A new proposal in the US Senate aims to redefine prediction markets as a form of gambling, prompted by the growing popularity of betting on future events.
The bill, known as the Prediction Markets are Gambling Act, is backed by Utah Republican Senator John Curtis, as well as Democratic Senators Adam Schiff and Catherine Cortez Masto. The legislation seeks to ban organizations from offering contracts tied to sports, athletic competitions, and casino-style games.
The popularity of prediction markets has surged, with a recent survey by The Siena Research Institute and St. Bonaventure University revealing that 27% of Americans currently hold active accounts. The data indicates that participation is steadily increasing, raising concerns among lawmakers.
Growing Concern Over Gambling’s Impact
In discussing the potential effects of the bill, Curtis noted that limiting these markets would have a minimal economic impact but would mitigate the risks associated with gambling.
As the federal government steps up its focus on this issue, Curtis hinted that additional legislative action is on the horizon. “What you’re going to see from the Senate is not a short list of bills dealing with these markets,” he stated. “It’s very clear to me and my colleagues that this is important, that we jump on quickly.”
Another proposal, the Public Integrity in Financial Prediction Markets Act of 2026, seeks to address potential conflicts of interest by preventing government officials from using nonpublic information to engage in prediction market trades. Curtis, Schiff, and Senators Elissa Slotkin and Todd Young are among the supporters of this measure.
Utah Takes a Hard Line on Gambling
The push for federal action also aligns with Utah’s longstanding opposition to gambling. For over a century, the state has maintained a broad ban on gambling, and recent legislative efforts have clarified that certain types of proposition bets are included under this definition. Utah lawmakers passed House Bill 243, which specifically targets the types of bets involved in prediction markets.
While Utah already prohibits sports betting, the state’s strict laws, coupled with geolocation tools, prevent residents from accessing many gambling platforms. However, some Utah residents have attempted to bypass these restrictions.
Washington Increases Scrutiny on Prediction Markets Betting Trade
As prediction markets gain popularity, lawmakers in Washington are raising concerns over the potential for abuse, particularly regarding insider access to sensitive information.
Platforms like Polymarket and Kalshi have come under scrutiny after reports of users profiting from specific geopolitical events, such as bets on a U.S.-Iran ceasefire or military operations.
Rep. Seth Moulton criticized Polymarket for allowing these practices, calling it “war profiteering.” The growing issue has garnered bipartisan attention, with senators proposing legislation to prevent government employees from using confidential data for market trading.
Meanwhile, Kalshi supports tighter regulation to prevent insider trading and ensure market integrity.
Malta Considers First EU Framework for Prediction Markets
Malta is exploring the possibility of creating a legal framework for prediction markets, positioning itself as one of the first European nations to address this rapidly growing sector.
Government officials, including Economy Minister Silvio Schembri, have confirmed that the country is examining how these markets can operate within a regulated environment. This initiative is part of Malta’s broader effort to foster innovation in its digital economy.
Schembri emphasized the need for clear legislation to support the responsible development of prediction markets, noting that Malta’s previous success in regulating blockchain and crypto assets could serve as a model.
The global rise of platforms like Kalshi and Polymarket, which saw substantial growth in 2025, has drawn international attention, highlighting the sector’s rapid expansion. However, without a unified regulatory approach in Europe, countries like Malta are stepping forward to define the rules for this emerging market. The government’s strategy aims to ensure market integrity and consumer protection, with future regulations likely addressing issues like fair payouts and manipulation risks.
Source:
US Lawmakers Move to Define Prediction Markets Gambling, realmoneyaction.com, April 23, 2026.