TLDR Two bipartisan federal bills aim to ban prediction market contracts on sports, elections and war, and prevent insider trading by government officials DraftKings fell 12% in a week to a 12-month low of $20.53, while Flutter dropped 4% to its lowest price since 2022 President Trump publicly endorsed prediction markets for the first time, calling them more accurate than “fake polls” Kalshi and Polymarket both rolled out new integrity rules to block politicians and insiders from trading on certain contracts Kalshi CEO called the proposed ban an effort to protect gambling monopolies, not consumers
Senator Adam Schiff and Senator John Curtis introduced the Prediction Markets Are Gambling Act on March 23. The bill would stop entities registered with the CFTC from listing event contracts that resemble sports bets or casino-style games.
The bill targets contracts tied to sporting events, elections and war. It would also prevent these contracts from overriding state law.
Schiff said the CFTC has been “greenlighting these markets and even promoting their growth” instead of enforcing the law. He called on Congress to step in.
Days later, Schiff and Curtis joined Senators Todd Young and Elissa Slotkin to introduce a second bill. The Public Integrity in Financial Prediction Markets Act of 2026 is aimed at stopping insider trading on prediction platforms.
That bill would ban elected officials and government employees from using nonpublic information to trade prediction market contracts. Violators would face fines of at least $500 or double the profit they made.
Wall Street Reacts to Proposed Prediction Market Restrictions
DraftKings fell to $20.53 per share on Friday, a fresh 12-month low. The stock dropped 12% over the course of the week.
Flutter also took a hit, falling 4% on the week and touching $100 per share for the first time since