NEWS: Sens. Schiff, Curtis Introduce Bipartisan Legislation to Ban Sports Prediction Market Contracts

The Prediction Markets Are Gambling Act is the first bipartisan bill introduced in the Senate seeking to regulate prediction markets

Washington, D.C. - Today, U.S. Senator Adam Schiff (D-Calif.) and Senator John Curtis (R-Utah) introduced the Prediction Markets Are Gambling Act, bipartisan legislation to prohibit Commodity Futures Trading Commission (CFTC) registered entities from listing any prediction contract that resembles a sports bet or casino-style game.

"Sports prediction contracts are sports bets - just with a different name. And yet, these contracts have been offered in all fifty states in clear violation of state and federal law. Rather than enforce the law, the CFTC is greenlighting these markets and even promoting their growth. It's time for Congress to step in and eliminate this backdoor which violates state consumer protections, intrudes upon tribal sovereignty, and offers no public revenue. I'm proud to partner with Senator Curtis to put a stop to these illegal markets," said Senator Schiff.

"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," said Senator Curtis. "Our bipartisan legislation clarifies regulatory jurisdiction, ensuring that states can maintain their authority over sports betting and casino gaming. The Prediction Markets Are Gambling Act is about respecting states' authority, protecting families, and keeping speculative financial products out of spaces where they don't belong," said Senator Curtis.

Currently, CFTC-registered entities offer a wide range of sports prediction contracts that are indistinguishable from gambling. Over the past year, sports prediction contracts have rapidly proliferated with next to no oversight or regulation from the CFTC. Prediction market platforms currently list sports contracts with tens of millions of dollars in trading volume: for example, a March Madness winner contract already has more than $100 million in trading volume, while Super Bowl trading volume on prediction markets surpassed $1 billion in 2026.

These contracts are listed in all 50 states, including states that have restrictions or prohibitions on sports betting. These contracts evade state and tribal consumer protections, generate no public revenue, and undermine sovereign tribal regulatory regimes. These contracts are also offered in states where gambling is restricted or illegal. In California, most forms of gambling are prohibited within the state under the state constitution, including casino-style gaming and sports betting. In Utah, state law prohibits all forms of gambling.

For fifteen years, the CFTC has enforced its authority to prohibit the listing of a contract that involves, relates to, or references, "gaming." However, the CFTC and its Chair have abruptly reversed course-intervening in ongoing litigation and proceeding with rulemaking to significantly relax the CFTC's enforcement of this clause. Now, the CFTC is entering into partnerships with entities like Major League Baseball to further facilitate these markets' growth.

The Prediction Markets Are Gambling Act would prohibit any CFTC registered entity from listing a contract that closely resembles a sports bet or a casino-style game, reinforces Congress' original intent that the Commodity Exchange Act does not permit sports gambling, and removes any ambiguity in the statute.

Background:

As a member of the Senate Agriculture Committee, Senator Schiff has raised the alarm about the current lack of regulation in this industry. Sen. Schiff led more than twenty Senators urging the CFTC to abstain from intervening in ongoing litigation, as Chairman Selig pledged to do in his confirmation hearing. He has also raised the alarm on the dangers of "death contracts," such as whether Artemis II would explode or whether Iran's Ali Khameni would be "out as Supreme Leader."

He wrote to the CFTC along with other Senators on the need for the CFTC to vigorously enforce a prohibition on these "death contracts." He subsequently introduced the DEATH BETS Act, legislation that would remove any regulatory discretion that the CFTC has to permit these "death contracts," explicitly and categorically prohibiting any CFTC registered entity from listing contracts on terrorism, assassination, war, or an individual's death.

The full text of the bill is available here.

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