A bipartisan initiative is anticipated to be introduced on Monday by Senators Adam Schiff and John Curtis, aiming to prohibit sports betting and “casino-style” contracts from prediction markets overseen by the Commodity Futures Trading Commission (CFTC). The proposed measure reflects growing concerns regarding youth exposure to gambling, with Senator Curtis emphasizing the need for state control over these activities rather than federal regulation.
This legislative move comes amid increasing scrutiny of prediction markets, particularly following concerns about insider trading linked to geopolitical events, such as the US-Israeli conflict. Recently, the CFTC signaled its intent to classify event contracts in prediction markets as a financial asset class and has sought public input on how the Commodity Exchange Act might apply to these markets.
Sports betting remains a significant driver of activity on platforms like Polymarket and Kalshi, with a reported $1.2 billion and $2.6 billion in weekly trading volumes, respectively. Last week, sports-related contracts represented 47.7% of Polymarket’s volume and 78.8% for Kalshi, highlighting the prominence of sports betting within the prediction market landscape.