US Senate Introduces Bipartisan Bills to Ban Sports Prediction Market Betting

WASHINGTON D.C., United States, March 26, 2026 — Two separate bipartisan bills introduced in the United States Senate last week are targeting the explosive growth of sports betting on financial prediction markets, seeking to ban platforms such as Kalshi and Polymarket from listing contracts tied to sports outcomes. The legislative push marks the most serious federal challenge yet to an industry that grew dramatically through 2025, exploiting a regulatory grey zone between commodity trading and traditional sports gambling.

Background

Prediction markets operate under a different regulatory framework than traditional sportsbooks. While state-licensed sports betting is governed by individual states following the 2018 repeal of PASPA, prediction market platforms such as Kalshi and Polymarket hold licenses from the Commodity Futures Trading Commission (CFTC), allowing them to operate in all 50 states. This loophole has enabled them to offer effectively identical sports wagering products to regulated sportsbooks — without the same responsible gambling requirements, age verification standards, or state oversight that traditional operators must meet.

The issue came to a head in 2025 after a series of high-profile integrity incidents involving suspicious betting patterns flagged on prediction market platforms outside state regulators’ jurisdiction. According to iGaming Business, these scandals accelerated calls for federal action that had been building throughout 2025.

Key Details

Two bills were introduced within days of each other in late March 2026:

• The Prediction Markets Are Gambling Act — co-sponsored by Senators Adam Schiff (D-Calif.) and John Curtis (R-Utah). This bill amends the Commodity Exchange Act to explicitly ban prediction contracts related to sports events or casino-style games.
• The STOP Corrupt Bets Act — introduced by Senators Jeff Merkley (D-Ore.) and Elizabeth Warren (D-Mass.) with Representative Jamie Raskin (D-Md.). This bill takes a broader approach, banning prediction market contracts on sports, elections, military events, and government actions.

Both bills command rare bipartisan support. Supporters argue the contracts are “currently offered in all fifty states in clear violation of state and federal law,” citing existing prohibitions under the Wire Act and various state anti-gambling statutes.

Industry Impact

The impact on the prediction market industry could be existential if either bill passes. Kalshi, which went public via IPO in 2025 and reported over $2 billion in sports contract volume in Q4 2025, saw its share price drop more than 18% following news of the bills. Traditional licensed sportsbooks — including DraftKings, FanDuel, BetMGM, and Caesars — broadly welcomed the legislation. The American Gaming Association (AGA) stated that “all sports wagering products should be subject to the same consumer protection and integrity standards, regardless of legal classification.”

Polymarket, which remains privately held and headquartered outside the US, may face restrictions on serving American users. Both platforms have stated they intend to challenge any legislative action through the courts, setting up a protracted legal battle that could reach the Supreme Court.

What This Means for Players

For everyday bettors currently using Kalshi or Polymarket to wager on sports, the bills represent a potential forced migration back to state-regulated sportsbooks. The push for tighter regulation mirrors what we are seeing in Asian markets too. Players looking for regulated, trustworthy options can explore our BK8 Casino Malaysia review as an example of the kind of licensed, responsible operator profile worth seeking out. The key takeaway: always choose a platform explicitly licensed and regulated in your jurisdiction.

What’s Next?

Both bills face significant procedural hurdles, with no committee hearings scheduled and Congress working through a packed appropriations calendar. Analysts give the Schiff-Curtis bill a slightly better chance of advancing given its narrower scope. Regardless, the message from Capitol Hill is clear: the era of prediction markets operating in an unregulated grey zone appears to be drawing to a close, and operators and players alike should prepare for a fundamentally different US gambling landscape by 2027.