Prediction Markets Are Gambling Act
Term Dictionary
If you come across any unfamiliar words while reading, these resources can help make everything clearer. Pick whichever one works best for you!
- Congress.gov Legislative Glossary - Comprehensive congressional terms
- NVFC Congressional Terms Glossary - Concise, easy-to-understand definitions
The gist
Bans trading of event contracts tied to sports or casino games (slots, blackjack, lottery) on federally regulated exchanges like Kalshi.
Who wins, who loses
- Wins: state-licensed casinos, sportsbooks like DraftKings, Nevada regulators, gambling addiction advocates.
- Loses: prediction market platforms (Kalshi, Polymarket), traders using sports contracts, Commodity Futures Trading Commission (CFTC) oversight approach.
What it does
- Amends the Commodity Exchange Act to block sports and casino-style event contracts from listing on registered exchanges.
- Defines casino games broadly: slots, poker, blackjack, roulette, bingo, lottery, and simulations.
- Covers amateur, college, and pro sports outcomes and statistical results.
- Explicitly preserves state authority to regulate gambling independently.
Why should I care?
Supporters say prediction markets are dodging state gambling laws by calling bets 'contracts,' hurting consumer protections and state tax revenue. Critics argue these markets provide legitimate price discovery and adults should freely trade on outcomes. An alternative: let the CFTC set stricter rules instead of a full ban. Where do you land? Vote below and use "Tell Your Rep" to make sure your voice reaches Congress.