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The U.S. gambling industry has spoken out against sports prediction markets — ForkLog
American gambling associations have called on the US Senate to ban prediction markets related to sports and gambling as part of a new crypto regulation bill
According to organizations AGA, IGA, and AGEM, such platforms illegally expand the gambling market without voter or state authority approval.
The authors of the appeal stated that these platforms disguise bets as financial products. This allows them to bypass local laws, taxes, and consumer protection regulations. The gambling industry also believes that the US Commodity Futures Trading Commission (CFTC) lacks the resources to oversee betting.
> > "Congress must confirm: sports betting is not within the jurisdiction of the CFTC and cannot be offered through prediction markets," — the letter emphasizes. > >
The demand was made amid discussions of the CLARITY Act. The bill was previously approved by the Senate Banking Committee.
The largest players in the prediction markets segment remain Kalshi and Polymarket. In May, trading volume on Kalshi reached $16.8 billion, and on Polymarket — $7 billion.
Recall that Indonesia’s Ministry of Communications and Digital Technologies has blocked access to the Polymarket platform. Officials equated the service to an online casino.