Bipartisan bill would ban prediction markets for sporting events
NBC Sports • • business
Key Points:
- Senators Adam Schiff (D-Cal.) and John Curtis (R-Utah) plan to introduce bipartisan legislation to prohibit prediction-market exchanges regulated by the Commodity Futures Trading Commission (CFTC), such as Kalshi and Polymarket, from listing contracts related to sporting events.
- The bill would also ban casino-style games on prediction-market platforms, aiming to protect young people from addictive sports betting and gambling activities, which Senator Curtis argues should be controlled by states rather than federal regulators.
- This legislative move comes amid ongoing disputes between the CFTC and states over the regulation of prediction markets, highlighted by recent legal actions against Kalshi in Arizona and Nevada.
- The bill could significantly impact partnerships like Major League Baseball's recent deal with Polymarket, potentially reducing the relevance and value of such arrangements if the legislation passes.
- The emerging conflict reflects a broader financial battle between established sports betting companies like DraftKings and FanDuel and prediction market platforms, centered on controlling the lucrative sports wagering market.
