On March 23, 2026, Senators Adam Schiff (D-Calif.) and John Curtis (R-Utah) introduced a bipartisan bill in the Senate aimed at banning prediction markets such as Kalshi and Polymarket from accepting or listing transactions related to sports events and casino-style games [1]. The legislation, named the Prediction Markets Are Gambling Act, marks the first bipartisan effort in the Senate to address the growing trend of sports betting on these platforms, which operate under federal oversight via futures or commodity contracts, rather than traditional state-regulated sports gambling [1].
Senator Schiff stated, “Sports prediction contracts are sports bets — just with a different name,” emphasizing that these contracts are currently offered nationwide in violation of state and federal law [1]. He further argued that Congress needs to intervene to close this loophole, which undermines state consumer protections, tribal sovereignty, and fails to generate public revenue [1]. Senator Curtis echoed these concerns, highlighting the exposure of young people in Utah to addictive sports betting and casino-style gaming contracts, and stressing the importance of returning regulatory authority to the states [1].
The bill would prohibit any entity registered with the Commodity Futures Trading Commission (CFTC) from listing or facilitating any agreement, contract, or transaction related to sporting events or athletic competitions, as well as similar contracts for casino-style games like poker or blackjack [1]. The CFTC, established in 1974, has exclusive regulatory authority under the federal Commodity Exchange Act for futures, options, and swaps involving registered commodities entities. Both Kalshi and Polymarket are registered with the CFTC as designated contract markets [1].
Prediction markets have experienced a surge in popularity in the United States, with over $1.2 billion in total trading during this year’s Super Bowl Sunday and weekly trading volumes exceeding $4.5 billion [1]. These companies have also attracted significant venture capital interest, with Kalshi reportedly securing a $22 billion valuation in its latest funding round, and Polymarket aiming for a similar valuation [1]. To attract users, both platforms have launched innovative marketing initiatives, such as free grocery stores and trading-themed bars [1]. However, they have also faced increasing scrutiny regarding insider trading [1].
CONCLUSION
The Senate's bipartisan bill represents a significant regulatory move targeting prediction markets' involvement in sports and casino-style betting. With trading volumes and valuations soaring, the proposed legislation could have substantial implications for both the platforms and their users. The market reaction is likely to be pronounced, given the scale of trading and the high-profile nature of the companies involved.