Lawmakers Push 12-Plus Bills to Regulate Prediction Markets as Age-21 Limit Gains Support
Updated
Updated · CNN · May 28
Lawmakers Push 12-Plus Bills to Regulate Prediction Markets as Age-21 Limit Gains Support
7 articles · Updated · CNN · May 28
More than a dozen bills have been introduced this year to curb prediction markets, including a proposal to raise the minimum age to 21 as lawmakers warn current rules expose teenagers and college-age users.
The push stems from a legal loophole: prediction sites are regulated by the CFTC as financial exchanges rather than gambling platforms, letting 18-year-olds trade sports and other event contracts in ways most state sportsbooks bar.
Senators aired bipartisan concern at a Wednesday hearing, with Marsha Blackburn criticizing weak federal youth protections and Maria Cantwell saying platforms are using federal cover to target users as young as 18.
States, addiction experts and gaming regulators say the model is fueling harm among young adults, while a 41-state coalition and Washington, D.C., are fighting in court over whether the platforms evade state gambling laws.
Kalshi has added voluntary safeguards and backed a higher age threshold, but the Trump-aligned CFTC is drafting new rules seen as industry-friendly even as Minnesota became the first state to ban prediction markets.
As courts debate, are young adults trading on financial markets or in digital casinos?
With a trillion-dollar market emerging, can industry self-regulation truly protect young users from addiction?
$25 Billion at Stake: The 2026 U.S. Legislative Blitz Against Prediction Markets
Overview
In 2026, the United States saw a major legislative crackdown on prediction markets, with both federal and state governments moving to regulate, restrict, or ban these platforms. The Commodity Futures Trading Commission (CFTC), established in 1974, holds exclusive authority to regulate futures and options, and major platforms like Kalshi and Polymarket registered under its oversight. However, states such as Minnesota introduced sweeping bans, prompting the CFTC to file lawsuits against these state-level restrictions. This clash between federal regulation and aggressive state actions highlights a growing conflict over who controls the future of prediction markets in America.