The American Gaming Association (AGA) and Indian Gaming Association (IGA) have jointly called on the United States Congress to take immediate action against the proliferation of sports event contracts offered by prediction markets.
In a letter addressed to members of the Senate and House of Representatives, the two organizations warned that these contracts, which closely resemble legal sports betting, are expanding rapidly and undermining both state law and tribal sovereignty. The letter was signed by Bill Miller, President and CEO of the American Gaming Association, and David Z. Bean, Chairman of the Indian Gaming Association.
Since their launch, sports event contracts available on certain prediction markets have seen a sharp rise in trading volume. The offerings have evolved beyond single-game outcomes to include complex parlay bets and even scenarios such as wagers on collegiate athletic transfers.
According to the associations, this expansion has been enabled by the Commodity Futures Trading Commission’s (CFTC) failure to intervene, which they argue is a violation of both federal and state regulations and the Indian Gaming Regulatory Act (IGRA).
“These contracts are being offered in flagrant disregard of state laws, tribal sovereignty, the Commodity Exchange Act, and CFTC regulations,” the letter states.
“They mislead consumers into believing that a sports bet is an investment, fail to protect the young and the vulnerable, open the door to money laundering, match fixing and insider trading. They rob state budgets and tribal finances while simultaneously forcing states and tribes to expend massive legal resources to defend their sovereignty.”
The CFTC’s current stance, according to the letter, has allowed several registered prediction markets to self-certify contracts and offer them nationwide to individuals 18 and older. This circumvents the regulatory frameworks of 39 states and the District of Columbia, which have legalized sports betting with safeguards in place, often in partnership with tribal governments.
In their appeal, the AGA and IGA stressed the importance of maintaining local oversight through the existing system, which they described as delivering transparency, integrity, and consumer protection.
They noted that the regulated gaming industry supports 1.8 million jobs, generates $329 billion in annual economic impact, and contributes $53 billion in tax revenue.
Licensed operators, they said, are subject to oversight from more than 8,400 state and tribal regulators and must comply with requirements including minimum betting ages, anti-money laundering protocols, and mandatory responsible gaming measures.
The letter also highlighted the legal boundaries set by the CFTC’s own rules under the Commodity Exchange Act, which prohibit contracts on gaming and other sensitive issues. The two associations pointed out that, according to 39 state Attorneys General, the current contracts violate state laws and further contravene the federal Wire Act, which prohibits cross-border sports betting.
The associations cited additional examples of event contracts they find troubling, including bets on the capture of Venezuelan President Nicolas Maduro and other international conflicts, arguing such offerings would never be permitted under existing state or tribal regulations.
While the CFTC, under Chairman Rostin Behnam Selig, has indicated it will not proactively regulate sports betting contracts and will instead await judicial outcomes, the associations emphasized that Selig also stated he would defer to congressional direction.
“Therefore, it is critical that Congress act swiftly to include legislative language in the cryptocurrency market structure legislation that reinforces existing law and prohibits gaming through CFTC-registered platforms,” the letter stated.
The AGA and IGA concluded by expressing their readiness to work with lawmakers on the issue as cryptocurrency legislation progresses.
Original article: https://www.yogonet.com/international/news/2026/01/13/117104-aga-and-iga-urge-congress-to-curb-prediction-markets-bypassing-state-and-tribal-laws
