A new bipartisan Senate bill would restrict sports event contracts on prediction market platforms, marking the first bipartisan congressional effort to address the sector’s expansion into areas traditionally associated with sports betting.

The legislation, backed by Sen. Adam Schiff (D-Calif.) and Sen. John Curtis (R-Utah), would prohibit sports event contracts and certain casino-style offerings on Commodity Futures Trading Commission-regulated exchanges, according to a report from The Wall Street Journal. Lawmakers have raised concerns that the products may fall outside existing state regulatory frameworks.

The proposal builds on earlier efforts in Congress, including legislation from Rep. Dina Titus (D-Nev.) that similarly targets sports-related prediction market activity, but stands out for drawing support from both parties in the Senate.

The Schiff/Curtis bill, dubbed the the Prediction Markets Are Gambling Act, comes as prediction market platforms continue to face legal challenges from states that argue sports event contracts function similarly to sports betting, which is regulated at the state level. Platforms, meanwhile, maintain that they fall under federal oversight by the CFTC, which they say preempts state law. Nevada recently became the first state to successfully force Kalshi to halt certain event contracts through a court-ordered temporary restraining order.

Shares of DraftKings and Flutter Entertainment (FanDuel’s parent company) rose following the report, with DraftKings up 7.2% in premarket trading and Flutter gaining 9.4%, according to the WSJ.

The WSJ reported that the bill, introduced March 23, would prohibit CFTC-regulated platforms, including Kalshi and Polymarket’s U.S. app, from listing contracts tied to sporting events.

“The CFTC is greenlighting these markets and even promoting their growth,” Schiff told the outlet, adding that Congress should “step in and eliminate this backdoor which violates state consumer protections, intrudes upon tribal sovereignty and offers no public revenue.”

Curtis raised similar concerns around oversight and access, particularly as participation grows. “Too many young people in Utah are getting exposed to addictive sports betting and casino-style gaming contracts that belong under state control, not under federal regulators,” he said.

Kalshi pushed back on the proposal, with spokesperson Elisabeth Diana telling Front Office Sports that sports event contracts on federally regulated prediction market platforms “offer a fairer choice to consumers, with no house that restricts winners and hooks people the more they lose.”

Kalshi CEO and co-founder Tarek Mansour echoed that sentiment in a post on X, saying banning sports event contract trading will only push the activity offshore.

Casino lobby hard at work.

There is a reason tens of millions of people use regulated prediction markets: it’s a better product.

Banning just pushes this offshore, where no regulation exists.

This bill isn’t about protecting consumers; it’s about protecting monopolies. https://t.co/otzm0U4Te8

Schiff has already backed separate legislation targeting other areas of the prediction market sector. Earlier this month, he co-introduced the DEATH BETS Act, which would ban contracts tied to war, terrorism, assassination, and death, citing concerns around national security and insider information. The measure was introduced as a bicameral effort alongside Rep. Mike Levin (D-Calif.) in the House.

The latest proposal adds to a growing list of congressional efforts aimed at regulating prediction markets from multiple angles. Lawmakers have introduced bills addressing everything from sports-related contracts to insider trading, consumer protections, and participation by public officials.

Most recently, Sen. Chris Murphy (D-Conn.) and Rep. Greg Casar (D-Texas) announced the “BETS OFF Act” on March 17, which would ban contracts tied to government actions and other insider-sensitive events.

The week prior, Sen. Richard Blumenthal (D-Conn.) announced the “Prediction Markets Security and Integrity Act” on March 11, a broader framework focused on insider trading restrictions, underage participation limits, and fraud prevention.

Lawmakers have now proposed eight separate measures targeting prediction markets since the start of 2026.

While the proposals vary in scope, the Schiff/Curtis bill is one of the first to directly target sports contracts, an area that has drawn the most attention from both regulators and the gaming industry. That focus helps explain the stock reaction, as investors view restrictions on sports contracts as potentially limiting a key area of overlap between prediction markets and traditional sportsbooks.

More broadly, the growing number of proposals suggests lawmakers are moving quickly to define the boundaries of prediction markets as the sector expands. Whether through targeted bans or broader regulatory frameworks, the proposals point to Congress taking a more active role in defining the limits of CFTC oversight and how prediction markets operate alongside existing financial and gaming regulations.

The post New Bipartisan Senate Bill Targets Sports Prediction Markets appeared first on DeFi Rate.

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