Law banning sports prediction markets enacted in 2026?
$17.3K Vol.Closes Jun 30, 2026
Law banning sports prediction markets enacted in 2026?$17.3K Vol.21%
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Multiple bipartisan bills in the U.S. Congress aim to ban CFTC-regulated prediction markets from offering sports betting contracts by reclassifying them as state-regulated gambling.
The primary legislative drivers are Senators Adam Schiff and John Curtis, alongside a broader coalition of Democratic lawmakers, facing opposition from prediction market operators like Kalshi and Polymarket.
Prediction markets currently operate under federal CFTC oversight in all 50 states, but 15 states have introduced legislation in 2026 to ban or restrict them, with Minnesota becoming the first to sign a ban into law in May.
multistate.usncsl.orgcbssports.comEnactment would force federally regulated platforms to remove sports contracts nationwide, shifting sports betting regulation exclusively to states and potentially eliminating a major revenue stream for prediction market exchanges.
Note: Minnesota's state ban signed in May 2026 takes effect August 1, but this is a state law and does not satisfy the market's requirement for a federal bill banning CFTC-regulated sports prediction contracts.
Senators Adam Schiff (D-CA) and John Curtis (R-Utah) unveiled the bipartisan "Prediction Markets Are Gambling Act," which would prohibit CFTC-regulated entities from listing contracts resembling sports bets or casino-style games.
New York Timessportsbusinessjournal.comA coalition of Democratic lawmakers introduced a bill prohibiting prediction market wagers on elections, government actions, warfare, and sports, while Senators Adam Schiff and John Curtis launched a separate initiative specifically to outlaw sports prediction contracts.
CNBCThe "STOP Corrupt Bets Act" was introduced in Congress to ban prediction market wagers on sports, elections, war, and government actions, marking the most significant federal attempt to restrict the sector so far.
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The "STOP Corrupt Bets Act" introduced in June 2026 explicitly targets sports, election, and war wagers on platforms like Kalshi and Polymarket, arguing they function as unregulated gambling with integrity risks.
bettorsinsider.comSenator Schiff and Senator Curtis's "Prediction Markets Are Gambling Act" has gained bipartisan support and specifically seeks to amend federal law to bar CFTC entities from offering sports and casino-style event contracts.
New York Timesespn.comState-level pressure is intensifying as regulators in 11 states have issued cease-and-desist orders, claiming prediction markets cost states over $600 million in lost sports betting tax revenue, creating momentum for a federal solution.
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Trader consensus on prediction markets assigns a low probability to federal enactment before year-end, citing limited remaining legislative session time and competing priorities.
polymarket.comThe current crowd-sourced probability for the law being enacted in 2026 is only 21%, reflecting market skepticism about the bills' ability to pass both chambers and be signed by the President.
polymarket.comThe CFTC has recently issued an Advanced Notice of Proposed Rulemaking to seek public comment on prediction market regulations, suggesting a regulatory approach rather than an immediate legislative ban is being pursued.
multistate.usAI-generated briefing. AI can make mistakes. This is not financial advice.