- Senators Adam Schiff and John Curtis are set to introduce a bipartisan bill Monday that would ban sports betting and casino-style contracts from CFTC-regulated prediction markets.
- The proposal follows Senator Schiff’s earlier DEATH BETS Act and broader regulatory scrutiny, including recent CFTC actions and state-level legal challenges.
- Sports betting contracts represent a significant portion of trading volume on major prediction platforms like Polymarket and Kalshi, generating billions in notional weekly volume.
Bipartisan lawmakers are poised to introduce a new Washington bill on Monday that would prohibit sports betting contracts on federally-regulated prediction markets, according to a Wall Street Journal report. Senator John Curtis, a co-sponsor, told the WSJ “Too many young people in Utah are getting exposed to addictive sports betting and casino-style gaming contracts that belong under state control, not under federal regulators.”
This measure builds on recent legislative efforts targeting prediction markets. However, Senator Schiff previously introduced a separate bill, the DEATH BETS Act, aiming to prohibit war and death-related contracts. Consequently, regulatory pressure is mounting from multiple angles.
Meanwhile, sports markets are a primary driver of activity for major platforms. Sports-related contracts accounted for nearly half of Polymarket‘s and most of Kalshi‘s weekly notional volume, according to Dune data. This segment generated $1.2 billion in weekly volume for Polymarket and $2.6 billion for Kalshi.
The regulatory landscape is further complicated by jurisdictional disputes. On March 12, the CFTC issued an advisory classifying event contracts as a financial asset class and requested public feedback. Meanwhile, state courts have challenged the CFTC’s claimed exclusive jurisdiction, with a Nevada judge recently blocking Kalshi from offering certain contracts in the state for 14 days.
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