Congress to close what he described as a backdoor that undermines state consumer protections, intrudes on tribal sovereignty and generates no public revenue. The legislation comes as prediction markets continue to scale rapidly. Combined trading volumes across the sector reached $44 billion in 2025, and industry forecasts suggest volumes could top $50 billion this year. Sports-related activity has been a major driver of that growth and a key revenue stream for leading platforms. States have expanded regulated sports betting since the 2018 Supreme Court decision allowed legalization at the state level, creating frameworks that generate meaningful public revenue and incorporate consumer safeguards. Prediction markets operate under federal CFTC oversight as financial instruments rather than gambling products, a distinction that critics say allows platforms to bypass state licensing and tax requirements. States collected billions in sports betting tax revenue in 2025. The rise of federally regulated prediction markets offering similar products without contributing to state coffers has prompted objections from governors, state gaming commissions and tribal nations. Kalshi and Polymarket are also facing mounting legal pressure as states challenge their operations as illegal betting platforms. With dozens of lawsuits and mixed rulings, including matters proceeding in Nevada and disputes in Massachusetts, the firms have leaned on CFTC oversight as a central defense. The CFTC has stepped up its pushback against state challenges in a new court filing, arguing that congressional authority extends to commodity-linked event contracts and should preempt state regulation. Chair Michael Selig said the agency's jurisdiction covers these products and should take precedence over state-level rules.