TLDR Senators Adam Schiff and John Curtis introduced the Prediction Markets Act on Monday to regulate online prediction markets The bill aims to stop prediction platforms from offering sports bets without state licenses by bypassing CFTC oversight CFTC Chair Mike Selig had relaxed rules, allowing real-money bets in all 50 states without state licensing or local taxes State leaders including Utah Governor Spencer Cox and tribal gaming groups support the bill The legislation would ban any prediction contract that resembles a sports wager and preserve state control over gambling
Two U.S. senators from opposite sides of the aisle introduced a new bill on Monday aimed at cracking down on unregulated prediction markets. The Prediction Markets Act was brought forward by California Democrat Adam Schiff and Utah Republican John Curtis.
The bill targets online prediction platforms that currently operate under the oversight of the Commodity Futures Trading Commission. These platforms have been offering real-money bets on sports and games across all 50 states without obtaining state licenses or paying local taxes.
The issue centers on a regulatory gap. Prediction markets have used CFTC oversight to avoid the stricter rules that govern traditional sportsbooks and casinos at the state level.
Over recent months, CFTC Chair Mike Selig relaxed how the agency handles these platforms. He defended the agency’s authority over these markets and loosened enforcement.
That shift opened the door for prediction platforms to expand rapidly. They began operating in states where sports betting is either banned or heavily regulated.
Senators Take Opposing Paths to the Same Goal
Senator Schiff said that sports prediction contracts function exactly like traditional sports bets. He accused the CFTC of promoting what he called illegal markets rather than enforcing the law.
Schiff wants Congress to act now to protect state consumer regulations and