The labor organization Unite Here has urged Congress to prohibit prediction markets from engaging in sports betting and casino-like event contracts, claiming that such offerings endanger employment in the regulated gaming sector and infringe upon Tribal sovereignty and state gambling regulations.

“Prediction markets are jeopardizing valuable, unionized positions within the gaming sector. More than 100,000 Unite Here members are employed in Tribal and commercial casinos,” stated Unite Here President Gwen Mills. “Their jobs are now at risk due to prediction markets operating illegal sports bets, disregarding Tribal sovereignty and state regulations throughout the nation.”

The union’s request arises as legislators evaluate the CLARITY Act, which centers on cryptocurrency market structure. Even though the legislation does not specifically target prediction markets, detractors assert that clarity in the legal framework for decentralized finance platforms could indirectly aid prediction market exchange operators.

As momentum grows for the CLARITY Act, Unite Here implored Congress to act against prediction markets. “Immediate legislative action is necessary to outlaw prediction markets from facilitating sports betting and casino-style activities,” Mills emphasized.

Additionally, the union endorsed the Prediction Markets Are Gambling Act (S. 4160), a proposal supported by U.S. Senators Adam Schiff, Catherine Cortez Masto, and John Curtis. Unite Here asserts that this legislation would reaffirm congressional intentions, ensuring gambling remains under the jurisdiction of Tribal and state governance.

“As the Senate discusses cryptocurrency market structure, it is crucial to reaffirm congressional intent that gambling is regulated by Tribal and state authorities,” Mills remarked.

Unite Here contended that regulated Tribal and commercial gaming operators have significantly invested in physical casinos and sportsbooks, thereby generating employment and economic advantages for nearby communities.

The union noted that casino employees have achieved better wages, healthcare benefits, and retirement stability through collective bargaining agreements, warning that the rise of prediction markets could jeopardize these advancements.

“Stable casino employment allows our members to purchase their first homes, fund their children’s education, and reduce their work hours to spend more time with their families,” Mills stated. “We will not permit prediction markets to threaten our jobs or reverse our progress.”

Unite Here’s stance aligns with concerns raised by the American Gaming Association. Recently, AGA President Bill Miller informed a Senate subcommittee that prediction market operators, such as Kalshi and Polymarket, could be evading state gambling rules by offering contracts on sporting events.

Prediction market firms argue that their products are governed by the Commodity Futures Trading Commission and as such, they are subject to federal oversight rather than state gaming authorities.