US Senator Bernie Moreno introduced a resolution proposing to prohibit sitting senators from trading event contracts on prediction markets. The proposed measure would amend Senate rules; its prospects remained uncertain, although the report said it could attract bipartisan support.
If adopted, the resolution would restrict senators’ participation in prediction-market event contracts.
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Tribal gaming representatives and senators are urging Congress to add restrictions on sports and casino betting through prediction markets to the Clarity Act. At a Senate Indian Affairs Committee roundtable, Indian Gaming Association Vice Chairman Tehassi Hill called for state and tribal gaming laws to govern those markets; Senator John Boozman opposed adding the provisions to the bill or Farm Bill.
It was reported that 12 Democratic senators urged congressional committees to add a prediction-market ban to the pending CLARITY Act. Their 17 July letter targets contracts resembling sports wagers or casino games.
Nevada senators Jacky Rosen and Catherine Cortez Masto urged a Senate appropriations panel to bar the CFTC from using federal funds to sue states and tribes regulating prediction platforms. In a late June letter, they argued the lawsuits risk addiction and underage exposure to betting products and infringe on state and tribal authority.
Seventeen Democratic senators asked a Senate appropriations subcommittee to bar the CFTC from using federal funds for lawsuits over prediction markets. The CFTC has sued nine states, arguing it has sole jurisdiction over the operators, while the senators say states should retain authority to regulate gambling.
New Jersey senators Nicholas Scutari and Paul Sarlo introduced a bill to regulate prediction markets and require operators to obtain state permits. The proposal would add a 10% tax surcharge to prediction-market trades, including sports-related contracts, and set a $5 million initial licensing fee for firms offering sports contracts; it has been referred to the Senate Budget and Appropriations Committee.