A new push in Washington is targeting what some lawmakers say is a growing workaround in sports betting, one that is expanding quickly across the country under a different name.
U.S. Senator Catherine Cortez Masto is joining a bipartisan effort aimed at banning sports prediction market contracts, which lawmakers argue closely resemble traditional gambling but operate outside the same rules.
The legislation, called the Prediction Markets Are Gambling Act, is backed by Cortez Masto along with Senators Adam Schiff and John Curtis. It would prohibit Commodity Futures Trading Commission, or CFTC, registered entities like Polymarket and Kalshi from offering contracts tied to sports outcomes or casino-style games.
Supporters say the bill is meant to reinforce existing law and remove any uncertainty about whether these types of contracts should be allowed.
“For the entirety of President Trump’s second term, the CFTC has abdicated its responsibility to prevent illegal gaming on prediction markets,” said Senator Cortez Masto. “It’s past time to take the CFTC’s decision-making out of the equation. Event contracts dealing with sports and casino games are nothing more than gambling and fall entirely within the jurisdiction of tribes and states.”
Lawmakers point to a shift by the CFTC, which for 15 years blocked contracts tied to gaming. They say the agency has recently reversed course, easing enforcement and even entering partnerships with organizations like Major League Baseball.
As a result, prediction market platforms are now offering contracts that mirror sports betting, with significant money involved. A wager on the March Madness winner has already surpassed $100 million in trading volume, while Super Bowl-related contracts topped $1 billion earlier this year.
“Sports prediction contracts are sports bets — just with a different name. And yet, these contracts have been offered in all fifty states in clear violation of state and federal law. Rather than enforce the law, the CFTC is greenlighting these markets and even promoting their growth. 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. I’m proud to partner with Senator Curtis to put a stop to these illegal markets,” said Senator Schiff.
Supporters of the bill say these contracts are now available in all 50 states, including places where sports betting is restricted or illegal, raising concerns about oversight and consumer protections.
They also argue that the markets bypass state and tribal regulations and generate no public revenue, unlike traditional gaming industries.
“Too many young people in Utah are getting exposed to addictive sports betting and casino-style gaming contracts that belong under state control, not under federal regulators. Our bipartisan legislation clarifies regulatory jurisdiction, ensuring that states can maintain their authority over sports betting and casino gaming. The Prediction Markets Are Gambling Act is about respecting states’ authority, protecting families, and keeping speculative financial products out of spaces where they don’t belong,” said Senator Curtis.
Nevada Senator Jacky Rosen also weighed in, pointing to the state’s long-standing gaming industry and regulatory structure.
“Casino gaming and sports betting is a multi-billion dollar industry in Nevada that brings millions of visitors to our state every year, and there are state and federal regulations in place to ensure it is done legally and ethically,” said Senator Rosen. “Sports prediction market contracts attempt to get around these guardrails, and these companies should not be allowed to continue offering prediction contracts that clearly violate state consumer protections and gaming laws.”
If passed, the legislation would make clear that contracts tied to sports and casino-style outcomes fall under existing gambling laws, not financial market regulations.
