Bipartisan bill seeks to ban sports betting on Kalshi and Polymarket

Senators Adam Schiff (D-CA) and John Curtis (R-UT) introduced a bill On Monday that would prevent the market platforms Kalshi and Polymarket from allowing users to bet money on sports or play casino-style games.

This bipartisan bill would not apply to FanDuel and DraftKings, which are subject to state gambling laws, rather than the federal one.

“Sports betting contracts are sports betting – just with a different name. However, these contracts are currently being offered in all fifty states in violation of state and federal laws,” Schiff said in a statement.

Gambling has become more prominent in American culture after a 2018 Supreme Court decision that allowed states to legalize gambling. Total sports wagers grew from $4.9 billion in 2017 to $121.1 billion in 2023. Many professional players now have contracts with gambling companies, even as professional athletes. face possible prison time of their assumed roles in spending money plots.

Futures markets like Kalshi and Polymarket are regulated by the Commodity Futures Trading Commission (CFTC), so Schiff and Curtis can deal with them under federal jurisdiction, rather than leaving them to state-run sportsbooks. But these senators argue that there is no significant difference between betting on sports through state-run or state-run programs. Kalshi’s Super Bowl sales, for example, reached $1 billion this year – 2700% increase from year to year.

“Many young people in Utah are beginning to experience recreational sports betting and casino games that are under state control, not state regulation,” Curtis said in a statement.

Curtis worries gambling addiction it is acceptable. Researchers from the University of California at San Diego’s Qualcomm Institute and School of Medicine analyzed their online research and found that when online sports books are available, they seek help with their gambling addiction. increase is 61% and has continued to grow since then.

Kalshi spokeswoman Elisabeth Diana told TechCrunch that the bill would stifle competition and push users to foreign prediction markets.

“It is clear that this bill is driven by casino interests who are threatened by competition. They are more concerned about protecting the monopoly than protecting consumers,” said Diana.

Polymarket did not respond to a request for comment.

Kalshi has faced some legal challenges recently – the program is temporary prohibited in Nevada and are meeting cases in Arizona.

Perhaps it is no coincidence that Kalshi he announced Monday that it will add new surveillance features to reduce the possibility of insider trading and changing politics and sports. The horrors of it it’s not just a guess – last month, Kalshi suspended a politician for advertising on his brand, prompting the platform to fine him and suspend him. YouTube star MrBeast was also found to have used MrBeast’s anonymous public information to place bets.

“After months of collecting and establishing lists of school and professional athletes, and in coordination with our partners at IC360, the official athletes, officials, and staff will be prohibited from trading in the affiliated markets,” Kalshi said in a blog post.

Polymarket also issued clear lines on illegal content on the platform on Monday, revising its rules to say that users cannot gamble using stolen passwords, act on illegal tips, or bet on events they can influence.

Updated, 6:30 PM ET, with lots of new displays from Kalshi and Polymarket.