US Senators Introduce Bill to Regulate Prediction Markets as Gambling Entities

Senators Adam Schiff and John Curtis have introduced bipartisan legislation aimed at reclassifying and regulating US prediction markets. The proposed 'Prediction Markets Are Gambling Act' seeks to oversee these platforms as gambling entities rather than traditional financial markets. This legislative move follows growing concerns over the integrity of event-based betting as platforms like Polymarket and Kalshi gain mainstream popularity. If passed, the bill could significantly restrict the types of contracts offered, particularly those involving political outcomes and elections. The classification as gambling is expected to increase compliance costs and potentially limit retail access to these platforms across the country. This development poses a strategic challenge to the event contracts industry, which has been lobbying for recognition as legitimate financial hedging tools.