A coalition of gaming associations, tribal groups, and labor unions sent a letter to the Senate on June 16 demanding that the Digital Asset Market Clarity Act — the major crypto bill moving through Congress — be amended to explicitly bar prediction markets from offering sports and casino-style contracts. The signatories, including the American Gaming Association and the Indian Gaming Association, argue that platforms have effectively created a nationwide sports-betting system under a federal financial label, bypassing state and tribal laws.
Who signed and why
The letter was also backed by the Arkansas State Chamber of Commerce and other groups. They contend that sports-event contracts on prediction market platforms let users as young as 18 place bets in jurisdictions where sports gambling is illegal, and lack the responsible-gaming safeguards required of licensed operators. The coalition claims this has fueled the largest expansion of gambling in U.S. history over the past 18 months — all without a single vote or legislative approval.
The CFTC argument
The letter directly challenges the Commodity Futures Trading Commission's role. The groups argue the agency was created to oversee commodities and derivatives, not sports wagering, and simply doesn't have the infrastructure to police what is essentially a national betting network. They're asking senators to close what they see as a regulatory loophole before the Clarity Act can pass.
Pressure on an already tight timeline
The request adds another layer of friction to a bill that already faces procedural hurdles, an ongoing ethics fight, and a 60-vote threshold in the Senate. Lawmakers have just nine working days before the July 4 recess. They still need to resolve ethics disagreements, merge committee texts, and navigate floor procedures. Despite all that, optimism remains that the bill could pass this year.
Separately, Senators Adam Schiff and John Curtis introduced legislation in March that would go even further — barring sports and casino contracts on prediction market platforms entirely. That bill hasn't moved yet, but the coalition's letter gives it fresh relevance.
The clock is ticking. With only nine working days left before recess, the Senate will have to decide whether to insert the gambling ban into the Clarity Act — or leave it for a separate fight.
