A coalition of more than 50 gaming associations, tribal governments and labor unions urged the US Senate on June 16 to amend the CLARITY Act to explicitly bar sports and casino-style event contracts from prediction-market platforms. The group submitted its letter targeting the federal crypto market-structure bill as a vehicle to insert a sports-betting carve-out. The push escalates a jurisdictional fight over whether the Commodity Futures Trading Commission should regulate sports wagering, with signatories including the American Gaming Association, the Indian Gaming Association and UNITE HERE, a union representing approximately 300,000 hotel, gaming and food-service workers across the United States and Canada.
Coalition Targets CLARITY Act With Sports Betting Carve-Out Request
The coalition submitted its letter on June 16, targeting the CLARITY Act as the most realistic vehicle to insert language explicitly barring sports and casino-style event contracts from prediction-market platforms. Signatories include the American Gaming Association, the Indian Gaming Association and UNITE HERE, a union representing about 300,000 hotel, gaming and food-service workers across the United States and Canada.
Coalition Challenges CFTC Sports Betting Jurisdiction
The coalition argues the Commodity Futures Trading Commission "structurally lacks the authority and institutional infrastructure" to regulate nationwide sports betting, pointing to existing state and tribal systems built for the task. "Sports betting falls outside the CFTC's remit and cannot be offered through prediction market platforms," the letter states. Tribal governments warn that a CLARITY Act without explicit carve-outs could effectively legalise nationwide sports betting through CFTC-registered platforms, bypassing the tribal-state compact system that currently governs where wagering is allowed and how the resulting revenue is shared.
Coalition Claims US$1 Billion State Tax Revenue Loss
The coalition contends that prediction markets have engineered the largest expansion of gambling in U.S. history over the past 18 months, without voter approval, legislative authorisation or meaningful consumer protections. It claims states have lost roughly US$1 billion (AU$1.42 billion) in tax revenue since such contracts appeared, a figure prediction-market operators dispute.
CFTC Chair Advances 267-Page Sports Event Contract Proposal
The Commodity Futures Trading Commission, under chair Michael Selig, is advancing a 267-page proposal that would allow sports event contracts covering final scores, point differentials, win-loss results and player statistics. Platforms such as Kalshi and Polymarket have rolled out such products.
Senators Introduce Prediction Markets Are Gambling Act
The coalition's push runs parallel to the Prediction Markets Are Gambling Act, introduced in March by Senators Adam Schiff and John Curtis. The legislation would bar CFTC-registered entities from listing sports or casino-style contracts.
FAQ
What did the gaming coalition request from the US Senate on June 16?
The coalition of more than 50 gaming associations, tribal governments and labor unions urged the US Senate on June 16 to amend the CLARITY Act to explicitly bar sports and casino-style event contracts from prediction-market platforms.
How much tax revenue does the coalition claim states lost due to prediction markets?
The coalition claims states have lost roughly US$1 billion (AU$1.42 billion) in tax revenue since prediction-market sports contracts appeared, a figure prediction-market operators dispute.
What legislation did Senators Schiff and Curtis introduce regarding prediction markets?
Senators Adam Schiff and John Curtis introduced the Prediction Markets Are Gambling Act in March, which would bar CFTC-registered entities from listing sports or casino-style contracts.
