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Two major gaming trade groups took their concerns directly to Capitol Hill as prediction platforms continue offering sports related contracts nationwide. The request focuses on closing what the groups describe as a growing gap between regulated sports betting and federally overseen prediction markets.
Lawmakers now face renewed pressure to address sports event contracts while crafting new rules for crypto and derivatives markets.
Good to Know
The American Gaming Association and the Indian Gaming Association jointly sent a letter to the US Senate and House of Representatives on Monday.
The letter urges lawmakers to use ongoing cryptocurrency market structure legislation to stop prediction platforms from offering sports contracts that the groups say are “indistinguishable from legal sports betting.”
“They have grown exponentially in trading volume and have expanded beyond the outcome of single games to include complex parlays and even potential wagers on the collegiate transfer portal,” the associations wrote in the letter. It added:
“This growth has occurred by exploiting regulatory inaction by the Commodity Futures Trading Commission (CFTC), which undermines state law and tribal sovereignty and flies in the face of existing federal laws and regulations intended to protect consumers and the integrity of our nation’s financial markets.”
The letter highlights the size of the regulated gaming sector represented by the two groups.
The group said in the letter:
“Together, our associations represent the legal regulated gaming industry in the United States that generates $329 billion in annual economic impact, produces $53 billion in tax revenue, and supports 1.8 million jobs.”
AGA and IGA argue that unchecked prediction markets threaten that system by shifting betting activity away from state regulated sportsbooks and tribal gaming operations.
Concern around prediction markets has grown since early 2025 as trading platforms expanded nationwide access. What started with election and economic contracts now includes sports related offerings available in all 50 states.
Platforms moved beyond simple win loss outcomes into multi leg structures that mirror sportsbook parlays. Some contracts also touched areas like college athlete movement, raising additional regulatory and integrity questions.
Prediction platforms operating during that period included Kalshi, followed later by launches tied to FanDuel and DraftKings in late 2025.
AGA and IGA emphasized differences in user protections between regulated sports betting and prediction platforms. Legal sportsbooks require users to be 21 or older. Prediction platforms typically allow participation starting at age 18.
The AGA and IGA said:
“They mislead consumers into believing that a sports bet is an investment, fail to protect the young and the vulnerable, open the door to money laundering, match fixing, and insider trading. They rob state budgets and tribal finances while simultaneously forcing states and tribes to expend massive legal resources to defend their sovereignty.”
The letter also references non sports contracts tied to the capture of Venezuelan President Nicolas Maduro and the Ukraine Russia conflict, where reports suggested profits tied to inside information.
A new cryptocurrency market structure bill landed in the Senate on Monday, aiming to establish a clearer federal framework for digital asset markets.
AGA and IGA want lawmakers to explicitly include sports event contracts in that legislation. The groups argue that the Commodity Futures Trading Commission has not shown intent to restrict sports related contracts under current leadership.
“However, Mr. Selig also said that the CFTC would follow Congress if they were to step in and speak on these contracts,” the AGA and IGA said. “Therefore, it is critical that Congress act swiftly to include legislative language in the cryptocurrency market structure legislation that reinforces existing law and prohibits gaming through CFTC-registered platforms. We stand ready to work with you on this issue and appreciate your consideration.”
The groups say sports event contracts function like sports betting without state or tribal oversight.
They want sports contracts explicitly restricted through crypto market structure legislation.
Prediction platforms often allow users at 18, while regulated sportsbooks require users to be 21.
Prediction platforms fall under oversight of the Commodity Futures Trading Commission.