Adam Schiff and John Curtis introduce bipartisan bill banning sports wagering on Kalshi and Polymarket.

U.S. Senators Adam Schiff (D-Calif.) and John Curtis (R-Utah) introduced bipartisan legislation Monday called the 'Prediction Markets Are Gambling Act'.

“US lawmakers to introduce bipartisan bill to prevent sports betting on prediction markets The news: US Senators Adam Schiff and John Curtis will introduce a bipartisan Senate bill on Monday to prohibit entities regulated by the Commodity Futures Trading Commission (CFTC), including prediction-market exchanges Kalshi and Polymarket’s US platform, from listing contracts related to sporting events”

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The bill would prohibit prediction market platforms like Kalshi and Polymarket from offering sports betting and casino-style games.

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The legislation targets entities regulated by the Commodity Futures Trading Commission (CFTC).

This marks the first bipartisan Senate effort to regulate the rapidly expanding prediction market industry.

Schiff argued that 'Sports prediction contracts are sports bets — just with a different name'.

He accused the CFTC of 'greenlighting these markets and even promoting their growth'.

The legislation aims to close what Schiff described as a 'backdoor' that violates consumer protections.

It also intrudes upon tribal sovereignty and generates no public revenue for states.

The legislation responds to the explosive growth of prediction markets.

Prediction markets have seen over $1.2 billion in trading during this year's Super Bowl Sunday alone.

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Weekly volumes have exceeded $4.5 billion according to industry estimates.

These platforms have emerged as significant competitors to established sports betting sites like FanDuel and DraftKings.

Much of their trading activity is focused on professional and college sports.

The bill comes amid escalating tensions between states, federal regulators, and prediction market companies.

Several states have challenged the CFTC's claim of exclusive regulatory control.

Schiff emphasized that these contracts are offered in all fifty states, including those with gambling restrictions.

Curtis expressed particular concern about the impact on young people.

“Magazine: Inside a 30,000 phone bot farm stealing crypto airdrops from real users US Senators Adam Schiff and John Curtis are expected to introduce a bipartisan bill on Monday that would bar sports betting and “casino-style” contracts from prediction markets regulated by the Commodity Futures Trading Commission (CFTC), according to a Monday Wall Street Journal report”

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He stated that 'Too many young people in Utah are getting exposed to addictive sports betting and casino-style gaming contracts'.

Curtis argued these contracts belong 'under state control, not under federal regulators.'

The legislation also seeks to ban casino-style games including slot machines, video poker, blackjack and bingo.

Critics argue that prediction markets circumvent state gambling regulations.

The platforms maintain they offer a fairer alternative to traditional sportsbooks.

Kalshi claims their platforms have 'no house that restricts winners and hooks people the more they lose.'

The bill reflects broader regulatory concerns about prediction markets.

The legislative action follows recent enforcement actions by states against prediction market platforms.

Last week, Arizona's attorney general filed criminal charges against Kalshi.

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Nevada secured a temporary restraining order preventing Kalshi from offering contracts on sports, elections and entertainment.

These state actions challenge the CFTC's assertion of exclusive regulatory authority.

Kalshi has sued Arizona, Iowa and Utah, maintaining its operations fall under federal jurisdiction.

The company criticized the proposed bill as motivated by 'casino interests that are threatened by competition.'

Kalshi argues that 'Banning sports on regulated prediction markets would just push this behavior offshore, where no regulation exists.'

The prediction market industry has attracted significant investment, with Kalshi reportedly securing a $22 billion valuation.

The legislation has drawn support from traditional gambling industry stakeholders.

“US senators introduce bill to ban sports wagering on Kalshi and Polymarket Schiff said the proposed legislation seeks to shut down a loophole that weakens consumer protections and infringes on tribal authority”

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The American Gaming Association stated that 'The introduction of the Prediction Markets Are Gambling Act is a critical step in reaffirming Congressional intent that all gaming, including sports betting, is not a federal commodity, and is governed by state and tribal law.'

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The bill reflects growing bipartisan concern about prediction markets extending beyond sports betting.

Earlier this year, Senator Chris Murphy and other Democrats pushed for the BETS OFF Act.

That legislation would ban wagering on government actions, terrorism, war, assassination, and rigged-prone events.

The CFTC under chairman Michael Selig has signaled support for prediction markets.

The CFTC recently issued guidance about sports event contracts being susceptible to manipulation.

MLB recently signed a licensing agreement with Polymarket worth up to $300 million over four years.