Gaming Industry Urges Senate to Block Sports Prediction Markets in Crypto Bill

A coalition of gaming industry groups has sent a letter to the US Senate, urging lawmakers to block sports-related prediction markets in the country's first major cryptocurrency rulebook. The Clarity Act, the Senate's main vehicle for setting rules around digital assets, now awaits a vote from the full chamber.

The American Gaming Association (AGA), the Indian Gaming Association, and other groups argue that prediction markets have driven a significant increase in gambling activity without state or tribal approval. They claim states are losing $1 billion in gaming tax revenue due to the rise of sports-related prediction contracts.

“Litigation may eventually clarify the law, but this is ultimately a question of congressional intent,” the letter read. “Congress should not wait while this nationwide expansion of gambling continues. It should use crypto legislation to reaffirm a simple principle: sports betting falls outside the CFTC’s remit and cannot be offered through prediction market platforms.”

This is not the first attempt to rein in the sector. In March, Sen. John Curtis and Adam Schiff introduced a standalone bill to block CFTC-regulated platforms from offering similar contracts.