U.S. gaming groups are calling on lawmakers to include language in crypto market structure legislation that would explicitly ban prediction markets tied to sports and casino-style wagering, according to a Tuesday report from Semafor.
In a letter to the Senate cited by Semafor, the industry groups — including the American Gaming Association, the Indian Gaming Association, and the Association of Gaming Equipment Manufacturers — wrote that prediction markets have "fueled the largest expansion of gambling" in U.S. history without proper voter approval or legislative authorization.
"By offering nationwide sports betting through so-called 'sports event contracts' and branding it as a federally regulated financial product, these platforms have bypassed state and tribal law, weakened consumer protections, and undercut a system built on local control — one that supports jobs, generates tax revenue, and funds community priorities," the letter said.
The letter argued that prediction market platforms put younger users at risk by offering inadequate responsible gaming protections while presenting gambling products as investments. It also suggested that the Commodity Futures Trading Commission was not created to regulate gambling or sports wagering, as the agency "lacks both the expertise and the infrastructure to police nationwide sports betting."
