Key Points
- California Senator Adam Schiff and Utah Senator John Curtis have co-sponsored the Prediction Markets Are Gambling Act targeting athletic and casino-style contracts
- The proposed legislation would prohibit CFTC-regulated platforms from offering betting contracts on sporting events and casino games
- The measure focuses on restricting specific contract types rather than eliminating prediction platforms altogether
- Congress has introduced multiple bills addressing prediction markets in 2026, with the BETS OFF Act among the most prominent
- Additional legislative efforts include proposals for age verification requirements, advertising restrictions, and bans on government officials participating in these markets
On March 23, a bipartisan legislative effort emerged in the U.S. Senate targeting prediction market platforms that offer contracts related to athletic competitions and casino-style gaming.
The legislation, titled the Prediction Markets Are Gambling Act, marks a significant bipartisan effort, with California’s Senator Adam Schiff and Utah’s Senator John Curtis serving as co-sponsors.
This marks a notable development as senators from both sides of the aisle unite to address concerns about prediction market operations.
“Sports prediction contracts are sports bets, just with a different name,” Schiff stated during the bill’s introduction. He emphasized that these contracts operate “currently offered in all fifty states in clear violation of state and federal law.”
Key Provisions of the Proposed Legislation
The bill would establish strict prohibitions for companies operating under Commodity Futures Trading Commission oversight. These entities would be barred from listing any contracts connected to sporting competitions. Additionally, the ban would extend to traditional casino offerings including poker, blackjack, roulette, and slot machines.
Platforms like Kalshi and Polymarket stand to face significant impacts from these proposed restrictions. Both services have seen substantial growth and user engagement in recent times.
The legislation stops short of demanding complete platform shutdowns. Rather, its scope centers on eliminating wagers that conflict with current state gambling regulations.
According to Schiff, the measure serves to “respecting states’ authority, protecting families, and keeping speculative financial products out of spaces where they don’t belong.”
The senator further contended the bill would safeguard tribal sovereignty while eliminating what he characterized as regulatory loopholes circumventing state-level consumer safeguards.
Proponents argue the legislation is necessary to prevent prediction markets from evolving into full-fledged online gambling operations.
Multiple Legislative Efforts Target Prediction Platforms
The Prediction Markets Are Gambling Act represents just one component of a broader legislative push this year. In early March, Senator Chris Murphy joined forces with Representative Greg Casar to unveil the BETS OFF Act.
That particular measure seeks to prohibit contracts involving government actions and military operations. Legislators cited instances where platform users generated profits from international crises, such as coordinated U.S.-Israel military actions against Iran and the kidnapping of Venezuelan President Nicolas Maduro.
The BETS OFF Act would ban wagering on governmental decisions, acts of terrorism, military conflicts, political assassinations, and situations where participants could manipulate outcomes. The bill also proposes disconnecting payment processing for offshore platforms and establishing criminal consequences for U.S.-based individuals who advertise or operate such enterprises.
Senator Richard Blumenthal has introduced complementary consumer protection measures for prediction markets, featuring mandatory age verification systems and constraints on promotional activities.
Meanwhile, Senators Jeff Merkley and Amy Klobuchar are championing legislation to prevent elected representatives from generating income through prediction market participation. Rahm Emanuel has put forward a comparable prohibition that would encompass federal workers and their immediate family members.
The proliferation of these legislative proposals underscores heightened congressional scrutiny of the prediction market sector throughout 2026.
