U.S. Senate Moving Bi-Partisan Bill to Ban Sports Betting on Prediction Markets like Kalshi, Polymarket
A bill to ban sports betting on prediction markets has been introduced by a bipartisan group of US senators to prevent betting on sites such as Polymarket and Kalshi.
The bill was introduced Monday and would “prohibit any entity registered with the Commodity Futures Trading Commission from listing or facilitating transactions related to sporting events or sporting competitions,” according to the bill. New York Post.
It was co-sponsored by California Democratic Senator Adam Schiff and Utah Republican Senator John Curtis. It’s the first time an elected official on Capitol Hill has taken action to reduce the rush to expand gaming in years.
The bill follows criminal charges filed against Kalshi by the Arizona Attorney General, alleging that the online futures trading company operated an illegal gambling operation under Arizona state law.
“Too many Utah youth are exposed to addictive sports betting and casino gaming contracts that are under the control of the state and not federal regulators,” Senator Curtis said in a statement.
For his part, Senator Schiff added that the futures market is misleading and said, “Sports prediction contracts are sports betting – just with a different name. And yet these contracts have been offered in all fifty states in flagrant violation of state and federal laws. Rather than enforcing the law, the CFTC is green-lighting these markets and even promoting their growth. It is time for Congress to intervene.”
Kalshi said he was shocked by the bill.
“Banning sports from regulated prediction markets would only push this behavior overseas, where no regulation exists,” the company told the Job Monday. “It is clear that this bill is motivated by the interests of casinos threatened by competition.”
Although Schiff and Curtis argue that Kalshi, Polymarket, and other futures trading groups are thinly veiled games of chance, the futures market operates under different rules than outright gambling markets.
“While sports betting is generally supervised at the state level, prediction markets use financial instruments such as futures and commodity contracts, placing them under federal jurisdiction. In recent months, lawmakers, state governments and federal regulators have debated who should oversee event and sports contracts on prediction platforms,” the Job explain.
Yet, these futures outlets have faced backlash due to the vast expansion of their reach. For example, they have been criticized for accepting contracts amid recent U.S. actions against Venezuela and the war in Iran, and they have increasingly entered sports markets.
The bill would also ban betting on casino games such as poker and blackjack.
Follow Warner Todd Huston on Facebook at: Facebook.com/Warner.Todd.Huston, Truth Social @WarnerToddHuston or on X/Twitter @WTHuston
