U.S. senators plan to introduce bipartisan legislation Monday that would prohibit sports betting on prediction market platforms, according to reporting from the Wall Street Journal. The bill, backed by senators including Adam Schiff and Curtis, targets CFTC-regulated platforms including Kalshi and Polymarket, which have grown in popularity as alternatives to traditional sportsbooks.
The proposed restriction would limit prediction market operators' ability to offer contracts tied to sports events, effectively narrowing the scope of permitted trading on these platforms. The move reflects ongoing congressional concern about the rapid expansion of decentralized prediction markets, which have attracted retail participation and drawn scrutiny from regulators over market manipulation and consumer protection issues.
The bipartisan approach signals potential momentum for restrictions on prediction market activity, though the bill's path through Congress remains uncertain. The action represents one of the first coordinated legislative efforts to directly constrain prediction market operations, following months of debate over whether these platforms constitute unregulated gambling or legitimate derivatives exchanges.