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Senate Bill Targets Prediction Markets as Gambling

Are prediction markets a gambling loophole that cheats states out of revenue or a legitimate federally regulated industry?

Published MAR 24·Updated MAR 26

Senate Bill Targets Prediction Markets as Gambling

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Above: Polymarket sports bets are displayed at the company's pop-up bar in Washington, D.C., on March 20. Image credit: Théo Marie-Courtois/Getty Images

The Spin

Narrative A

Sports prediction contracts are just sports bets with a fancy name, and letting them operate in all 50 states — including states where gambling is outright banned — is a regulatory loophole that cheats states out of revenue and ignores tribal sovereignty. The CFTC has abandoned its own 15-year enforcement record by greenlighting these markets instead of shutting them down. Congress must pass this vital regulation now.

ESPN.com Office of U.S. Senator Adam Schiff

Narrative B

Prediction markets are federally regulated exchanges that major leagues like MLB and the NHL are actively partnering with to build real integrity frameworks. MLB, for instance, locked in data-sharing agreements with the CFTC and Polymarket to restrict risky markets and protect the game, proving that this system works well. Banning these markets would kill a legitimate, transparent industry that's already earned its place.

Kalshi MLB.com