Federal News
Senators Introduce Legislation to Ban CFTC Sports Prediction Contracts
March 24, 2026
Senators John Curtis and Adam Schiff introduced bipartisan legislation in 2026 called the Prediction Markets Are Gambling Act, aiming to prohibit Commodity Futures Trading Commission (CFTC)-registered entities from offering sports prediction contracts that resemble sports betting or casino-style games. This legislative effort responds to ongoing disputes, including a 39-state coalition led by Idaho Attorney General Raúl Labrador, challenging the CFTC's claim of exclusive federal authority over sports betting regulation. The coalition argues that Congress never authorized the CFTC to regulate gambling, emphasizing states' rights to govern or ban sports betting within their jurisdictions. This development signals potential regulatory shifts affecting online sports betting platforms and financial products linked to sports events.
- Procurement professionals should note the potential impact on contracts and services related to sports betting platforms, especially those registered with the CFTC or offering sports prediction contracts.
- Companies operating in or contracting with states involved in the coalition, such as Idaho, may face evolving regulatory environments that could affect compliance and market access.
- The legislation underscores the importance of monitoring federal and state regulatory boundaries, which may influence procurement requirements and vendor eligibility in gambling-related financial products.
- Industry stakeholders should evaluate how this legislation might affect the development and offering of sports-related financial instruments and adjust business strategies accordingly.
States like Idaho that choose to ban sports betting would be prevented from enforcing those bans under the CFTC’s theory. An unelected federal agency claims it discovered hidden authority in fifteen-year-old financial reform laws to override state gambling laws nationwide. Congress never granted that power, and Idaho will continue defending our right to regulate gambling as we see fit.
— Attorney General Raúl Labrador
Sports prediction contracts are sports bets 6 just with a different name. And yet, these contracts have been offered in all fifty states in clear violation of state and federal law.
— Senator Adam Schiff
Our bipartisan legislation clarifies regulatory jurisdiction, ensuring that states can maintain their authority over sports betting and casino gaming.
— Senator John Curtis
Agencies
Commodity Futures Trading Commission, Idaho Office of Attorney General, Nevada State Government, Ohio State Government, New Jersey State Government
Vendors
Kalshi, Crypto.com
Contracts
Locations
Sources
- Labrador Letter: Defending Idaho's Right to Regulate Gambling - Idaho Office of Attorney General · ID · Mar 23
- AG Labrador Defends Idaho’s Authority to Regulate Sports Betting - Idaho Office of Attorney General · ID · Mar 23
- NEWS: Sens. Schiff, Curtis Introduce Bipartisan Legislation to Ban Sports Prediction Market Contracts · Schiff Senate · Mar 24
- Curtis, Schiff Introduce Bipartisan Legislation to Ban Sports Prediction Market Contracts - Senator John Curtis · Curtis Senate · Mar 24