Gaming groups urge Senate to bar crypto sports prediction markets

This week, U.S. casino operators, gaming trade associations and state gaming regulators filed formal comments with Senate offices asking that sports prediction markets be excluded from a pending cryptocurrency bill. The filings argued such markets could circumvent state gambling laws and expose consumers to new risks.

Crypto-based prediction markets allow users to place wagers or trade contracts tied to the outcomes of sporting events using digital tokens. The industry filings said those products could function like sportsbooks if covered by federal crypto rules that do not account for state gambling regimes.

The groups listed specific concerns: underage and problem gambling, enforcement challenges against decentralized or offshore platforms, risks to sporting event integrity from rapid anonymous wagers, and potential money‑laundering if platforms do not meet anti‑money‑laundering controls applied to regulated bookmakers.

In their submissions, the gaming groups urged lawmakers to draft clear definitions that separate trading products such as futures and spot tokens from mechanisms that operate as wagers on real‑world events. They proposed language to prevent crypto platforms from offering event‑based contracts that price or settle on sports results unless those products comply with state licensing and federal gambling statutes.

Senators negotiating the bill are weighing how to provide clarity for digital‑asset trading, custody and taxation while setting oversight for different crypto activities. Some lawmakers and industry participants have pushed for federal rules to support legitimate businesses and designate regulator responsibilities.

Supporters of crypto prediction markets contend the products can provide price discovery and hedging tools and note some platforms use identity checks and compliance systems. The gaming groups maintained that voluntary safeguards are insufficient and recommended statutory exclusions or licensing requirements.

After the U.S. Supreme Court’s 2018 decision overturning a federal ban on most sports betting, states established a range of licensing and consumer‑protection measures. The filings point to that patchwork of state rules and to the cross‑border, decentralized nature of some crypto services as complicating factors for enforcement.