The American Gaming Association said prediction markets offering sports event contracts pose a growing challenge to state- and tribal-regulated operators. Its Gaming Industry Outlook, produced with Oxford Economics, recorded a 1.5% rise in real activity and executive confidence of 21.4% net positive.
The AGA’s stance signals industry opposition to sports event contracts competing with regulated operators.
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The American Gaming Association urged Congress to classify sports event contracts as gambling and bar CFTC-registered platforms from listing them through self-certification. Testifying before a Senate Agriculture subcommittee, AGA senior vice-president Christopher Cylke said platforms including Kalshi and Polymarket operate outside state and tribal gambling systems. The association estimated that states and tribes had lost more than $1.2 billion in gaming tax revenue since sports contracts began.
Maryland’s Lottery and Gaming Control Agency reportedly sent the CFTC a letter urging a ban on sports event contracts, using wording from a template the American Gaming Association allegedly supplied. The agency said it reached its position independently; the Coalition for Prediction Markets’ chief executive questioned its impartiality.
The American Gaming Association and other trade groups are urging US lawmakers to prohibit sports-related trading on prediction markets. The groups argue that the Commodity Futures Trading Commission has exceeded its authority, while bipartisan legislation introduced in March would bar the agency from permitting sports and casino-style event contracts.
The American Gaming Association estimated that prediction markets have cost US states and tribal governments more than $1 billion in tax revenue, according to its latest report. AGA chief executive Bill Miller said federal oversight of the platforms is inadequate, while state authorities and platform operators dispute whether the products fall under state gaming rules or federal jurisdiction.
The American Gaming Association and Indian Gaming Association urged Congress to limit sports-related prediction contracts in a joint letter sent on Friday, according to reports. They argued that platforms offering these contracts could bypass state and tribal gambling laws and taxes, and called for the Digital Asset Clarity Act to address the issue.