The American Gaming Association and the Indian Gaming Association have jointly asked the United States Congress to intervene in the growing use of sports event contracts offered by prediction market platforms, arguing that these products closely mirror regulated sports betting while operating outside established legal safeguards. In a letter sent to members of both chambers of Congress, the organizations called for legislative action to address what they describe as an unchecked expansion enabled by current federal regulatory practices.
The letter, signed by AGA President and CEO Bill Miller and IGA Chairman David Z. Bean, focuses on the Commodity Futures Trading Commission’s allowance for registered prediction markets to self-certify event contracts. Under this system, platforms can introduce contracts without prior approval, including those tied to sports outcomes. According to the associations, this approach has allowed offerings that resemble single-game wagers, multi-leg parlays, and even bets connected to collegiate athlete transfers.
“These contracts are being offered in flagrant disregard of state laws, tribal sovereignty, the Commodity Exchange Act and CFTC regulations,” the letter states. “They mislead consumers into believing that a sports bet is an investment, fail to protect the young and the vulnerable, open the door to money laundering, match fixing and insider trading. They rob state budgets and tribal finances while simultaneously forcing states and tribes to expend massive legal resources to defend their sovereignty.”
Concerns Over State Authority and Tribal Rights
The associations argue that prediction market contracts undermine a regulatory framework built over decades following the Supreme Court’s 2018 decision to overturn the Professional and Amateur Sports Protection Act. Since that ruling, 39 states and the District of Columbia have legalized sports betting, often through arrangements that include tribal governments. These systems typically require bettors to be at least 21 years old and impose licensing, anti-money laundering standards, and responsible gaming requirements.
By contrast, prediction market platforms allow participation starting at age 18 and offer contracts nationwide, which the AGA and IGA say bypasses both state authority and tribal exclusivity under the Indian Gaming Regulatory Act. The groups also point to the federal Wire Act, asserting that cross-border availability of sports-related contracts conflicts with existing law.
Together, the associations represent what they describe as the regulated gaming industry, which they say supports 1.8 million jobs, generates $329 billion in annual economic impact, and contributes $53 billion in tax revenue. They emphasize that licensed operators work under the supervision of more than 8,400 state and tribal regulators.
Push to Use Cryptocurrency Legislation
Rather than calling for entirely new legislation, the AGA and IGA have urged lawmakers to incorporate restrictions into a cryptocurrency market structure bill recently introduced in the Senate. They view the measure as a vehicle to clarify that event contracts resembling sports betting or casino gaming should not be permitted on CFTC-registered platforms.
“They have grown exponentially in trading volume and have expanded beyond the outcome of single games to include complex parlays and even potential wagers on the collegiate transfer portal,” the associations wrote in a separate passage. “This growth has occurred by exploiting regulatory inaction by the Commodity Futures Trading Commission (CFTC), which undermines state law and tribal sovereignty and flies in the face of existing federal laws and regulations intended to protect consumers and the integrity of our nation’s financial markets.”
The issue has already drawn attention on Capitol Hill. In October 2025, six senators sent a letter to the CFTC questioning why sports event contracts were being allowed and raising concerns about the self-certification process.
Political Contracts Add to Unease
While sports contracts remain the primary focus, the associations also cited prediction markets tied to political events and international conflicts. They highlighted contracts related to the capture of Venezuelan President Nicolás Maduro and overseas wars, arguing such offerings would never receive approval under state or tribal gaming rules. Although some of these contracts were not available on U.S.-facing, CFTC-certified exchanges, the groups said their existence illustrates broader risks tied to event-based trading.
Attention has also turned to leadership changes at the CFTC. Michael Selig, a crypto specialist and former chief counsel for the SEC’s Crypto Task Force, recently assumed the chairmanship after being nominated by President Donald Trump. During his confirmation hearing, Selig indicated he would “defer to the courts” on sports event contracts and look to Congress for direction on statutory changes.
The associations seized on those remarks in their appeal, stating, “Therefore, it is critical that Congress act swiftly to include legislative language in the cryptocurrency market structure legislation that reinforces existing law and prohibits gaming through CFTC-registered platforms.”
They concluded by offering to work with lawmakers as debate over digital asset regulation continues, framing the issue as one with implications for consumer protection, public trust, and the balance of authority between federal regulators, states, and tribal governments.
