Three US senators introduce bipartisan bill to define prediction markets as gambling

A new bipartisan bill introduced in the U.S. Senate aims to restrict prediction markets on sports and other activities, as lawmakers respond to growing concerns over the expansion of this vertical nationwide.

The legislation, known as the Prediction Markets are Gambling Act, is being led by Utah Republican Sen. John Curtis, alongside Democratic co-sponsors Sen. Adam Schiff of California and Sen. Catherine Cortez Masto of Nevada, the Utah Public Radio reported.

The bill would prohibit companies from offering prediction contracts related to sporting events, athletic competitions, and casino-style games, an effort supporters say is intended to close regulatory gaps in emerging digital betting platforms.

“This is an issue that’s just kind of coming into consciousness for people," Curtis said. "My other co-sponsors and I were not really trying to solve all of the problems with predictive markets. We’re narrowing in on a slice of it with this bill.”

Curtis added that he expects minimal economic disruption. ”Anybody who looks at gambling knows it’s a regressive tax, and so the impact of us not controlling this is far more detrimental," he stated.

The push comes amid increasing participation in prediction betting platforms, where users place money on the outcomes of future events. A survey by the Siena Research Institute and St. Bonaventure University found that 27% of Americans now hold active accounts on online prediction markets, a figure that has steadily risen in recent years.

Utah has maintained a strict gambling ban for more than a century, but prediction markets like Kalshi and Polymarket are often accessible to residents despite those restrictions.

Utah lawmakers also recently passed House Bill 243, clarifying that proposition bets fall under the state’s definition of gambling, seeking to close some of the remaining loopholes around gambling.

The US Senate is also considering a separate measure titled the Public Integrity in Financial Prediction Markets Act of 2026, which would bar government officials from using nonpublic information to trade prediction contracts. Curtis and Schiff are also co-sponsoring that legislation, alongside Sen. Elissa Slotkin of Michigan and Sen. Todd Young of Indiana.

Utah Attorney General Derek Brown has led parallel efforts against illegal gambling at the state level, joining 49 other attorneys general in August to urge the U.S. Department of Justice to crack down on offshore gambling operations. Brown has argued that such platforms expose users to fraud, addiction risks, and criminal exploitation.

While several related proposals remain under consideration, Curtis expressed confidence that the sports prediction bill could pass, adding that he would reintroduce it if necessary.

He added that additional gambling-related bills are being considered and expects continued federal action, pointing to growing concern in the Senate as gambling rates increase across the U.S.

“What you’re going to see from the Senate is not a short list of bills dealing with these markets," Curtis said. "It’s very clear to my colleagues and me that this is important, that we jump on quickly.”