Bipartisan Bill Would Classify Crypto Prediction Bets as Gambling

What This Means for Crypto Casino Players

Prediction markets have become a popular outlet for crypto users who want to wager on sports results, political outcomes, and economic data without going through a traditional sportsbook. Platforms like Kalshi and Polymarket accept crypto alongside fiat, letting users trade outcome contracts on everything from NHL playoff series to US election races. Under the proposed bill, those sports and casino-style contracts would need to be licensed as gambling products at the state level, rather than approved only by the CFTC as commodity derivatives.

The practical impact falls mainly on players using CFTC-registered platforms to bet on sporting outcomes. If the bill passes, those platforms would either need state gaming licenses — which most states do not currently offer for commodity exchange operators — or discontinue those product lines. Licensed crypto sportsbooks operating under international licenses are not targeted by this legislation. Canadian players can compare currently active crypto betting options on our best crypto sports betting guide for Canadian players; all listed operators accept popular cryptocurrencies.

The Prediction Markets Are Gambling Act Explained

The bill bars any CFTC-registered entity from listing contracts tied to sporting or athletic competition — amateur, collegiate, or professional — or casino-style games including slots, poker, blackjack, roulette, craps, bingo, and lotteries. States retain the right to opt out and regulate these markets independently, preserving state gambling authority rather than establishing a new federal licensing regime.

The timing follows months of escalating state-level conflict. Nevada issued a 14-day restraining order against Kalshi on 22 March after the platform argued that CFTC approval grants national authority to operate sports-outcome contracts. State courts have rejected that argument, and Massachusetts and Arizona have pursued similar proceedings. Schiff described the contracts as “sports bets with a different name.” Curtis framed the legislation as restoring state jurisdiction over sports betting and casino gaming before further states resort to unilateral enforcement actions.

Market scale has accelerated the political response. Polymarket's five-minute Bitcoin price contracts were generating $60 million in daily trading volume by early March, and NHL, NBA, and CFL outcome contracts have also drawn significant volume from cryptocurrency-native bettors. The CFTC opened a formal review of event contract rules in early 2026, but with no deadline attached, both sponsors concluded that congressional action was the faster path to resolution.

What to Watch

The bill's next step is committee assignment — Senate Judiciary or Commerce are the most likely destinations. Whether it advances will depend in part on whether the CFTC accelerates its own rulemaking in response, and on whether additional states file enforcement actions that raise pressure for a federal solution. Players with active accounts on prediction platforms should monitor their platform's current legal standing, particularly if they are using crypto to wager on sporting outcomes. Canadian players looking for licensed international crypto casino options can find current platforms on our best crypto casino page for Canadian players.