Gaming groups urge Senate to ban sports betting on markets

A coalition of major gaming associations, tribal organizations, and labor unions is urging the U.S. Senate to explicitly prohibit sports and casino-style betting on prediction market platforms through pending cryptocurrency legislation. In a letter sent to lawmakers on June 16, the groups argue that these platforms are exploiting a regulatory loophole to offer nationwide sports betting under the guise of federally regulated financial products, bypassing state and tribal gaming laws.

The signatories, which include the American Gaming Association, the Indian Gaming Association, and unions such as UNITE HERE, contend that prediction markets have facilitated the largest expansion of gambling in U.S. history over the past 18 months without legislative approval. They warn that this structure undermines state-controlled systems that generate tax revenue, fund community programs, and enforce consumer protections, including age restrictions and responsible gaming safeguards. The letter specifically calls on Congress to use the crypto market structure bill, known as the Clarity Act, to affirm that sports betting falls outside the jurisdiction of the Commodity Futures Trading Commission.