Written by :
Published on :
The American Gaming Association and Indian Gaming Association (IGA) have sent out letters to members of the House and Senate voicing concerns over prediction markets.
"We firmly believe that congressional consideration of cryptocurrency market structure legislation provides an important, bipartisan opportunity to prevent sports betting and casino gambling under the guise of ‘event contracts,’” according to the letter.
They added that "not only are those derivatives available to anyone who’s at least 18 years old, but related expansion is threatening state and tribal revenue streams.
“According to 39 state Attorneys General, these contracts are contrary to their state laws. They violate the Indian Gaming Regulatory Act (IGRA) that gives tribes exclusivity to offer gaming products on their land. Sports event contracts also violate the federal Wire Act that makes it illegal to offer sports wagers across state lines,” the AGA and IGA point out in their letter.
The AGA is involved in promoting, educating and lobbying on behalf of some gambling operators.
Prediction markets like Kalshi insist they are not gambling but rather a form of trading. The website is regulated by the Commodity Futures Trading Commission (CFTC), a U.S. federal agency, operating as a federally regulated exchange (a Designated Contract Market or DCM) for event contracts.
Kalshi is now the most downloaded gambling-related site in the US. Contracts are simple Yes or No. There is no “house edge” like a casino — prices are set by traders.
- Gilbert Horowitz, Gambling911.com
