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Sens. Adam Schiff (D-Calif.) and John Curtis (R-Utah) introduced a bill Monday that would ban prediction markets from listing sports bets or casino-style games on their platforms.
The Prediction Markets Are Gambling Act would block entities that are regulated by the Commodity Futures Trading Commission (CFTC), like prediction markets, from allowing wagers on sporting events or games traditionally found in casinos.
The measure comes amid a growing dispute between state and federal regulators over the platforms and whether they have to follow state gambling laws.
“Sports prediction contracts are sports bets — just with a different name,” Schiff said in a statement. “And yet, these contracts have been offered in all fifty states in clear violation of state and federal law.”
“Rather than enforce the law, the CFTC is greenlighting these markets and even promoting their growth,” he continued. “It’s time for Congress to step in and eliminate this backdoor which violates state consumer protections, intrudes upon tribal sovereignty, and offers no public revenue.”
Prediction markets, like Kalshi and Polymarket, contend that the product they offer is distinct from traditional gambling and is not subject to state gambling laws.
They have secured a key ally in the CFTC under newly confirmed chair Mike Selig, who has argued the platforms fall under federal jurisdiction and vowed to fight state efforts to regulate them.
The move has split Republicans, with several continuing to back state regulation.
“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,” Curtis said in a statement.
“Our bipartisan legislation clarifies regulatory jurisdiction, ensuring that states can maintain their authority over sports betting and casino gaming,” he added.
Utah Gov. Spencer Cox (R) has separately vowed to “use every resource within my disposal as governor of the sovereign state of Utah, and under the Constitution of the United States to beat [Selig] in court.”
Two competing coalitions have emerged in recent months, with members of the GOP on both sides. The Coalition for Prediction Markets, which launched in December, has argued that their federal regulatory framework is “under attack” by states and touts former House Financial Services Chair Patrick McHenry (R-N.C.) as a senior adviser.
“Millions of Americans trade sports on federally regulated prediction markets. Banning sports would just bolster unregulated platforms that lack uniform protections. The casino monopoly behind this bill does not care about consumer safety. They want to eliminate competition. Consumers should be able to decide for themselves,” said a spokesperson for the Coaltion for Prediction Markets in a statement.
Meanwhile, Gambling Is Not Investing launched earlier this month with former Rep. Mick Mulvaney (R-S.C.) at the helm and contends that prediction markets are improperly bypassing state laws. Mulvaney is a contributor for NewsNation, The Hill’s partner network that is also owned by Nexstar Media Group.
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