TLDR
- Senators Adam Schiff and John Curtis introduced the Prediction Markets Act on Monday to regulate online prediction markets
- The bill aims to stop prediction platforms from offering sports bets without state licenses by bypassing CFTC oversight
- CFTC Chair Mike Selig had relaxed rules, allowing real-money bets in all 50 states without state licensing or local taxes
- State leaders including Utah Governor Spencer Cox and tribal gaming groups support the bill
- The legislation would ban any prediction contract that resembles a sports wager and preserve state control over gambling
Two U.S. senators from opposite sides of the aisle introduced a new bill on Monday aimed at cracking down on unregulated prediction markets. The Prediction Markets Act was brought forward by California Democrat Adam Schiff and Utah Republican John Curtis.
The bill targets online prediction platforms that currently operate under the oversight of the Commodity Futures Trading Commission. These platforms have been offering real-money bets on sports and games across all 50 states without obtaining state licenses or paying local taxes.
The issue centers on a regulatory gap. Prediction markets have used CFTC oversight to avoid the stricter rules that govern traditional sportsbooks and casinos at the state level.
Over recent months, CFTC Chair Mike Selig relaxed how the agency handles these platforms. He defended the agency’s authority over these markets and loosened enforcement.
That shift opened the door for prediction platforms to expand rapidly. They began operating in states where sports betting is either banned or heavily regulated.
Senators Take Opposing Paths to the Same Goal
Senator Schiff said that sports prediction contracts function exactly like traditional sports bets. He accused the CFTC of promoting what he called illegal markets rather than enforcing the law.
Schiff wants Congress to act now to protect state consumer regulations and keep tax revenue flowing to local governments.
Senator Curtis focused on a different concern. He said casino-style games should remain under strict state control and that federal regulators have no role in managing local sports betting.
Curtis expressed particular worry about the impact on younger players who can access these platforms easily through their phones.
The bipartisan nature of the bill reflects shared concerns across political lines about consumer protection and states’ rights in gambling regulation.
State Leaders and Tribal Groups Back the Bill
Utah Governor Spencer Cox has been one of the most vocal critics of prediction markets. He recently pledged to use every legal option to fight the CFTC in court over the issue.
Cox called these platforms pure gambling and said they damage families and harm young people.
Tribal gaming organizations also came out in strong support. David Bean, chair of the Indian Gaming Association, praised the bill for protecting tribal and state authority.
Bean said prediction platforms currently face no accountability and expose players to unchecked risks.
James Siva, chair of the California Nations Gaming Association, called prediction contracts on future sports events illegal betting operations. He said allowing anyone to bet from a phone anywhere in the country hurts tribal governments.
Both tribal leaders said they want to work with Congress to hold these platforms accountable.
Licensed sportsbooks spend heavily to comply with state laws. They obtain licenses, build regulated apps, and contribute to local economies through taxes and jobs.
Prediction markets skip those steps entirely by operating under federal rules that were not designed for sports betting.
If the bill passes, it would ban any contract that resembles a sports wager from being offered through the CFTC framework. States would retain full control over gambling within their borders.
The Indian Gaming Association and California Nations Gaming Association both confirmed their intent to work directly with Congress on the legislation as it moves forward.
