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Senate Unveils Bipartisan Bill To Bar Sports and Casino-Style Contracts on CFTC-Regulated Prediction Markets

The proposal would steer sports-style wagers off federal derivatives venues to state gambling oversight.

Overview

  • The measure, sponsored by Sens. Adam Schiff and John Curtis, would prohibit any CFTC-registered entity from listing contracts tied to sporting events or casino-style games.
  • Branded the Prediction Markets Are Gambling Act, it is the first bipartisan Senate effort aimed specifically at curbing sports offerings on platforms like Kalshi and Polymarket.
  • State actions have accelerated the fight over jurisdiction, with Nevada securing a temporary restraining order against Kalshi and Arizona filing criminal charges against its parent companies.
  • The CFTC has asserted exclusive federal authority over event-based contracts in recent court filings, setting up a direct conflict with state regulators and ongoing lawsuits.
  • Industry stakes are high, with sports-betting stocks such as DraftKings and Flutter rising on the news, MLB newly partnering with Polymarket, and recent reports of billion‑dollar trading volumes around major events like the Super Bowl.