Bipartisan Bill Aims to Ban Prediction Markets as Illegal Gambling
Senators Adam Schiff and John Curtis have introduced the Prediction Markets Are Gambling Act to the U.S. Congress, a proposal that seeks to prevent entities registered with the Commodity Futures Trading Commission (CFTC) from listing contracts that function similarly to sports betting or traditional casino games. The bill proposes a key amendment to the Commodity Exchange Act to include under its prohibition predictions on professional, collegiate, and amateur sports. According to the bill's proponents, this measure does not seek to replace local legislation but rather to reinforce the authority of states to regulate or ban these types of activities within their jurisdictions.
The proposal comes at a time of regulatory tension, as lawmakers criticize the CFTC for having changed its historical stance of the last 15 years by relaxing the enforcement of rules that prevented the registration of gambling-related contracts. A clear example of this change of course is the recent memorandum of understanding signed between the federal agency and Major League Baseball (MLB), which on March 19 named the Polymarket platform as its official prediction market. This decision has been seen by senators as a governmental validation of markets that, in their opinion, operate in a gray area that evades consumer protections and existing federal laws.
Senator Adam Schiff stated in an official communiqué that sports prediction contracts are nothing more than gambling by another name, denouncing that they are offered nationwide in violation of tribal nations' sovereignty and without generating revenue for the public treasury. For his part, Senator John Curtis emphasized the vulnerability of young people in states like Utah, who are being exposed to speculative financial products that are addictive. For Curtis, congressional intervention is urgent to return control over gambling oversight to the states and ensure that families are protected from mechanisms that should not have a place in commodity markets.
The American Gaming Association (AGA) has expressed its full support for this legislative effort, calling it a critical step to reaffirm that gambling should not be treated as a federal commodity. The trade organization stressed that gambling should continue to be governed by state and tribal laws, thus protecting the integrity of events and ensuring a safe environment for bettors. This debate in the Capitol coincides with similar movements in various state legislatures, such as Bill 913 in Vermont, initiative S-3692 in New Jersey, and Bill 2198 in Hawaii, all aimed at banning unregulated prediction markets that range from political outcomes to natural disasters or deaths.
Tags: United States, USA, prediction markets, anti-prediction markets law, prediction markets ban