A joint Friday letter from the American Gaming Association and Indian Gaming Association asked Congress to stop prediction markets from offering event contracts they say function as gambling products.
State and tribal gaming laws are the focus of the appeal, with the groups arguing those contracts could encroach on regulated betting frameworks already governed outside federal commodities rules.
The push comes as Congress weighs the Digital Asset Clarity Act, which would give the CFTC jurisdiction over digital assets including cryptocurrencies and stablecoins.
A 15-9 Senate Banking Committee vote on Thursday moved that bill to the Senate floor, giving the gaming groups a live legislative opening to press their concerns.
Is a new federal bill creating a loophole for nationwide online betting, bypassing state and tribal laws?
With insider trading already a reality, can these new betting platforms ever be truly fair for the average person?
Are prediction markets the next wave of financial tech or just a new guise for unregulated sports gambling?