A bipartisan bill introduced in the US Senate aims to close a regulatory loophole that has allowed prediction markets to operate. The “Prediction Markets Are Gambling Act,” sponsored by Senators Adam Schiff (D-CA) and John Curtis (R-UT), seeks to strip the Commodity Futures Trading Commission (CFTC) of its authority to oversee sports-related event contracts. This would effectively ban platforms like Kalshi and Polymarket from offering wagering on athletic events, which lawmakers argue bypasses state-level gambling taxes and consumer protections. The move is seen as a win for traditional regulated sportsbooks, with shares of Flutter Entertainment (FanDuel’s parent) and DraftKings rallying on the news. The Indian Gaming Association has thrown its support behind the bill, framing it as a necessary step to reaffirm state and tribal authority over gambling regulation.
