Publication Date: June 22, 2026, 11:01 AM.

Updated on: June 22, 2026, 11:16 AM.

• The AGA is requesting Congress to implement a ban on trading in sports prediction markets
• The AGA believes that the Commodity Futures Trading Commission has overstepped its boundaries by permitting platforms like Kalshi to offer sports-related contracts across the country
• Bipartisan lawmakers have put forth the Prediction Markets Are Gambling Act, aiming to prevent the CFTC from authorizing sports betting and casino-style contracts

The American Gaming Association (AGA), along with various gaming and related trade organizations, is urging the U.S. Congress to legislate against trading on prediction markets.

The Commodity Futures Trading Commission (CFTC) regulates prediction markets at the federal level. Since the second term of the Trump administration, this independent agency has allowed prediction markets to extend their trading to include sporting events.

For example, one can buy shares for the Argentina vs. Austria World Cup match scheduled for today. As of now, approximately $31 million has been traded in relation to this event.

The AGA argues that such trading should be classified as sports betting, asserting that the CFTC’s endorsement of prediction markets for such purposes violates both federal law and state rights.

“By providing nationwide sports betting through so-called ‘sports event contracts’ and promoting them as federally regulated financial products, these platforms are circumventing state and tribal regulations, undermining consumer protections, and destabilizing a system reliant on local governance — one that creates jobs, generates tax income, and finances community initiatives,” the AGA’s correspondence stated.

The letter addressed to the U.S. Senate included support from the Indian Gaming Association, the Association of Gaming Equipment Manufacturers, the National Thoroughbred Racing Association, several state gaming regulatory bodies, along with nearly two dozen labor unions. 

Call to Congress

Michael Selig, the CFTC chair selected by Trump, asserts that trading in sports fits the definition of “innovation” within prediction markets. Conversely, the AGA maintains that trading in sports event contracts is not akin to financial investment but instead a form of gambling, prohibited under the Commodity Exchange Act.

“The CFTC’s mandate is to oversee commodities and derivatives markets, explicitly excluding gambling and sports wagering. It lacks the necessary expertise and framework to effectively regulate nationwide sports betting, especially when robust state and tribal systems are already in place,” the AGA’s letter elaborated.

“While legal disputes may eventually clarify the issue, the ultimate resolution lies in congressional intent. Congress should act now to address the ongoing nationwide expansion of gambling. It should utilize crypto legislation to confirm the principle that sports betting is beyond the CFTC’s jurisdiction and cannot be conducted via prediction markets,” the letter suggested.

Proposed Federal Legislation

In March, U.S. Senators John Curtis (R-UT) and Adam Schiff (D-CA) introduced the Prediction Markets Are Gambling Act, a bipartisan proposal designed to prevent the CFTC from permitting prediction markets to facilitate trading on sports or any casino-style games.

“Sports prediction contracts are effectively sports wagers — just with different terminology. Yet, these contracts are currently available in all 50 states, in violation of both state and federal law,” stated Schiff.

“Instead of enforcing the law, the CFTC is allowing these markets to thrive and even encouraging their expansion. It is crucial for Congress to intervene and close this loophole that infringes on state consumer protections, disrupts tribal sovereignty, and yields no public revenue,” Schiff concluded.

The Prediction Markets Are Gambling Act is currently under consideration by the Senate Committee on Agriculture, Nutrition, and Forestry.