US tribal gaming organisations have urged senators to amend the Digital Asset Market Clarity Act to prevent prediction-market platforms from using the legislation to expand sports and casino-style event contracts.
The Indian Gaming Association and other tribal organisations have warned that the current version of the CLARITY Act does not expressly protect state and tribal authority over gambling.
The digital asset legislation would divide regulatory responsibility for cryptocurrencies and other digital commodities between the Commodity Futures Trading Commission and Securities and Exchange Commission.
The House passed H.R. 3633 in July 2025. Updated Senate text combining work from the Banking and Agriculture committees was released on 22 July, but the bill has not yet reached a full Senate vote.
Tribal groups argue that broad provisions covering digital commodities and decentralised finance could be used by prediction-market operators to offer sports and casino-style contracts without state licences or tribal approval.
The United South and Eastern Tribes Sovereignty Protection Fund has asked Senate leaders to insert language prohibiting gaming through prediction markets and confirming that decentralised finance provisions do not override state or tribal gambling laws.
David Bean, chairman of the Indian Gaming Association, told the House Agriculture Committee that sports contracts offered through federally regulated exchanges undermined tribal sovereignty and existing state compacts.
Bean urged Congress to advance H.R. 7840, the Event Contract Enforcement Act, which would prohibit specified event contracts and preserve state and tribal authority over sports betting.
David Bean, chairman of the Indian Gaming Association, said: “This bill would simply codify the CFTC’s existing regulations and reaffirm tribal and state government authority over online sports betting.”
H.R. 7840 would prohibit event contracts connected with unlawful activity, terrorism, assassination, war, gaming, US elections and government conduct. Its definition of gaming would include sport, while allowing individual states to authorise specified contracts.
Kalshi and other federally registered prediction-market platforms maintain that their sports products are derivatives rather than gambling and fall under CFTC jurisdiction.
The CFTC is currently led by Michael Selig, who is the agency’s sole commissioner. Tribal leaders have criticised the Commission’s support for prediction markets and its legal challenges against states seeking to restrict sports event contracts.
