American gambling associations have urged the US Senate to ban sports and gambling-related prediction markets as part of a new cryptocurrency regulation bill.
According to the AGA, IGA, and AGEM organizations, these platforms illegally expand the gambling market without voter and state authority approval.
The authors of the appeal stated that these platforms disguise betting as financial products, allowing them to circumvent local laws, taxes, and consumer protection regulations. The gambling industry also believes that the US Commodity Futures Trading Commission (CFTC) lacks the resources to oversee betting activities.
“Congress must affirm: sports betting is not within the CFTC's jurisdiction and cannot be offered through prediction markets,” the letter emphasizes.
This demand comes amid discussions surrounding the CLARITY Act, which was previously approved by the Senate Banking Committee.
The largest players in the prediction markets segment remain Kalshi and Polymarket. In May, trading volume on Kalshi reached $16.8 billion, while Polymarket saw $7 billion.
It is worth noting that Indonesia's Ministry of Communication and Information Technology has blocked access to the Polymarket platform, equating the service to an online casino.