On March 23, 2026, two senators walked into the Capitol Hill and dropped a bill that could revamp how Americans use prediction markets. They presented the Prediction Markets Are Gambling Act, a bipartisan bill that would ban prediction contracts tied to sporting events and casino-style games from being offered on federally regulated platforms.
What the Bill Actually Bans
The Prediction Markets Are Gambling Act bill focuses on two major types of markets: sports results and casino-style products.
First, it targets contracts that enable you to bet directly on the outcome of a sporting event. If a contract lets you stake money on who wins a specific match, then lawmakers argue that you are sports betting, and Congress wants them under gambling rules rather than prediction markets.
Second, it goes after casino-style markets. These are markets that look and feel like slots, roulette, or similar games and feature fast spins, fixed odds, and simple win/lose outcomes. Lawmakers argue that when a product behaves like a slot machine, it should be regulated that way.
Senator John Curtis clarified the bill, affirming that it ensures that states can maintain authority over prediction markets. In a statement on X, he said the bill is about “…protecting families, and keeping speculative financial products out of spaces where they don’t belong.”
Why Is Congress Moving Now
Firstly, the size of the markets has grown astronomically. For instance, Super Bowl trading volume on prediction markets surpassed $1 billion in 2026. That type of volume is hard to ignore.
In addition, there is a grey zone argument regarding regulation. Typically, traditional gambling is overseen at the state level. Many prediction platforms have operated under federal oversight, which doesn’t always cover state-specific rules.
Critics argue that prediction markets have an unfair advantage and expose users to risks that regulated sportsbooks must address. The bill responds to that by attempting to place gambling-like products under state jurisdiction.
Where Things Stand – and What Happens Next
Right now, this is just a proposed bill, not a law.
The Prediction Markets Are Gambling Act still has to get through the Senate and the House of Representatives and receive a presidential signature. Congress moves slowly, so the process can take a while, or the bill can stall and fade away.
Meanwhile, the Commodity Futures Trading Commission (CFTC) is updating its rulebook for event contracts. The process can take a while, and the outcome of the ongoing cases between states and prediction markets may influence it.
What This Means for You Right Now
Nothing about prediction markets changes today. You can still place contracts on platforms unless they announce changes.
To be on the safe side, watch out for updates from the Senate, courts, and prediction market platforms.
If you trade on sports results or casino-style markets, the message is loud and clear. Whether the bill gets passed or not, prediction markets will face more scrutiny moving forward.
