A pair of sports betting stakeholder groups have asked for congressional aid in their battle against prediction market platforms that offer sports event contracts.
Key Takeaways
- AGA, IGA argue that sports event contracts undermine laws and sovereignty.
- The group points to age-requirement differences and market manipulations.
- The associations want to add a ban on sports contracts to a current cryptocurrency market structure bill.
The American Gaming Association (AGA) and Indian Gaming Association (IGA) jointly sent a letter to the U.S. Senate and House of Representatives dated Monday, urging Congress to use the current cryptocurrency market structure legislation to halt markets that are “indistinguishable from legal sports betting.”
“They have grown exponentially in trading volume and have expanded beyond the outcome of single games to include complex parlays and even potential wagers on the collegiate transfer portal,” the associations wrote in the letter. “This growth has occurred by exploiting regulatory inaction by the Commodity Futures Trading Commission (CFTC), which undermines state law and tribal sovereignty and flies in the face of existing federal laws and regulations intended to protect consumers and the integrity of our nation’s financial markets.”
Today, the AGA and Indian Gaming Association sent a letter urging Congress to use cryptocurrency market structure legislation to end nationwide sports betting disguised as “event contracts.”
— American Gaming Association (@AmericanGaming) January 12, 2026
Read the letter ⬇️ https://t.co/iUZ3qSgw4T
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Challenging times
The AGA is a trade industry group that represents commercial and tribal casino, sports betting, and iGaming operators, suppliers, and other gaming companies in the U.S. The IGA represents more than 180 federally recognized tribal nations and promotes gaming sovereignty and economic development.
“Together, our associations represent the legal regulated gaming industry in the United States that generates $329 billion in annual economic impact, produces $53 billion in tax revenue, and supports 1.8 million jobs,” the group said in the letter.
Gaming leaders and politicians across America have become concerned with the rise of trading exchanges offered in 50 states since last January. Prediction market companies have increased from Kalshi in 2024 to two of the biggest names in the gaming industry – FanDuel and DraftKings – launching platforms in late 2025.
Kalshi, Crypto.com, Robinhood, and others are currently involved in lawsuits and cease orders in multiple U.S. states with legal sports betting, like Nevada, New York, and Connecticut.
'Flagrant disregard'
In the letter to Congress, the associations argue that the sports event contracts are being offered in “flagrant disregard” for laws and tribal sovereignty, and point to the legal age of 18 to use prediction market platforms. Legal sports betting requires users to be 21 or older.
“They mislead consumers into believing that a sports bet is an investment, fail to protect the young and the vulnerable, open the door to money laundering, match fixing, and insider trading,” the AGA and IGA said. “They rob state budgets and tribal finances while simultaneously forcing states and tribes to expend massive legal resources to defend their sovereignty.”
While not involving sports, the associations cite the recent contracts offered involving the capture of Venezuelan President Nicolas Maduro and the Ukraine-Russia conflict that saw users make money reportedly based on inside information.
A Congressional leader has filed a bill in hopes of curbing that activity.
The group’s hope
A cryptocurrency market structure bill was filed in the Senate on Monday that would give the industry a regulatory framework.
The AGA and IGA want sports event contracts added to that legislation after the group said the CFTC, which regulates prediction markets, is not planning to “rein in sports betting contracts” under new chairman Michael Selig.
“However, Mr. Selig also said that the CFTC would follow Congress if they were to step in and speak on these contracts,” the AGA and IGA said. “Therefore, it is critical that Congress act swiftly to include legislative language in the cryptocurrency market structure legislation that reinforces existing law and prohibits gaming through CFTC-registered platforms. We stand ready to work with you on this issue and appreciate your consideration.”
