Rosen Joins Senate Colleagues in Protecting State and Tribal Rights to Regulate Prediction Markets

WASHINGTON, DC - U.S. Senator Jacky Rosen (D-NV) joined Senate colleagues in urging the Financial Services and General Government Appropriations Subcommittee to prohibit the use of federal funds to prevent states and Tribal nations from regulating online prediction markets. In the last few months, the Commodity Futures Trading Commission (CFTC) has sued several states for attempting to put proper safeguards on and regulating prediction markets such as Kalshi and Polymarket. In March, the Nevada Gaming Control Board banned popular online prediction market sites Kalshi and Polymarket from operating in Nevada.

"Recent lawsuits filed by the CFTC against states regulating online prediction markets will only fuel a gambling public health crisis and interfere with states' and Tribes' longstanding prerogative to regulate or even restrict gambling," wrote the Senators. "Online prediction markets, which have rapidly grown in popularity, are drastically different from the original intent of event contracts, which those companies claim to offer. Serving to hedge against financial risks, event contracts were largely limited to the agricultural sector and economic matters. Prediction markets, however, have distorted this purpose and infiltrated the world of sports, politics, and even foreign affairs.

"Further, as prediction markets have sought to circumvent state safeguards, their products have led to underage gambling, gambling addiction, and serious financial losses." the Senators continued. "Through engaging in this campaign of litigation and intimidation, the CFTC risks becoming an instrument and enabler of online prediction markets' efforts to bypass states' consumer protections and oversight, creating a race-to-the-bottom in gambling."

You can read the full letter HERE.

Senator Rosen has been vocal about the need for more regulation on online prediction markets at the federal level. In April, she joined senate colleagues in a letter urging the CFTC to crack down on insider trading and political event contracts on prediction markets. During a May hearing in the Senate Commerce Committee, Senator Rosen raised significant concerns about the risks of unregulated prediction markets circumventing consumer protection rules. Senator Rosen has also said on record that prediction markets "should not be allowed to continue offering prediction contracts that clearly violate state consumer protections and gaming laws."

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