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State of Play’s TL;DR
- Congress has stalled on new federal rules for sports betting and prediction markets.
- Lawmakers do not expect major legislation to pass before the midterm elections.
Two closely watched proposals in the US Congress do not have a clear path forward: the SAFE Bet Act, which would create a federal baseline for consumer protections in online sports betting, and a separate bill from Sen. Adam Schiff (D-California) to ban prediction markets from offering sports event contracts.
For operators, including FanDuel, DraftKings, Kalshi, and Polymarket, the delay means the current regulatory split is likely to remain in place for now.
According to The Hill, the SAFE Bet Act has gained little traction in the Senate despite bipartisan concern about gambling addiction, corruption, and weak oversight. The bill is aimed at curbing what supporters describe as predatory practices in online sports betting, with added safeguards for younger users.
Prediction markets have become part of the same debate as they expand into contracts tied to politics, the economy, sports, and other events. Those platforms are regulated by the Commodity Futures Trading Commission, not by state gaming regulators, and that concerns some lawmakers, like Sen. Tim Kaine (D-Virginia).
“These prediction markets have almost gotten to be like insider trading, which makes me nervous.”
Why the bills are stuck
Lawmakers and strategists told The Hill that gambling legislation is not a top congressional priority heading into the election cycle. A national Republican strategist said: “The reality is we’re four months away from an election and this isn’t a top priority.”
Sen. Richard Blumenthal also pointed to industry influence and the relative newness of the issues.
“For one, these issues are relatively recent. But second, these gambling and prediction market companies are throwing their weight around here.”
The article also highlighted scrutiny around sportsbook and prediction market integrity controls. Critics say major sportsbooks such as FanDuel and DraftKings are not doing enough to limit corruption and game-rigging risks.
On the prediction market side, companies including Kalshi and Polymarket have faced questions about whether they have sufficient integrity-monitoring capabilities and whether government employees should be allowed to trade on event outcomes.
Based on reporting by Dominick Mastrangelo for The Hill.
