Mulvaney Pushes Congress to Ban Sports Contracts on Prediction Markets as CFTC Faces 18-21 Age Debate
Updated
Updated · POLITICO · May 20
Mulvaney Pushes Congress to Ban Sports Contracts on Prediction Markets as CFTC Faces 18-21 Age Debate
10 articles · Updated · POLITICO · May 20
Mick Mulvaney said he has begun briefing congressional staff and contacting key lawmakers to press for an outright ban on sports contracts offered by prediction markets.
That push follows last year's expansion of prediction markets into sports, a shift critics say makes betting look like investing and has intensified calls for Congress to draw a legal line.
The CFTC still treats these products as derivatives rather than gambling because there is no house setting odds, but it is fighting states over jurisdiction and now acknowledges prediction markets raise distinct regulatory issues.
Possible responses range from rewriting the post-2008 ban on contracts tied to "gaming" to adding gambling-style safeguards such as age limits; Kalshi allows users 18 and older, while most sports books require 21.
Mulvaney said the debate is still early but believes lawmakers are receptive, reflecting broader concern from executives and legislators that prediction markets are erasing the boundary between speculation and wagering.
Will the Supreme Court decide these markets are innovative finance or just unregulated sports betting?
How can we stop prediction markets from creating a new generation of financial addicts?
When soldiers bet on military secrets, how can we prevent prediction markets from threatening national security?
The Future of U.S. Prediction Markets: Congressional Action, $400 Million Scandal, and the Battle Over Regulation (May 2026)
Overview
In May 2026, the prediction market industry is under intense scrutiny from U.S. lawmakers and regulators due to growing concerns about market integrity, investor protection, and national security. As prediction markets expand and change how Americans assess risk, the distinction between financial innovation and unregulated gambling is becoming unclear. This has led to a swift response, with Congress introducing several key bills, such as the Prediction Market Act of 2026, which aims to set clear rules for responsible growth and protect everyday investors. The industry now faces a critical moment as it navigates new regulations and enforcement actions.