TLDR
- Senators Adam Schiff and John Curtis introduced the Prediction Markets Are Gambling Act to ban sports and casino-style contracts on platforms like Kalshi and Polymarket
- The bill would bar any CFTC-registered company from listing contracts tied to athletic competitions or casino games
- The legislation does not seek to shut down prediction platforms entirely but aims to restrict sports-related wagers
- This is the latest in a wave of congressional bills targeting prediction markets in 2026, including the BETS OFF Act
- Other senators are pushing separate proposals covering age checks, advertising limits, and bans on elected officials using prediction markets
A bipartisan bill introduced in the U.S. Senate on March 23 aims to block prediction market platforms from offering contracts tied to sports events or casino-style games.
The proposal is called the Prediction Markets Are Gambling Act. It is co-sponsored by Senator Adam Schiff of California and Senator John Curtis of Utah.
The bill represents the first time lawmakers from both major parties have joined together in the Senate to directly target prediction markets.
“Sports prediction contracts are sports bets, just with a different name,” Schiff said when introducing the bill. He added that these contracts are “currently offered in all fifty states in clear violation of state and federal law.”
What the Bill Would Do
Under the proposed legislation, any company registered with the Commodity Futures Trading Commission would be prohibited from listing contracts linked to athletic competitions. The ban would also cover casino games such as poker, blackjack, roulette, and slots.
Platforms like Kalshi and Polymarket would be directly affected by the restrictions. Both platforms have expanded their offerings in recent years and attracted growing user bases.
The bill does not call for prediction platforms to shut down entirely. Instead, it focuses on preventing them from offering wagers that fall under existing state gambling laws.
Schiff said the legislation is about “respecting states’ authority, protecting families, and keeping speculative financial products out of spaces where they don’t belong.”
He also argued the bill would help protect tribal sovereignty and close what he described as a backdoor around state consumer protections.
Lawmakers behind the bill say they want to stop prediction markets from gradually turning into online casinos.
A Wave of Prediction Market Bills in Congress
The Prediction Markets Are Gambling Act is not the only proposal targeting these platforms this year. Earlier in March, Senator Chris Murphy and Representative Greg Casar introduced the BETS OFF Act.
That bill was designed to block contracts tied to government and military decisions. Lawmakers pointed to cases where users profited from geopolitical crises, including joint strikes by the U.S. and Israel against Iran and the abduction of Venezuelan President Nicolas Maduro.
The BETS OFF Act would outlaw wagers on government actions, terrorism, war, assassination, and any event where an individual could influence the outcome. It would also cut off payment systems linked to offshore sites and impose criminal penalties on anyone in the U.S. who promotes or manages such businesses.
Senator Richard Blumenthal has proposed new consumer protections for prediction markets, including age verification checks and advertising limits.
Senators Jeff Merkley and Amy Klobuchar are pushing a separate bill to stop elected officials from profiting through prediction markets. Rahm Emanuel has proposed a similar ban that would extend to federal employees and their families.
The growing number of bills reflects increasing attention from Congress on the prediction market industry in 2026.
