Gaming groups urge Senate to block sports prediction markets

A coalition of gaming organizations sent a letter to the U.S. Senate on June 16 urging lawmakers to prohibit sports and casino-style event contracts in the pending crypto market structure bill. The groups warned that prediction markets have become the largest gambling expansion in American history over the past 18 months, all without voter or legislative approval.

The letter targets the CLARITY Act, which has been delayed amid debate over how to regulate digital assets. The groups argue that platforms offering sports event contracts have effectively created a nationwide sports betting market under the guise of federally regulated financial products. They said these services circumvent state and tribal laws, erode consumer protections, and threaten local regulatory frameworks.

The signatories also raised concerns about age restrictions, noting that some platforms allow bettors as young as 18 to place wagers in jurisdictions where sports betting is illegal. The letter claimed the Commodity Futures Trading Commission lacks the expertise and infrastructure to police nationwide sports betting, arguing the agency was never designed to regulate gambling or sports wagering.

Despite the opposition, the White House remains optimistic about passing the crypto market structure bill by the original deadline of July 4. Chief Crypto Advisor Patrick Witt said, "Every day, we're doing trifecta. Mornings or afternoons on Ag, ethics, and BRCA."