Senators, Tribal Regulators Push Prediction-Market Curbs in Clarity Act

Prediction markets allow users to trade event contracts tied to sports and other outcomes. Polymarket and Kalshi favor nationwide oversight by the Commodity Futures Trading Commission, while states and Tribal authorities argue sports contracts amount to gambling governed by local laws, Tribal-state compacts and the Indian Gaming Regulatory Act. The dispute carries substantial economic stakes: Tribal gaming generates more than $40 billion in annual revenue, supporting healthcare, housing, education and other government services.

At an Aug. 4 Senate Committee on Indian Affairs roundtable, Indian Gaming Association Vice Chairman Tehassi Hill urged lawmakers to amend the Clarity Act to bar sports and casino gambling through prediction markets and affirm that CFTC rules do not preempt state or Tribal law. Senator Tina Smith proposed attaching similar language to either the Clarity Act or the Farm Bill. Senate Agriculture Committee Chairman John Boozman opposed combining the issues, however, as lawmakers faced an Aug. 7 recess deadline to advance the crypto measure.