New US bill suggests a ban on sports prediction market contracts

(AsiaGameHub) –   The Prediction Markets Are Gambling Act seeks to bar any entity registered with the CFTC from offering contracts that closely mimic sports bets or casino-style games.

U.S. — A new bipartisan bill introduced in the U.S. Congress would prohibit any CFTC-registered entity from listing contracts that closely resemble sports bets or casino-style games. The legislation, titled the Prediction Markets Are Gambling Act, was put forward by Senators Adam Schiff (D-California) and John Curtis (R-Utah).

Its sponsors describe the bill as “the first bipartisan measure aimed at regulating prediction markets.” It would amend the Commodity Exchange Act to include amateur, collegiate, and professional sports, and its text clarifies that it will not override any state laws or rules that regulate or ban such games.

Schiff and Curtis argue that for 15 years, the CFTC enforced rules banning entities from listing gambling-related contracts—yet the agency has since “abruptly reversed course,” intervening in litigation and loosening its enforcement. The CFTC also took part in a memorandum of understanding with Major League Baseball, which named Polymarket its official prediction market exchange on March 19.

Senator Schiff stated: “Sports prediction contracts are just sports bets with a different name. Yet these contracts have been offered in all 50 states, clearly violating state and federal law. Instead of enforcing the law, the CFTC is greenlighting these markets and even promoting their growth. It’s time for Congress to step in and close this loophole, which undermines state consumer protections, infringes on tribal sovereignty, and generates no public revenue. I’m proud to partner with Senator Curtis to end these illegal markets.”

Curtis added: “Too many young people in Utah are being exposed to addictive sports betting and casino-style gaming contracts—products that belong under state control, not federal regulators. Our bipartisan legislation clarifies regulatory authority, ensuring states can keep their power over sports betting and casino gaming. The Prediction Markets Are Gambling Act is about respecting state authority, protecting families, and keeping speculative financial products out of places where they don’t belong.”

The American Gaming Association (AGA) called the bill’s introduction “a critical step in reaffirming Congress’s intent that all gaming—including sports betting—is not a federal commodity and is governed by state and tribal law.”

The AGA further noted it “strongly supports this bipartisan effort, led by Senators Schiff and Curtis, to uphold state and tribal sovereignty and protect consumers by ensuring sports and gambling-related contracts are prohibited.”

A bill in the Vermont House of Representatives, sponsored by Rep. Thomas Stevens (House Bill 913), proposes banning certain event contracts—covering prediction markets tied to sports, contests, individuals, politics and campaigns, disasters, war, all-hazards, or death.

In New Jersey, Senate President Pro Tempore Shirley K. Turner’s S-3692 seeks to ban unregulated prediction markets in the state, while Rep. Scot Matayoshi has introduced House Bill 2198 in Hawaii.