Bipartisan Bill Would Ban Sports Betting on Prediction Markets

A bipartisan pair of senators introduced legislation this week aimed at banning sports betting through prediction market platforms such as Kalshi and Polymarket.

Sens. John Curtis (R-Utah) and Adam Schiff (D-Calif.) unveiled the Prediction Markets Are Gambling Act, which would prohibit entities registered with the Commodity Futures Trading Commission (CFTC) from offering prediction contracts that resemble sports bets or casino-style games.

Curtis said in a statement that the measure is needed to protect state authority over gambling laws. He said the rapid expansion of these platforms exposes young people to gambling-like products that should fall under state, not federal, oversight. The legislation, he said, is intended to reaffirm states’ rights, protect consumers, and keep speculative financial products out of areas traditionally regulated as gambling.

Schiff criticized the CFTC for what he described as a failure to enforce existing laws. He said that prediction markets function as a “backdoor” for sports betting, undermining state consumer protections, infringing on tribal sovereignty, and generating no public revenue.

CFTC-registered platforms offer a growing number of sports-related prediction contracts that critics say are effectively indistinguishable from traditional gambling. Over the past year, these markets have expanded rapidly with limited regulation.

According to the senators, some contracts tied to major sporting events have attracted substantial trading activity, including more than $100 million on a single March Madness outcome and more than $1 billion in Super Bowl-related trades in 2026.

These contracts are available nationwide, including in states where sports betting is restricted or prohibited. Opponents say they bypass state and tribal regulatory frameworks while failing to contribute tax revenue or adhere to local consumer protections. In states such as Utah, where all forms of gambling are illegal, their availability has raised particular concern.

For more than a decade, the CFTC has maintained authority to block contracts tied to gambling. However, the agency recently signaled a shift in its approach, including involvement in ongoing litigation and consideration of regulatory changes that could ease restrictions. It has also explored partnerships with professional sports organizations such as Major League Baseball, further fueling debate over the role of prediction markets.

The proposed legislation would explicitly bar CFTC-regulated entities from offering contracts that resemble sports betting or casino games. It also seeks to reaffirm that the Commodity Exchange Act does not permit sports betting, thereby removing ambiguity about the legality of these products.

Kalshi opposes the bill. Spokesperson Elisabeth Diana told The Epoch Times in an emailed statement that banning sports-related prediction markets would backfire by pushing users to unregulated offshore platforms.

“It’s clear this bill is motivated by casino interests that are threatened by competition,” she said. “They’re more worried about protecting their monopolies than protecting consumers.”

Diana went on to say that regulated prediction markets are a fairer alternative to traditional gambling because they don’t disadvantage successful users, and she said that competition—not protection of existing industries—should determine their future.

The Epoch Times has reached out to the CFTC and Polymarket for comment.