A new bipartisan initiative introduced in the U.S. Senate seeks to impose restrictions on prediction markets concerning sports and similar activities, as lawmakers address mounting apprehensions regarding the proliferation of this sector across the nation.
The proposed legislation, referred to as the Prediction Markets are Gambling Act, is spearheaded by Utah Republican Sen. John Curtis, with Democratic co-sponsors Sen. Adam Schiff (California) and Sen. Catherine Cortez Masto (Nevada), as reported by Utah Public Radio.
This bill would ban firms from providing prediction contracts tied to sporting events, athletic contests, and casino-like games, a measure that supporters argue aims to rectify regulatory shortcomings in emerging online betting platforms.
“This is a topic that is gradually entering public awareness,” Curtis stated. “My co-sponsors and I are not attempting to address every issue associated with predictive markets; instead, we are focusing on a specific aspect with this legislation.”
Curtis indicated that he anticipates little economic disruption. “Anyone familiar with gambling recognizes it as a regressive tax; thus, the repercussions of not regulating this could be more harmful,” he noted.
This initiative coincides with a rise in participation in prediction betting platforms, where individuals wager on potential outcomes of forthcoming events. A survey conducted by the Siena Research Institute and St. Bonaventure University revealed that 27% of Americans currently maintain active accounts on online prediction markets, a trend that has consistently increased in recent years.
Despite Utah’s strict gambling prohibition lasting over a century, prediction markets such as Kalshi and Polymarket remain accessible to residents, circumventing these restrictions.
Recently, Utah legislators passed House Bill 243, which clarifies that proposition bets are categorized under the state’s definition of gambling, aiming to address existing loopholes in the gambling law.
The U.S. Senate is also reviewing another measure entitled the Public Integrity in Financial Prediction Markets Act of 2026, which would prevent government officials from utilizing non-public information for trading in prediction contracts. Curtis and Schiff are again co-sponsoring this legislation, together with Sen. Elissa Slotkin (Michigan) and Sen. Todd Young (Indiana).
Utah Attorney General Derek Brown is concurrently leading efforts against illegal gambling at the state level, joining 49 other attorneys general in August to call on the U.S. Department of Justice to intensify enforcement against offshore gambling schemes. Brown argues that these platforms expose users to risks of fraud, addiction, and exploitation.
While several related proposals are under deliberation, Curtis expressed optimism that the sports prediction bill could successfully pass, stating that he is ready to reintroduce it if it becomes necessary.
Moreover, he pointed out that additional gambling-related measures are being examined and anticipates ongoing federal interventions, highlighting the Senate’s growing concern over the increase in gambling activities nationwide.
“What you can expect from the Senate is not a brief list of bills addressing these markets,” Curtis remarked. “It is clear to my colleagues and me that this is a significant issue that demands prompt action.”