Several gaming associations, tribes, and labor unions have asked the Senate to add language to the pending crypto legislation that bars prediction markets from offering sports and casino-style contracts.
The June 16 letter targets the Digital Asset Market Clarity Act, the crypto market structure bill. Signatories include the American Gaming Association (AGA), the Indian Gaming Association (IGA), the Arkansas State Chamber of Commerce, and more.
Casinos, Tribes, and Unions Push to Add Sports Betting Ban to Clarity Act
The groups argue that sports-event contracts allow platforms to run nationwide sports betting under a federal financial label. That structure sidesteps state and tribal law and thins consumer protections. It also drains a locally controlled system that funds jobs, taxes, and community programs.
“While our organizations may differ on other issues, including gambling policy, we are united in our concern that prediction markets have fueled the largest expansion of gambling in U.S. history over the past 18 months—without voter approval or legislative authorization,” the letter viewed by Semafor reads.
The signatories warn that platforms let users as young as 18 place bets in unauthorized jurisdictions. They also say the platforms lack responsible gaming safeguards. Marketing gambling as investments misleads younger users, the groups argue.
The letter also challenges the Commodity Futures Trading Commission’s (CFTC) role. They say the agency was formed to oversee commodities and derivatives, not sports wagering, and lacks the infrastructure to police it. According to the groups,
“Sports betting falls outside the CFTC’s remit and cannot be offered through prediction market platforms.”
Follow us on X to get the latest news as it happens
What It Means for the Clarity Act
The request piles onto a bill already under strain. Lawmakers must still settle the ethics fight and merge the committee texts. They also face procedural steps and a 60-vote threshold.
Meanwhile, this is not the first move against sports event contracts. Senators Adam Schiff and John Curtis introduced separate legislation in March. That bill would bar sports and casino contracts on prediction market platforms.
The coming weeks will show whether lawmakers fold the gaming language into the bill or leave it.
Subscribe to our YouTube channel to watch leaders and journalists provide expert insights
The post Gaming Industry Urges Senate to Curb Sports Betting in Clarity Act appeared first on BeInCrypto.
