Quick Overview
Contents
- The Prediction Markets Are Gambling Act has been introduced by Senators Adam Schiff and John Curtis to prohibit sports and casino-related contracts on prediction platforms including Kalshi and Polymarket
- Under the proposed legislation, any entity registered with the CFTC would be forbidden from offering contracts connected to athletic events or casino-style gaming
- The proposal stops short of completely shutting down prediction market operations, focusing instead on eliminating sports-related betting products
- This legislation joins multiple other congressional proposals targeting prediction markets in 2026, including the previously introduced BETS OFF Act
- Additional senators have introduced companion measures addressing age verification requirements, marketing restrictions, and prohibitions on government officials participating in prediction markets
On March 23, a cross-party legislative proposal emerged in the U.S. Senate seeking to prevent prediction market platforms from facilitating contracts related to sporting events and casino-based wagering.
Known as the Prediction Markets Are Gambling Act, the measure has been co-introduced by California Senator Adam Schiff alongside Utah Senator John Curtis.
This legislative effort marks an unprecedented moment of bipartisan cooperation in the Senate specifically focused on regulating prediction market operations.
According to Schiff’s statement accompanying the bill’s introduction, “Sports prediction contracts are sports bets, just with a different name.” He emphasized that such contracts are “currently offered in all fifty states in clear violation of state and federal law.”
Key Provisions of the Legislation
The proposed law would establish clear prohibitions for companies operating under CFTC registration. These entities would be barred from facilitating contracts connected to any form of athletic competition. Additionally, the restrictions would extend to traditional casino offerings including poker, blackjack, roulette, and slot machine games.
Platforms like Kalshi and Polymarket stand to face significant impacts from these proposed restrictions. These services have seen substantial growth in their product offerings and user engagement in recent months.
Importantly, the legislation does not seek the complete elimination of prediction market platforms. Rather, it aims to bar specific types of wagering products that legislators believe conflict with state-level gambling regulations.
According to Schiff, the measure serves to respect “states’ authority, protecting families, and keeping speculative financial products out of spaces where they don’t belong.”
The senator further contended that the legislation would safeguard tribal sovereignty while eliminating what he characterized as regulatory loopholes that circumvent state consumer protection frameworks.
Supporters of the bill express concern that without intervention, prediction markets could gradually evolve into full-scale online gambling operations.
Growing Legislative Focus on Prediction Markets
The Prediction Markets Are Gambling Act represents just one piece of a broader regulatory push targeting these platforms throughout 2026. In early March, Senator Chris Murphy joined forces with Representative Greg Casar to unveil the BETS OFF Act.
This companion legislation aims to eliminate contracts centered on governmental and military matters. Lawmakers cited specific instances where platform users generated profits from international conflicts, including coordinated military operations between the U.S. and Israel targeting Iran, as well as the kidnapping of Venezuelan leader Nicolas Maduro.
The BETS OFF Act would criminalize wagering on governmental activities, acts of terrorism, military conflicts, political assassinations, and any circumstance where participants could manipulate outcomes. The measure would also disconnect payment processing systems serving offshore platforms and establish criminal consequences for U.S.-based individuals involved in promoting or operating such ventures.
Senator Richard Blumenthal has separately advanced consumer protection frameworks for prediction markets, incorporating mandatory age verification systems and caps on promotional activities.
Meanwhile, Senators Jeff Merkley and Amy Klobuchar are championing legislation to prohibit elected representatives from generating income through prediction market participation. Rahm Emanuel has put forward a comparable restriction that would encompass federal government workers and their immediate family members.
The proliferation of these legislative proposals signals heightened congressional scrutiny of the prediction market sector throughout 2026.
