UNITE HERE Urges Ban on Prediction Market Sports Bets

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Mon Jun 08, 2026, 9:00 am ET

Read Time: 3 minutes

UNITE HERE Urges Ban on Prediction Market Sports Bets

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UNITE HERE is pressing Congress to ban prediction markets from offering sports event contracts. They issued a warning that the fast-growing products blur the line between trading and gambling. 

The casino workers' union argues that expansion in this sector could disrupt regulated gaming systems. It could also weaken long-standing employment tied to casinos and sportsbooks across the United States.

The dispute highlights a broader struggle between regulated gambling operators and financial-style prediction platforms entering sports-linked markets. While labor groups see economic risk, prediction market firms argue they are building a separate category of financial trading tied to real-world outcomes.

UNITE HERE Warns of Job Losses and Pressure on Casino Revenue

UNITE HERE, which represents more than 100,000 casino workers, says prediction markets threaten jobs tied to regulated gaming operations. The union argues that commercial casinos and tribal operators rely heavily on sports betting revenue to sustain wages, healthcare benefits, and local economic activity.

It also claims that prediction markets resemble gambling products while avoiding the full regulatory framework that governs US gambling and licensed digital wagering. According to the union, this creates an uneven competitive environment where traditional operators face stricter oversight than emerging platforms.

Union leaders warn that thousands of local hospitality careers, including housekeepers, dealers, and service staff, could face instability if betting activity shifts away from regulated casino and sportsbook ecosystems. This includes workers connected to US online sportsbooks, which operate under state licensing rules, taxation requirements, and compliance obligations.

UNITE HERE further argues that prediction markets could weaken tribal sovereignty by diverting activity away from tribal gaming compacts. As a result, the union frames the issue as both an employment concern and a structural challenge to regulated gaming systems.

Prediction market operators, including Kalshi and Polymarket, reject the idea that their products mirror traditional gambling. Instead, they say their contracts function as financial instruments that allow users to hedge risks or express views on event probabilities. 

They also argue these markets can produce useful macroeconomic signals and real-time sentiment data not available through traditional wagering channels.

UNITE HERE Pushes Congress Toward Stricter Classification and Bans

UNITE HERE is urging lawmakers to explicitly classify sports-related prediction contracts as gambling. Under this approach, such products would fall under established gaming laws rather than commodities or derivatives oversight frameworks.

The union is also backing a federal ban on sports event contracts offered through prediction platforms. Some proposals in Congress, including the Prediction Markets Are Gambling Act championed by lawmakers such as Senator Adam Schiff, seek to reinforce this distinction and keep sports outcomes within regulated gambling channels.

At the same time, broader legislative efforts like the CLARITY Act could shape how digital asset markets are defined, potentially affecting prediction platforms indirectly. Critics warn that without clear exclusions, such frameworks could unintentionally broaden the legal space for event-based trading products.

States and Regulators Clash with Expanding Prediction Markets

The regulatory environment remains fragmented as prediction markets continue to grow. Some platforms argue they operate under federal commodities law, which they claim overrides state gambling restrictions. This interpretation has sparked ongoing tension with state regulators and tribal authorities.

Meanwhile, states that oversee US gambling through licensing systems argue that prediction markets may bypass established safeguards and tax structures. Casino operators warn that this could weaken funding streams that support regulation, education, and local economic development.

Prediction market firms maintain that their systems differ fundamentally from sportsbooks. Their users trade on probability rather than betting against a house. They argue this distinction justifies separate treatment under financial market rules and supports innovation in event-based trading.

As Congress considers competing proposals, the outcome will determine whether prediction markets are regulated.

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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