Date of publication: June 4, 2026, 02:58h.
Last modified: June 4, 2026, 02:58h.
- Union calls on Congress to prohibit sports event contracts as the CLARITY Act progresses
- This legislation could benefit decentralized markets
- Union claims sports derivatives jeopardize gaming employment
As momentum builds for the CLARITY Act, a prominent gaming and leisure union urges Congress to outlaw prediction markets from offering contracts tied to sports and casino events.
Representing over 100,000 workers in commercial and tribal casinos, Unite Here asserts that the employment of its members could be endangered if Congress permits prediction markets to provide casino-style wagers, including those linked to sports.
“Their livelihoods face threats from prediction markets engaging in unlawful sports betting that violates Tribal sovereignty and state regulations nationwide,” stated Gwen Mills, President of Unite Here. “Congress must act swiftly to prohibit prediction markets from conducting sports betting and casino-style games.”
Originally known as the Digital Asset Market Clarity Act, the CLARITY Act aims to advance the cryptocurrency sector in the US but does not specifically address the capacity of prediction markets to provide sports derivatives. Critics are concerned that if enacted, the legislation could eliminate legal uncertainties surrounding decentralized finance (DeFi) platforms, facilitating broader institutional acceptance. Platforms like Polymarket and others offering binary options qualify as DeFi entities.
Unite Here Claims Prediction Markets Threaten Employment
Unite Here’s appeal to Congress comes shortly after the American Gaming Association (AGA), the trade group representing companies that employ Unite Here members, took a similar position.
In his testimony before a Senate subcommittee, AGA President Bill Miller indicated that prediction markets such as Kalshi and Polymarket are bypassing state regulations by offering sports derivatives which could undermine consumer protections and Tribal sovereignty.
Traditional sports betting is governed by state laws. In states like Florida, where Native American tribes hold exclusive gaming agreements, these tribes collaborate with state authorities to set sports betting regulations. On the other hand, the prediction markets industry contends that they are not subject to such restrictions as they are regulated federally by the Commodities Futures Trading Commission (CFTC).
Unite Here believes that prediction markets are essentially stealing business from commercial and tribal casinos, viewing this as a direct threat to their members’ jobs.
“Stable casino jobs enable our members to purchase their first homes, fund their children’s education, and reduce the need for additional employment, allowing for more family time,” Mills emphasized. “We will oppose any attempts from prediction markets to undercut our jobs and reverse our progress.”
Unite Here’s Stance Receives Bipartisan Backing
Whether Congress will modify the CLARITY Act to include stricter regulations on prediction markets remains uncertain. Nevertheless, there is evident bipartisan support for recognizing that yes/no exchanges are introducing a new variant of sports betting, merely portraying it as a financial instrument.
The freshly introduced Prediction Markets Are Gambling Act garners support from senators across the political spectrum from states with significant numbers of commercial and tribal casinos, as well as from lawmakers from states that typically oppose gaming. Unite Here advocates for the passage of this bill.
“As the Senate deliberates on cryptocurrency market structure legislation, it is crucial to reaffirm that gambling is regulated by Tribal and state authorities,” Mills concluded.