A bipartisan duo of U.S. senators plan to introduce legislation Monday that would ban American prediction markets from offering sports-related wagers.
“Too many young people in Utah are getting exposed to addictive sports betting and casino-style gaming contracts that belong under state control, not under federal regulators,” Curtis said, in a statement.
The senators said the legislation would prohibit any CFTC registered entity from listing a contract resembling a sports bet or casino-style game, and also “reinforce Congress’ original intent that the Commodity Exchange Act does not permit sports gambling."
In the last year, a growing number of states have sued the nation’s top prediction market platforms, arguing their sports-related markets should comply with state gambling laws. The platforms have pushed back, arguing that because the sports-related wagers are tied to event contracts, they should instead be regulated at the federal level by the CFTC.
A Kalshi spokesperson told Decrypt that today’s proposed bill would push activity offshore and protect the “monopoly” of U.S. casinos.
“It’s clear this bill is motivated by casino interests that are threatened by competition,” the spokesperson said. “They’re more worried about protecting their monopolies than protecting consumers.”
On Friday, Rep. Alexandria Ocasio-Cortez (D-NY), the prominent progressive lawmaker, added her voice to the growing chorus of prediction market skeptics.
