The American Gaming Association (AGA) and the Indian Gaming Association (IGA) have urged Congress to address the rise of unregulated prediction markets offering sports contracts.
These markets, which have grown significantly since last January, are seen by industry leaders as operating outside the law.
In a joint letter, the associations argued that the Commodity Futures Trading Commission (CFTC) has failed to act, undermining state and tribal authority. “Congressional consideration of cryptocurrency market structure legislation provides an important, bipartisan opportunity to prevent sports betting and casino gambling under the guise of ‘event contracts,’” the groups stated.
Protecting a $329 Billion Industry
The AGA and IGA highlighted the economic importance of the regulated gaming sector. “Our associations represent the legal regulated gaming industry in the United States that generates $329 billion in annual economic impact, produces $53 billion in tax revenue, and supports 1.8 million jobs,” they noted.
The rapid expansion of prediction markets, including platforms like Kalshi and new entrants like FanDuel and DraftKings, has raised concerns about consumer protection and market integrity. The groups warned that unregulated contracts could facilitate money laundering and insider trading.
“Flagrant disregard of state laws, tribal sovereignty, the Commodity Exchange Act, and CFTC regulations,” the letter asserted, describing the current state of these markets.
The associations are calling for clear legislative language to prohibit gambling on CFTC-registered platforms, emphasizing the need to protect the integrity of the regulated gaming industry.
