As prediction markets gain popularity across the US despite ongoing scrutiny, a new coalition group is calling for stricter enforcement. The group, led by Rep. Mick Mulvaney (R-S.C.), argues that these platforms are blurring the line between investing and gambling.
Prediction Markets Bypass State, Tribal Gaming Laws; Says New Group
According to the latest reports, a new coalition group is challenging the rapid growth of prediction markets. Alleging that these platforms enable illegal sports betting, the group asserts that they should be strictly complying with state and tribal gaming laws.
The group is entitled “Gambling Is Not Investing,” and is led by Rep. Mick Mulvaney (R-S.C.). As per the group’s statement, prediction markets are operating in states where sports wagering remains legally prohibited. Mulvaney stated,
Lawmakers Call for Ban on Certain Bets
In addition to the formation of the new coalition group, lawmakers are planning to launch a bill to ban certain types of betting on prediction markets. Senator Chris Murphy stated that the decision follows reports on some new accounts making millions by correctly predicting the timing of a US attack on Iran.
Murphy stated that it is “insane this is legal.” He also alleged that people close to President Donald Trump profited from war-related events. He vowed to move quickly with legislation to stop such activity.
Industry Groups Challenge State Legal Actions
Meanwhile, several industry players had formed the Coalition for Prediction Markets, fighting against the states’ oppression. These groups argue that states are unfairly challenging the federal rules under which they operate.
The prediction markets face legal challenges from multiple US states. In response, the platforms, like Kalshi and Polymarket, launched legal actions against the states, where they claimed that the states exceeded their authority to regulate. The Commodities Futures Trading Commission (CFTC) holds regulatory authority over prediction market operations, according to their view.
The CFTC has also expressed support for the group, with Chair Michael Selig stating,
Despite growing challenges, prediction markets are gaining significant traction in the US. As CoinGape reported recently, Polymarket is launching attention markets, partnering with Kaito AI. This indicates that these firms are expanding even as the states increase legal pressure.
Source: https://coingape.com/gambling-is-not-investing-new-group-pushes-crackdown-on-prediction-markets/
