Prediction markets under fire as gaming groups call Senate to block sports prediction markets in crypto bill

In a letter dated 16 June 2026, several gaming organizations have urged the U.S Senate to prohibit sports and casino-style event contracts.

This, amidst the ongoing debate and delays on the cryptocurrency market structure tied to the CLARITY Act. 

The groups expressed concerns that over the last 18 months, without voters or legislative approval, prediction markets have now become the largest gambling expansion in American history.

Notably, this has happened despite their differences over broader gambling regulations.

How did prediction markets turn into a gambling space?

Under the pretence of federally regulated financial products, platforms that offer so-called “sports event contracts” have essentially established a nationwide sports betting market. 

Additionally, the letter claims, the platforms have also circumvented state and tribal laws, eroded consumer protections, and threatened local regulatory frameworks. 

The signatories also contend that these platforms allow young bettors aged 18 to place bets in countries where sports betting is illegal. 

Why is the CFTC being attacked?

Additionally, it implied that the Commodity Futures Trading Commission (CFTC) “lacks both the expertise and the infrastructure to police nationwide sports betting.” Simply put, it claimed that the commission was not established to regulate gambling or sports wagering.

Hence, the letter has urged lawmakers to make it clear that sports betting is outside the CFTC’s purview and shouldn’t be made available through prediction market platforms. 

For now, the White House remains optimistic that the crypto market structure bill will be passed by its original deadline of 4 July 2026. 

As previously reported by AMBCrypto, the White House’s Chief Crypto Advisor Patrick Witt put it best when he said,

Every day, we’re doing trifecta. Mornings or afternoons on Ag, ethics, and BRCA.

Final Summary

• Prediction markets are described as the largest gambling expansion in American history over the last 18 months.
• According to gaming groups, these platforms have circumvented state and federal laws after weakening consumer protections.