New US bill proposes ban on sports prediction market contracts

The Prediction Markets Are Gambling Act proposes to prohibit any CFTC-registered entity from listing a contract that closely resembles a sports bet or a casino-style game.

US.- A new bipartisan bill introduced in the US Congress would ban any CFTC-registered entity from listing contracts that closely resemble a sports bet or casino-style game. The Prediction Markets Are Gambling Act was introduced by senators Adam Schiff (D-California) and John Curtis (R-Utah).

The bill is described by its sponsors as “the first bipartisan bill seeking to regulate prediction markets”. It would amend the Commodity Exchange Act to cover amateur, collegiate, and professional sports. The text clarifies that it would not preempt any state law or rule that regulates or prohibits such games.

Schiff and Curtis argue that for 15 years the CFTC enforced regulations prohibiting entities from listing contracts that involve gambling but that the agency has “abruptly reversed course,” intervening in litigation and relaxing its enforcement. The CFTC was also involved in a memorandum of understanding with Major League Baseball, which named Polymarket its official prediction market exchange on March 19.

Senator Schiff said in a statement: “Sports prediction contracts are sports bets — just with a different name. And yet, these contracts have been offered in all fifty states in clear violation of state and federal law. Rather than enforce the law, the CFTC is greenlighting these markets and even promoting their growth. It’s time for Congress to step in and eliminate this backdoor, which violates state consumer protections, intrudes upon tribal sovereignty, and offers no public revenue. I’m proud to partner with Senator Curtis to put a stop to these illegal markets.”

Curtis added: “Too many young people in Utah are getting exposed to addictive sports betting and casino-style gaming contracts that belong under state control, not under federal regulators.” “Our bipartisan legislation clarifies regulatory jurisdiction, ensuring that states can maintain their authority over sports betting and casino gaming. The Prediction Markets Are Gambling Act is about respecting states’ authority, protecting families, and keeping speculative financial products out of spaces where they don’t belong.”

The American Gaming Association (AGA) has described the introduction of the Prediction Markets Are Gambling Act as “a critical step in reaffirming Congressional intent that all gaming, including sports betting, is not a federal commodity, and is governed by state and tribal law.”

The AGA added that it “strongly supports this bipartisan effort, led by Senators Schiff and Curtis, to uphold state and tribal sovereignty and protect consumers by ensuring sports and gambling-related contracts are prohibited.”

A bill introduced in the Vermont House of Representatives proposes to ban certain event contracts. Sponsored by Rep. Thomas Stevens, House Bill 913 would cover prediction markets involving sports, contests, natural persons, politics and campaigns, disasters, war, all-hazards or death.

In New Jersey, Senate President Pro Tempore Shirley K. Turner’s S-3692 proposes a ban on unregulated prediction markets in the state, while Representative Scot Matayoshi has introduced House Bill 2198 in Hawaii.

https://focusgn.com/new-us-bill-proposes-to-ban-sports-prediction-market-contracts