US Gaming Groups Push Senate to Ban Sports Prediction Markets in Crypto Bill

Major gaming industry organizations in the United States are urging lawmakers to block sports and casino style prediction markets through upcoming crypto legislation. The groups argue that these platforms are operating like gambling businesses while avoiding state gaming laws and regulations.

According to reports, organizations including the American Gaming Association, the Indian Gaming Association, and the Association of Gaming Equipment Manufacturers sent a letter to the Senate requesting stricter rules in the proposed crypto market structure bill known as the Clarity Act.

The groups said prediction market platforms have created a major expansion of online gambling without approval from voters or state lawmakers.

Senate Crypto Bill Faces New Debate

The letter criticized platforms offering sports related event contracts under federal financial market rules instead of traditional gambling laws. Industry representatives argued that this weakens consumer protections, reduces state control, and impacts tax revenue that supports local communities and tribal programs.

The organizations also warned that younger users could face higher risks because prediction markets present gambling products as investment opportunities.

Kalshi and Polymarket Face Growing Scrutiny

Prediction market platforms such as Kalshi and Polymarket have seen rapid growth since the 2024 US election cycle. However, the industry has also faced legal pressure from several states that claim the platforms violate gambling regulations.

At the same time, the Commodity Futures Trading Commission continues defending its authority over sports-related prediction markets as lawmakers debate the future of crypto regulation in the Senate.