US senators plan to introduce a bipartisan bill to ban sports betting on CFTC-regulated prediction markets such as Kalshi and Polymarket. The proposal comes as prediction markets face mounting lawsuits and crackdowns in the United States and other countries amid concerns over insider trading, market manipulation, and circumvention of state gambling laws.
US Senators Introduce Bipartisan Bill to Ban Sports Betting on Prediction Markets
The Commodity Futures Trading Commission-regulated prediction markets, including Kalshi and Polymarket, are facing another ban. Democrat Adam Schiff and Republican John Curtis are introducing a legislative bill on Monday to ban listing of contracts related to sporting events, The Wall Street Journal reported on March 23.
This marks the first bipartisan Senate bill seeking to regulate prediction markets. The bill also seeks to ban “casino-style games” from being listed on prediction markets, such as slot machine games, video poker, blackjack and bingo.
“The CFTC is greenlighting these markets and even promoting their growth,” Senator Adam Schiff (D., Calif.) said. “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.”
Senator raised concerns about the top prediction markets, Kalshi and Polymarket, offering yes-or-no wagers on everything. Notably, recent trading activity is focused on professional and college sports, impacting and putting prediction markets in competition with betting sites such as FanDuel and DraftKings.
They added that many young people are getting exposed to addictive sports betting and casino-style gaming. Senator Curtis claimed this increases risks because it falls under state control rather than federal regulators. Meanwhile, decentralized sport betting platforms have also become a popular venue among traders.
Growing Crackdown Against Polymarket and Kalshi
Multiple bills have emerged in Congress addressing risks in prediction markets. Key proposals include bans on contracts involving terrorism, assassination, war, military actions, and other controlled events on prediction markets.
Lawsuits and bills have raised concerns over corruption and national security threats as traders profiting from bets on geopolitical events. Recently, Senator Chris Murphy and other Democrats pushed for the BETS OFF Act to ban wagering on government actions, terrorism, war, assassination, and rigged-prone events.
However, the Trump administration has shown support for platforms like Kalshi in legal fights against state restrictions, highlighting disputes over federal oversight via the CFTC and state authority.
On a global scale, Argentina followed Columbia to become second Latin American country to ban Polymarket. The country cited concerns over the platform’s alleged illegal gambling practices.
Source: https://coingape.com/prediction-markets-ban-widens-as-us-senators-push-bipartisan-bill-on-sports-betting/
