Gaming Coalition Pushes Ban on Prediction Markets

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Fri Jun 19, 2026, 7:00 am ET

Read Time: 4 minutes

Gaming Coalition Pushes Ban on Prediction Markets

industry

A gaming coalition of industry stakeholders is urging Congress to restrict prediction markets. They are pushing to prohibit sports-related contracts and casino-style offerings within pending cryptocurrency legislation.

The coalition argues that federally regulated prediction markets have expanded into territory traditionally overseen by state gaming regulators. As a result, industry groups contend that these platforms now compete directly with licensed operators, including US online sportsbooks, tribal gaming enterprises, and regulated US online casinos.

The effort centers on legislation currently moving through Congress and marks the latest escalation in a growing conflict between the gaming industry and prediction market operators.

Members of the coalition include commercial gaming groups, tribal gaming organizations, labor representatives, gaming equipment manufacturers, and anti-iGaming advocates that oppose the expansion of online gambling products:

  • American Gaming Association (AGA)
  • Association of Gaming Equipment Manufacturers (AGEM)
  • California Nations Indian Gaming Association (CNIGA)
  • Indian Gaming Association (IGA)
  • Nevada Resort Association (NRA)
  • North American Gaming Regulators Association (NAGRA)
  • American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
  • UNITE HERE

Although their priorities differ, the groups share concerns that prediction markets are moving into areas traditionally regulated by state gaming authorities. 

Together, the coalition has called on lawmakers to prevent prediction markets from offering sports-event contracts and casino-style products under federal commodities laws.

Gaming Industry Groups Say Prediction Markets Are Bypassing State Gambling Laws

The coalition's primary argument is that prediction markets are operating as de facto gambling platforms while avoiding the state-by-state regulations that govern traditional wagering.

According to the groups, operators are using federal commodities laws and oversight from the Commodity Futures Trading Commission (CFTC) to offer products that closely resemble sports betting. They argue that this framework allows prediction markets to bypass state gambling laws, licensing requirements, consumer protections, and tax obligations.

Industry stakeholders also contend that sports-event contracts mirror wagers already available through regulated sportsbooks. Consequently, they believe these markets create an uneven playing field for licensed operators that must comply with extensive state regulations.

Economic Impact Also In Question

The dispute has evolved into a major economic battle as well. The AGA estimates that states have lost up to $1 billion in gaming tax revenue because bettors are increasingly shifting to federally regulated prediction platforms instead of localized sportsbooks. 

Industry groups warn that this trend could continue if prediction markets expand into additional sports and gaming-related products.

Furthermore, opponents argue that casino-style contracts could eventually compete with offerings currently available through regulated US online casinos and tribal gaming operators.

Why Opponents Are Using Crypto Legislation to Target Prediction Markets

The coalition has attached its concerns to the Digital Asset Market Clarity Act (HR 3633). This is a sweeping cryptocurrency bill designed to establish a regulatory framework for decentralized finance and digital asset markets. HR 3633 passed the House in 2025 and now faces a soft target deadline in the Senate around July 4.

The Gaming coalition view the bill as the most effective legislative vehicle for addressing prediction markets. Rather than pursuing separate gaming legislation, they want Congress to include language that would clearly prevent sports-event contracts and casino-style prediction products from operating under the digital asset framework.

Supporters of the effort believe the measure would draw a bright line between federally regulated financial products and state-regulated gambling activities.

The strategy reflects a growing belief among gaming stakeholders that Congress may be better positioned than regulators or courts to settle the jurisdictional dispute. 

By leveraging the Digital Asset Market Clarity Act, opponents hope to establish clear statutory limits before prediction markets further expand their offerings.

Where the Prediction Market Fight Could Head Next

The battle over prediction markets is increasingly shifting beyond the courts and into Congress and federal regulatory agencies.

Several states have already drawn clear battle lines against prediction market operators. Nevada has challenged the expansion of sports-event contracts. Meanwhile, Ohio regulators have also raised concerns about their impact on state gaming oversight. 

Minnesota has likewise joined broader efforts questioning whether these products should fall under gambling regulations instead of commodities law. They've also gotten lawsuits from prediction markets like Kalshi and Polymarket.

Federal vs State Regulation

At the federal level, attention remains focused on the CFTC, which continues to evaluate how prediction markets should be regulated. At the same time, gaming stakeholders are intensifying lobbying efforts in Washington.

Recent court victories and regulatory developments have strengthened prediction market operators' arguments that they fall under federal commodities law. However, state regulators and gaming organizations continue to push back. This could set up a prolonged fight involving Congress, the CFTC, and multiple state governments.

The outcome could reshape the future relationship between prediction markets and traditional gambling operators. If Congress adopts the coalition's proposals, prediction markets may face significant restrictions on sports-related contracts and casino-style offerings. 

That said, if operators successfully defend their federal status, they could continue expansion. Traditionally-occupied markets by US online sportsbooks, tribal gaming operators, and regulated US online casinos could eventually have prediction markets.

For now, the dispute remains one of the most consequential regulatory battles facing the American gaming industry.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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