Gaming groups urge Congress to ban prediction markets sports betting in CLARITY Act

Written by Turner Wrightstaff writerReviewed by Robert Lakinstaff editorWritten by Turner Wrightstaff writerReviewed by Robert Lakinstaff editorGaming groups urge Congress to ban prediction markets sports betting in CLARITY ActLatest NewsPublishedJun 17, 2026Gambling industry groups want the US Senate to step in to clarify that the Commodity Futures Trading Commission does not have the authority to oversee prediction markets.Several national gaming and tribal organizations and labor groups have reportedly called on the US Senate to add language “that explicitly prohibits event contracts tied to sports and casino-style gaming” in the Digital Asset Market Clarity (CLARITY) Act.According to a Wednesday Semafor report, groups tied to sports betting, including the Indian Gaming Association and American Gaming Association have united against what they called gambling on prediction markets. They requested that the US Congress use the CLARITY Act now under consideration in the Senate to affirm that “sports betting falls outside the [Commodity Futures Trading Commission’s] remit and cannot be offered through prediction market platforms.”“While our organizations may differ on other issues, including gambling policy, we are united in our concern that prediction markets have fueled the largest expansion of gambling in US history over the past 18 months — without voter approval or legislative authorization,” said the letter.Source: SemaforThe pushback from the groups comes as the Commodity Futures Trading Commission (CFTC) under Chair Michael Selig has claimed “exclusive jurisdiction” over prediction markets. Selig has led the financial regulator in supporting platforms like Kalshi and Polymarket against lawsuits by state-level gaming authorities.“The CFTC was created to oversee commodities and derivatives markets, not gambling and not sports wagering,” said the letter. “It lacks both the expertise and the infrastructure to police nationwide sports betting, particularly when …

Gaming groups urge Congress to ban prediction markets sports betting in CLARITY Act

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