Several U.S. gaming and labour groups are asking lawmakers to clearly leave out sports betting and casino-style event contracts from the Digital Asset Market CLARITY Act. They say prediction market platforms are offering products that look like gambling, which could get around state and tribal gaming rules.
In a letter to the Senate, groups like the Indian Gaming Association and the American Gaming Association asked Congress to make it clear that sports betting should not be regulated by the Commodity Futures Trading Commission (CFTC). They believe event contracts based on sports results should stay under current state and tribal gaming rules.
This debate shows a growing conflict between prediction market operators and traditional gaming groups. Supporters of prediction markets see these contracts as financial tools covered by federal commodities laws. Gaming groups, however, say they are more like bets and should be regulated as gambling.
Industry groups also say prediction markets have led to a fast increase in gambling without lawmakers’ approval. The American Gaming Association estimates that states may have lost over $1 billion in tax revenue since sports-related event contracts started on prediction platforms.
This issue is now part of bigger talks about the CLARITY Act, which tries to set clear rules for digital assets between the SEC and the CFTC. As lawmakers review the bill, how prediction markets are handled is one of the most closely watched topics.
News: The gaming industry is teaming up with unions to urge senators to add language to pending crypto legislation that would block prediction markets from offering wagers on sports, per a letter seen by Semafor. https://t.co/CIwbEAARTs pic.twitter.com/msJtRwE5kA
— Eleanor Mueller (@Eleanor_Mueller) June 16, 2026
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