IGA Urges Congress to Restrict Prediction Markets

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Fri Jul 17, 2026, 12:00 pm ET

Read Time: 4 minutes

IGA Urges Congress to Restrict Prediction Markets

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The Indian Gaming Association (IGA) is urging Congress to restrict sports prediction markets under the proposed CLARITY Act.

Tribal leaders recently met senators and congressional staff on Capitol Hill during the IGA's 2026 Summer Legislative Summit. They want lawmakers to prevent federally regulated prediction markets from offering sports and casino-style event contracts.

Additionally, the association is pushing for explicit protections for existing tribal, state, and federal gaming laws.

Tribal leaders caution that allowing prediction markets to operate nationwide without these safeguards poses a direct threat to their sovereignty and revenue.

The debate has become a major issue across USA gambling as prediction market operators challenge traditional gaming regulations.

IGA Urges Congress and Senate to Block Prediction Markets Under CLARITY Act

The CLARITY Act seeks to establish a federal regulatory framework for digital assets and commodities. It would divide oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

The House previously approved the legislation by a 294-134 vote. Meanwhile, the Senate is now considering the bill while lawmakers negotiate its final provisions.

The IGA wants senators to add language that would prevent prediction markets from offering sports and casino-related event contracts.

The association also wants lawmakers to clarify that the CLARITY Act cannot override existing gaming laws. That includes the Indian Gaming Regulatory Act and agreements between tribal governments and states.

Tribal gaming leaders argue that prediction markets use financial terminology to offer products that function like sports wagers. They say this approach could allow platforms to bypass rules governing regulated gaming.

Those rules include licensing requirements, consumer protections, and state or tribal oversight.

The IGA says the issue could also affect the competitive landscape for US online sportsbooks. Traditional sportsbooks must comply with state regulations and often operate through tribal partnerships.

Prediction market platforms could instead offer sports contracts under federal commodities rules. That difference has intensified concerns across the USA gambling industry.

IGA Chairman David Bean described the threat in stark terms.

"Indian Country is united because this is one of the greatest threats tribal government gaming has faced in a generation,"

Bean added, "By relying on the fiction that sports bets are 'swaps,' the prediction markets undermine tribal sovereignty, violate the government-to-government agreements tribes have built with their states, and threaten the revenues our tribal nations depend on to fund healthcare, education, housing, public safety, language preservation, and essential government services."

Tribes Work With Lawmakers to Explain Prediction Market Concerns

The IGA is also working directly with lawmakers to explain the broader consequences of prediction markets. 

Tribal leaders believe their concerns extend beyond gaming competition. They argue the issue involves sovereignty, consumer protection, and the future of federal gaming regulation.

IGA Executive Director Jason Giles said tribal representatives have seen growing interest from lawmakers and other industries.

"We're seeing encouraging developments in the courts, increased attention from senators, and growing concern from states and industries beyond Indian Country that are beginning to recognize the serious consequences of unregulated prediction market gambling in our society. Our work now is making sure Congress understands that this is not simply a gaming issue. It is an issue of tribal sovereignty, consumer protection, and preserving the integrity of federal and state gaming regulation."

Giles added, "Every conversation we have on Capitol Hill moves this issue forward. Our greatest advocates are tribal leaders themselves. When senators hear directly from the governments and communities affected, they understand this is about protecting governmental revenues that support real people and real services."

The IGA says direct conversations with tribal leaders can help lawmakers understand the stakes. It is now seeking support for amendments before the Senate completes its work on the legislation.

Prediction Markets Put US Tribes and Operators on Opposite Sides

The current landscape has created a growing conflict between tribal gaming interests and prediction market operators.

Tribes argue that sports event contracts amount to sports betting. They therefore believe states and tribal governments should retain authority over those products.

Prediction market operators instead argue that their contracts qualify as financial products. That distinction has sparked legal and regulatory battles across the United States.

Several tribes have challenged prediction markets in federal court. The disputes focus on whether federal commodities regulation can override tribal gaming authority.

For instance, the conflict recently played out in California, where federally recognized tribes challenged Kalshi's sports event contracts.

Similar conflicts have also emerged between prediction markets and state regulators. The IGA now wants Congress to resolve the issue through legislation.

Its proposed amendments would block sports and casino-style event contracts from gaining protection under the CLARITY Act.

The association says this approach would preserve existing gaming frameworks. It would also prevent prediction markets from gaining a nationwide advantage over regulated US online sportsbooks.

For tribal leaders, the Senate debate represents a crucial moment. They believe lawmakers must decide whether sports prediction markets belong within financial regulation or existing gaming systems.

The IGA is pushing for Congress to make that answer clear before the CLARITY Act advances further.

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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