The American Gaming Association is leading a coalition of tribal gaming groups and hospitality unions that wants the Senate to block prediction markets from taking sports wagers. Their weapon of choice: the pending crypto market-structure legislation working its way through Congress. The coalition is urging lawmakers to insert specific language into the bill that would bar platforms like Kalshi and Polymarket from offering contracts tied to sporting events.
The coalition's argument
Traditional sports betting is a heavily regulated industry, with state-by-state licensing, consumer protections, and tax frameworks. The coalition argues that prediction markets have been operating in a regulatory gray area, taking bets on everything from election outcomes to football games without the same oversight. They see the crypto bill as a natural place to close that loophole. Tribal casinos and hospitality unions worry these unlicensed platforms could pull revenue away from legal sportsbooks.
The legislative vehicle
It's not clear exactly which version of the market-structure bill the coalition is targeting — there are multiple drafts in play. But the timing matters. The Senate Banking Committee is expected to mark up its crypto bill this month or next, and the coalition wants the sports-wager ban added before that happens. That puts pressure on key senators who are trying to balance competing industry interests while moving the broader legislation forward.
Who's in the crosshairs
The coalition specifically named Kalshi and Polymarket as the platforms they want shut out of sports betting. Kalshi has been particularly aggressive in listing sports-related contracts, using the same event-contract model it pioneered for financial and political markets. Polymarket, meanwhile, has built a large user base on the back of sports prediction markets, especially around major events like the Super Bowl and March Madness. Both have argued they operate under a different legal framework than traditional sportsbooks — a claim the coalition rejects.
What happens next
The Senate hasn't publicly committed to including any such language yet. But the coalition includes the American Gaming Association, the National Indian Gaming Association, and the Hotel & Lodging Association — groups with serious lobbying muscle. Expect a heavy push in the coming weeks as the bill moves closer to a vote. For now, Kalshi and Polymarket are watching closely, and their lawyers are probably already drafting memos.
