Key Highlights
- A bipartisan Senate proposal named the Prediction Markets Are Gambling Act targets sports and casino contracts on platforms including Kalshi and Polymarket
- Companies regulated by the CFTC would be prohibited from offering contracts based on athletic events or casino-style gaming
- The proposal specifically targets sports-related betting activity rather than attempting to eliminate prediction platforms altogether
- Multiple legislative efforts in 2026 have focused on prediction market regulation, including the BETS OFF Act
- Additional congressional proposals address age verification requirements, promotional restrictions, and usage by government officials
On March 23, lawmakers in the U.S. Senate unveiled bipartisan legislation designed to prevent prediction market platforms from facilitating wagers on sporting events and casino-style gambling.
The legislative effort, titled the Prediction Markets Are Gambling Act, has been put forward jointly by California’s Senator Adam Schiff alongside Utah’s Senator John Curtis.
This marks an unprecedented moment of cross-party collaboration in the Senate specifically addressing the prediction market sector.
During the bill’s introduction, Schiff stated that “sports prediction contracts are sports bets, just with a different name.” He further claimed these offerings are “currently offered in all fifty states in clear violation of state and federal law.”
Provisions of the Proposed Legislation
The legislation would impose restrictions on entities operating under Commodity Futures Trading Commission oversight, barring them from facilitating contracts connected to competitive athletic events. Additionally, the prohibition would extend to traditional casino offerings including poker, blackjack, roulette, and slot machines.
Services such as Kalshi alongside Polymarket would face direct impact from these limitations. These platforms have experienced significant expansion and user growth in recent periods.
Rather than seeking complete closure of prediction market operations, the bill concentrates on eliminating offerings that potentially conflict with current state-level gambling regulations.
According to Schiff, the measure addresses “respecting states’ authority, protecting families, and keeping speculative financial products out of spaces where they don’t belong.”
He further emphasized the legislation’s role in safeguarding tribal sovereignty while eliminating what he characterized as regulatory loopholes that bypass state-level consumer safeguards.
Proponents of the measure express concern about prediction platforms evolving into full-scale internet gambling operations.
Multiple Congressional Initiatives Target Prediction Platforms
This legislative proposal joins several others introduced during the current session. In early March, Senator Chris Murphy joined forces with Representative Greg Casar to present the BETS OFF Act.
That measure specifically targets contracts involving governmental and military matters. Supporters cited instances where platform users generated profits from international conflicts, referencing combined U.S.-Israel military operations against Iran and the kidnapping of Venezuelan leader Nicolas Maduro.
The BETS OFF Act would eliminate wagering on governmental activities, terrorist incidents, armed conflicts, political assassinations, and situations where participants could manipulate outcomes. The proposal includes provisions to disconnect payment processing for international platforms and establish criminal consequences for U.S.-based individuals who facilitate or operate such services.
Senator Richard Blumenthal has advanced consumer protection measures addressing prediction markets, incorporating identity verification protocols and marketing restrictions.
Separately, Senators Jeff Merkley and Amy Klobuchar are advancing legislation preventing government officials from using prediction markets for financial gain. Rahm Emanuel has introduced comparable restrictions that would apply to federal workforce members and their immediate family members.
The proliferation of legislative proposals demonstrates heightened congressional scrutiny of the prediction market sector throughout 2026.
