Federal lawmakers have spent months discussing ways to tighten oversight of sports betting and prediction markets, yet efforts to create new nationwide rules have slowed significantly.
Members of both parties have raised concerns about the rapid growth of online gambling and the ability of current systems to prevent problems such as game manipulation, harmful betting behavior, and misuse of sensitive information. Despite those concerns, proposed legislation has struggled to gain enough support to move forward before the next election cycle.
Sports betting has expanded across the United States since the Supreme Court allowed states to decide whether to legalize the activity in 2018. Today, major online platforms have millions of users, while lawmakers continue debating how much responsibility companies should have in protecting customers.
Critics have focused attention on large operators, including FanDuel and DraftKings, arguing that stronger safeguards are needed to address risky betting habits and possible integrity issues in sports.
Lawmakers Debate Federal Rules for Online Wagering
The SAFE Bet Act remains one of the main proposals aimed at changing how online sports betting operates. The legislation would establish federal standards for the industry and create consumer protections, with particular attention on younger users.
The proposal has received support from lawmakers who believe states alone have not provided enough consistency in regulating the growing market. However, the measure has failed to reach the Senate floor, leaving supporters frustrated as concerns continue to increase.
Sen. Richard Blumenthal said companies involved in gambling have pushed back against stricter oversight through significant lobbying efforts.
Questions about relationships between sportsbooks and professional sports have also become part of the debate. Partnerships involving leagues, teams, and athletes have raised concerns about whether the current system provides enough protection against conflicts of interest.
Recent incidents have added pressure on lawmakers. Philadelphia Phillies star Bryce Harper faced criticism after recording a video message for a FanDuel VIP customer who had lost hundreds of thousands of dollars on the platform and later filed a lawsuit accusing the company of predatory practices.
College sports have also faced scrutiny after former Texas Tech quarterback Brendan Sorsby received a competition ban after acknowledging that he placed wagers involving teams he was connected to.
Prediction Markets Draw Attention Over Oversight Questions
Prediction markets have created another challenge for lawmakers because they allow users to trade contracts tied to possible outcomes involving politics, business, sports, and entertainment.
Companies such as Kalshi and Polymarket operate under oversight from the Commodity Futures Trading Commission. Unlike traditional sportsbooks, these platforms use two-sided contracts where participants trade based on expected outcomes.
Concerns increased after reports that government employees used prediction markets to make trades connected to official events and information. One reported case involved a White House teleprompter operator who placed wagers related to statements President Trump would make during a speech. Kalshi reported the incident, and the employee was later placed on leave.
Gambling addiction specialists have also warned that online platforms can encourage repeated betting behavior.
“It’s all gambling. It works in your mind the same way. The same chase, the same rush. It fuels that same compulsion,” said Phil Smyth, a gambling addiction specialist at the Milestone Treatment Center. “It’s particularly younger men. It starts with a fun fantasy football league or minor things, but so many people have that predisposition to potentially fall into addiction with these platforms.”
Election Timing Makes New Laws Less Likely
Another proposal from Sen. Adam Schiff would prevent prediction markets from offering contracts tied to sports games. Schiff has argued that these markets create risks because they can be used in ways similar to casino betting while creating opportunities for manipulation.
Schiff also questioned whether the Commodity Futures Trading Commission has enough resources to supervise prediction markets.
“Not only has the CFTC not made this a priority; but they’ve also devastated the enforcement staff,” Schiff said. “They don’t have the capacity. It’s just another reason they shouldn’t be the sole regulator of this.”
Observers in Congress have expressed doubt that major gambling legislation will pass before the midterm elections. A Republican strategist said lawmakers have limited time and many competing priorities before the election.
The debate over sports betting and prediction markets is expected to continue through state actions, court disputes, and additional congressional discussions. For now, lawmakers have yet to reach an agreement on a federal approach for industries that continue to expand across the country.
Source:
Congress Stalls on Sports Betting Reform Efforts, realmoneyaction.com, July 29, 2026.
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