WASHINGTON, D.C. — Senators Adam Schiff (D-Calif.) and John Curtis (R-Utah) introduced legislation in the U.S. Senate that would ban prediction markets such as Kalshi and Polymarket from accepting or listing transactions related to sports events and casino-style games. The bill represents the first bipartisan Senate legislation targeting sports betting on services like Polymarket and Kalshi.

The proposed law would prohibit any entity registered with the Commodity Futures Trading Commission from listing or making available any agreement, contract, or transaction relating to any sporting event or athletic competition, as well as contracts for casino-style games such as poker or blackjack. Traditional sports gambling is regulated by states, while prediction markets use trading mechanisms via futures or commodity contracts and fall under federal oversight.

"Sports prediction contracts are sports bets — just with a different name. These contracts are currently offered in all fifty states in clear violation of state and federal law," Schiff said in a statement. "It's time for Congress to step in and eliminate this backdoor which violates state consumer protections, intrudes upon tribal sovereignty, and offers no public revenue."

"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. The Prediction Markets Are Gambling Act is about respecting states' authority, protecting families, and keeping speculative financial products out of spaces where they don't belong," Curtis said in a statement.

Hours after the bill was introduced, Kalshi announced plans to bar politicians from trading on markets tied to their own campaigns and to ban athletes from placing bets on sports in which they participate. The company wrote in a blogpost that "Individuals involved in college and professional sports (including athletes, personnel, and referees) will be preemptively blocked from trading markets associated with sports they are involved in."

The proposed legislation comes as prediction markets face increased legal scrutiny across multiple states. Prosecutors in Arizona filed criminal charges alleging Kalshi operated a gambling service without a license in violation of Arizona law. A Nevada judge temporarily blocked Kalshi from offering sports-related event contracts.

"Banning sports on regulated prediction markets would just push this behavior offshore, where no regulation exists. It's clear this bill is motivated by casino interests that are threatened by competition," said Elisabeth Diana, a spokesperson.

Major League Baseball announced a partnership with Polymarket and the Commodity Futures Trading Commission to create guidelines aimed at mitigating risk while enhancing fan engagement.