U.S. Senators Adam Schiff (D-Calif.) and John Curtis (R-Utah) introduced a bipartisan bill to prohibit CFTC-regulated entities from offering sports prediction contracts. The legislation specifically targets platforms like Kalshi and Polymarket. It also bans listing casino-style games such as blackjack and video poker.
Sponsors argue the CFTC creates a federal backdoor that undermines state gambling laws and consumer protections. The bill claims these platforms bypass tribal sovereignty without providing public tax revenue. This move directly challenges the prediction market sector competing with established sportsbooks.
Shares of DraftKings (DKNG) and Flutter Entertainment (FLUT) rose significantly following the announcement.