TLDR Tribal leaders told a Senate committee that sports prediction markets act like sports betting without following tribal gaming rules. They said federal commodities law is being used to skip licensing and consumer protections required under the Indian Gaming Regulatory Act. Witnesses raised concerns that crypto legislation, the CLARITY Act, could open another loophole through its decentralized finance provisions. Tribal gaming generated $46.2 billion in revenue in 2025, and leaders worry prediction markets could cut into that money. No CFTC or prediction market company representative attended the roundtable to respond.
Tribal gaming leaders asked Congress to step in and control sports prediction markets. They say these platforms use federal commodities law to offer products that work like nationwide sports betting.
The Senate Indian Affairs Committee held a roundtable on August 4. Tribal representatives said sports contracts compete directly with regulated gaming but skip the licensing and consumer protection rules tribes must follow.
Prediction market operators say their products are financial derivatives. They argue this puts them under the Commodity Futures Trading Commission instead of state or tribal gaming law.
Tribes and a growing number of states disagree. They say these sports contracts are sports bets no matter what name is used.
Sports Contracts Compared to Bets
Senate Vice Chairman Brian Schatz said a person can bet on an NBA team winning the championship through a sportsbook or a prediction market app. He said the experience feels the same either way.
Jamie Hummingbird, chairman of the National Tribal Gaming Commissioners and Regulators, said calling a bet a contract does not change what it is. He pointed to DraftKings and FanDuel dropping their Nevada betting license plans to focus on prediction markets instead.
Tehassi Hill of the Indian Gaming Association said prediction markets offer the same features as sportsbooks.