Are sports prediction markets gambling — and should Congress treat them that way?
Platforms like Kalshi offer "event contracts" on sports outcomes under federal commodities law, bypassing state and tribal gambling regulation — including Nevada's. The Prediction Markets Are Gambling Act (S. 4160), co-sponsored by Nevada's Catherine Cortez Masto, would bar federally regulated exchanges from listing contracts that function as sports bets. This summer, 44 state attorneys general told the CFTC it lacks authority over sports contracts and New York sued Kalshi as an illegal gambling operation. Supporters say the loophole guts state consumer protections; opponents say these are legitimate, federally regulated markets with real informational value. Where do you stand?
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The case for
The gaming industry and state regulators argue sports event contracts are nationwide sports betting in disguise — no age-21 checks, no problem-gambling safeguards, no state or tribal oversight — and that Congress should close a loophole that lets one federal agency preempt a century of state gambling law.
Source: American Gaming Association →The case against
Defenders argue prediction markets are legitimate financial instruments regulated by the CFTC, with genuine price-discovery and informational value, and note federal courts have repeatedly blocked state attempts to ban them — evidence the federal framework, not fifty state regimes, is the right home.
Source: Reason →My Democracy doesn’t take a side — you choose your position below, and your message carries it. Sources represent one organization on each side; they don’t reflect My Democracy’s position.
This campaign is about this bill
S. 4160: Prediction Markets Are Gambling ActWhat it does
This bill would classify prediction markets as a form of gambling under US law.
Latest action: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry. (Mar 23, 2026)
10 more to reach 10
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What’s your position?
Both sides are laid out above. Your message will carry your position — My Democracy doesn’t take a side.