US Lawmakers Propose Bill to Ban Most Prediction Market Betting

Sen. John Curtis (R) introduced the Prediction Markets Are Gambling Act to ban most prediction market betting. The bill aims to prohibit companies like Kalshi and Polymarket from offering sports markets and similar markets that resemble gambling.

Sen. Adam Schiff (D) co-sponsored the legislation, arguing that prediction market sports contracts are 'indistinguishable from gambling'. The bill amends the Commodity Exchange Act, which regulates futures and commodities trading and created the Commodity Futures Trading Commission (CFTC).

Prediction market firms argue that their markets are different from traditional sports betting and that the CFTC already regulates the platforms. A Kalshi representative stated that the bill was meant to protect casino interests and would move users to offshore, unregulated operators.