U.S. Gambling Industry Pushes to Ban Crypto Prediction Markets

Traditional gambling groups in the United States, including the American Gaming Association and the Native American Gaming Association, have sent a formal letter to the Senate seeking to add an explicit prohibition on cryptocurrency‑based prediction markets to the CLARITY Act. The industry argues that these platforms operate outside existing state gambling laws, bypass tribal agreements, and expose consumers—especially young people—to unregulated gambling presented as financial contracts. The lobbyists assert that the ban would protect tax revenue, enforce consumer protections, and prevent further expansion of illegal betting.

The letter also challenges the Commodity Futures Trading Commission’s authority over these markets, claiming the agency lacks the expertise and infrastructure to oversee them. Several states, including New York, Illinois, Arizona, Connecticut and New Mexico, have already taken enforcement actions against prediction‑market platforms. The proposal now awaits a vote by the full Senate.