Gaming Groups Push for Congressional Ban on Prediction Market Contracts

A group of gaming associations has sent a letter to the U.S. Senate urging Congress to ban sports event contracts on prediction markets through existing cryptocurrency legislation.

The letter, signed by organizations such as the American Gaming Association and Indian Gaming Association, argues that these contracts bypass state and tribal law, weaken consumer protections, and undercut local control over gambling regulation.

The industry is pushing for Congress to amend the Digital Market Clarity Act to ban sports and casino-style contracts on prediction markets.

This comes as federal lawmakers have already introduced bills to rein in the prediction markets industry, and state regulators are involved in dozens of lawsuits against operators and the Commodity Futures Trading Commission over regulatory jurisdiction.