Several gaming associations, tribal groups and labour unions have urged the US Senate to amend pending crypto legislation to restrict prediction markets from facilitating sports and casino-style betting.
This request specifically targets the Digital Asset Market Clarity Act, aiming to prevent platforms from offering these contracts under a federal financial framework.
Signatories of the June 16th letter include the American Gaming Association (AGA) and Indian Gaming Association (IGA), among others. They argue that sports-event contracts allow platforms to bypass state and tribal regulations, undermining consumer protections and draining resources from locally governed systems that support jobs, taxes and community programs.
The letter, as reported by Semafor, says: “While our organisations may differ on other issues, including gambling policy, we are united in our concern that prediction markets have fuelled the largest expansion of gambling in US history over the past 18 months, without voter approval or legislative authorisation.”
The groups express concern over platforms enabling users as young as 18 to place bets in unregulated jurisdictions without appropriate responsible gaming measures. They also highlight the misleading nature of marketing gambling as investments, potentially influencing younger demographics.
The letter also criticises the Commodity Futures Trading Commission’s (CFTC) involvement, asserting that the agency, designed to oversee commodities and derivatives, lacks the necessary infrastructure to regulate sports betting. The groups believe this adds complexity to an already strained legislative process.
This request adds pressure to a Bill already facing ethical debates and procedural challenges, including a 60-vote threshold. Previously, Senators Adam Schiff and John Curtis introduced legislation aiming to ban sports and casino contracts on prediction market platforms.
The next few weeks will be crucial in determining whether lawmakers will incorporate these gaming restrictions into the bill or opt for a different legislative path.
