The gaming industry is rallying alongside tribes and unions to call on lawmakers to include provisions in upcoming cryptocurrency legislation that would prohibit prediction markets, such as Kalshi, from facilitating sports wagers. This collective effort is highlighted in a letter obtained by Semafor, expressing a unified concern over the rapid growth of prediction markets in the gambling landscape.
The American Gaming Association (AGA), in collaboration with the Indian Gaming Association and unions like the AFL-CIO’s Hotel and Gaming Trades Council and UNITE HERE, emphasized that despite differing views on various gambling policies, they are aligned in their stance against the burgeoning influence of prediction markets. They argue that these platforms have significantly contributed to what they describe as the most extensive expansion of gambling in the United States in the last 18 months, occurring without voter consent or legislative oversight.
The AGA pointed out that this proliferation of gambling occurs at a time when Congress is considering regulations around cryptocurrencies. They urge lawmakers to seize this opportunity to reinforce a clear principle: sports betting should not fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC) and should not be accessible through prediction market platforms.
Furthermore, the AGA cited a staggering estimate, suggesting that states may have lost approximately $1 billion to prediction markets since the beginning of 2025—a figure that the prediction markets challenge. This ongoing debate underscores the complexities facing regulators as they navigate the intersection of rapidly evolving digital markets and traditional gambling frameworks, with potential implications for both state revenues and industry practices.
