Cantwell Demands Accountability for Prediction Markets Offering Sports Betting

Cantwell Demands Accountability for Prediction Markets Offering Sports Betting

Senator calls out prediction markets for threatening tribal communities and exposing children to predatory practices; In WA, gambling rates among high schoolers have spiked more than 40% since 2021

WASHINGTON, D.C. - U.S. Senator Maria Cantwell (D-WA), ranking member of the Senate Committee on Commerce, Science, and Transportation and senior member of the Senate Finance Committee, pressed witnesses at a Commerce subcommittee hearing on the unchecked expansion of prediction markets into sports gambling - demanding answers about how these platforms are undermining tribal sovereignty, threatening the economic vitality of Indian Country, and exposing vulnerable consumers, including minors, to predatory gambling practices. Sen. Cantwell drew a parallel to the lead-up to the 2008 financial crisis, warning that the failure to act to rein in prediction markets risks repeating the same disastrous results for millions of consumers.

"It [was] a conservative journalist who basically said, the lack of clarity is fraud," said Sen. Cantwell. "It was P.J. O'Rourke, and he said 'complexity is fraud.' His point was if it's so complex and you can't understand it, and complexity is the fraud. So that's where we are today."

In 2010, Congress amended the Commodity Exchange Act to authorize the Commodity Futures Trading Commission (CFTC) to prohibit prediction markets from offering contracts involving gaming or activities that violate state laws. The CFTC issued a rule in 2011 banning prediction markets from offering sports betting contracts.

"The CFTC prohibited sports betting contracts for more than 15 years under this rule, but all of a sudden, starting in 2025 prediction markets began offering sports gambling contracts," said Sen. Cantwell.

"So, my state wants to know why the Indian gaming [operations] - who basically have lived by the rules in their state and lived by the rules of a regulated entity - are now all of a sudden competing with somebody that is not a regulated entity that's basically offering the same product," stated Sen. Cantwell. "If the prediction markets are allowed to keep operating unchecked does this pose an existential threat to both tribal sovereignty and to Indian Country, and what can Congress do to better protect Indian gaming?"

Bill Miller, representing the American Gaming Association, responded that prediction markets absolutely pose a direct threat to the economic opportunities tribal gaming has created, including the more than 680,000 jobs in 2025.

"And so, yes, there's real harm here," said Mr. Miller. "Indian Country is scared. They believe that gaming has been a transformational economic opportunity for some of the people that have been treated worse than almost anybody else in this country's history. Gaming has created economic vitality and an opportunity for them, and that opportunity is very much at risk because of prediction markets."

Sen. Cantwell also raised alarming new data from the 2025 Washington State Healthy Youth Survey, showing that gambling is on the rise among Washington state's children.

The percentage of 12th graders reporting that they gambled in the past 12 months has increased 44.3% from 2021-2025. The percentage of 10th graders reporting gambling activity has risen 41.1% in the same time period.

Charts available in .pdf form HERE.

Sen. Cantwell questioned gambling addiction expert Dr. Harry Levant about the predatory tactics that prediction markets use to reach new customers, many as young as 18 years old, and keep them hooked.

The number of Washingtonians seeking help for problem gambling increased dramatically in 2025, coinciding with the rise in usage of prediction markets like Kalshi. Data from the National Problem Gambling Helpline dashboard shows contacts from Washington state increased 30.0% from 2024 to 2025.

Chart available in .pdf form HERE.

"People are being targeted relentlessly, and this discussion of prediction markets has done something that others would have predicted 'small p' impossible: that's Mr. Miller and I agreeing on an issue," responded Dr. Levant. "The prediction markets take this and [are] not only infringing upon sovereign rights [and] tribal gaming, but 18-year-olds, and they're being told it's investment. I've had six clients in my recovery group who have relapsed because they were told this is an investment. I'm not gambling, I'm making an investment, it's just so fundamentally wrong."

In Washington state, sports gambling is only allowed at certain tribal casinos. In March, Washington state sued Kalshi, asserting that the platform "attempts to skirt state law by branding its betting platform as a 'prediction market.'" The lawsuit argues Kalshi violates the Washington state Gambling Act and Consumer Protection Act, and would block Kalshi from operating in Washington, recover money lost by Washingtonians, and assess civil penalties.

As part of their ongoing bipartisan investigation into gambling corruption in professional sports, last year Ranking Member Cantwell and Chairman Ted Cruz (R-Texas) sent letters to the Commissioner of the National Basketball Association (NBA) and the Commissioner of Major League Baseball (MLB), following alarming indictments detailing schemes where players rigged their performance to win fraudulent bets.

"[F]ans must have confidence that games are being played fairly and honestly, so I agree with the Chairman on that," said Sen. Cantwell. "That's what makes competition great, and that is why Senator Cruz and I are conducting a bipartisan inquiry into how the leagues, the sports books, and the stakeholders are protecting the integrity of sports and teams."

Video of Sen. Cantwell's opening statement and Q&A is HERE. A complete transcript is HERE.

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