Sens. Adam Schiff (D-CA) and John Curtis (R-UT) introduced a bill on Monday that could prevent prediction market platforms Kalshi and Polymarket from allowing users to wager money on sports events or play casino-style games.
Kalshi and Polymarket are regulated under the Commodity Futures Trading Commission (CFTC), which is why Schiff and Curtis are able to address them under federal jurisdiction. The bill would not apply to FanDuel and DraftKings, which are subject to state-by-state gambling laws.
According to Schiff, sports prediction contracts are essentially sports bets, and yet they are currently offered in all 50 states in clear violation of state and federal law. Total sports wagers grew from $4.9 billion in 2017 to $121.1 billion in 2023.
The Funding and Market Context
Kalshi’s Super Bowl trading volume reached over $1 billion this year — a 2700% increase year-over-year. This growth has raised concerns about gambling addiction, with researchers finding that online searches for help with gambling addiction increased by 61% after online sportsbooks became available.
Curtis expressed concerns that 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.
Company Response
Kalshi spokesperson Elisabeth Diana told TechCrunch that this bill would stifle competition and push users to offshore prediction markets. “It’s clear this bill is motivated by casino interests that are threatened by competition,” Diana said.
Polymarket did not respond to a request for comment. Kalshi has faced other legal challenges recently, including a temporary ban in Nevada and criminal charges in Arizona.
