Lawmakers introduced the STOP Corrupt Bets Act in both chambers of the US Congress, reportedly seeking to prohibit prediction markets on political and sporting events. The bill’s stated aim is to return event contracts to their original purpose.
The proposed ban could restrict prediction-market offerings tied to political and sporting events in the US.
The day’s most important stories, free. One email a day.
Crypto.com and Novig have sued Missouri officials in federal court to stop the state enforcing its sports betting laws against their sports event contracts. The suits were filed on Friday as 30-day deadlines expired for six prediction market operators ordered by Attorney General Catherine Hanaway to stop offering the contracts or obtain state authorisation. Crypto.com argues the Commodity Exchange Act gives the CFTC exclusive jurisdiction.
Crypto.com and Novig have taken Missouri officials to federal court in an effort to block enforcement of the state's sports betting laws against their sports event contracts. The suits arrived on Friday, the same day that 30-day deadlines ran out for six prediction market operators told by Missouri Attorney General Catherine Hanaway to halt sports event contracts or secure state authorisation.
The US Supreme Court has yet to decide whether to review prediction market litigation involving Kalshi. Legal observers warned that declining review could leave conflicting appeals court decisions unresolved and operators facing separate state disputes over the regulatory status of sports event contracts.
A report dated 12 October 2026 notes that the justices have so far given no indication of whether they will take up the Kalshi prediction market disputes. In the view of legal observers quoted in that report, refusing the petitions would probably push operators into a state-by-state contest over sports event contracts that varies from jurisdiction to jurisdiction.
The National Council of Legislators from Gaming States has filed an amicus brief urging the US Supreme Court to consider the dispute over sports event contracts, reportedly backing New Jersey Attorney General Jennifer Davenport’s petition. The lawmakers argue that states should retain authority over gaming-related products and warn that a ruling for Kalshi could prompt casinos and pari-mutuel businesses to restructure.
Reportedly, Two federal appeals courts disagree on whether sports event contracts constitute bets. Three petitions are before the Supreme Court as Kalshi continues to record trading highs.
The Ninth Circuit ruled for the Blue Lake Rancheria and Chicken Ranch Rancheria of Me-Wuk Indians, reversing a lower court and partially granting their request for a preliminary injunction. The three-judge panel found the tribes were likely to succeed in arguing that Kalshi’s sports-event contracts on tribal lands violated the Indian Gaming Regulatory Act and tribal gaming ordinances.