The American Gaming Affiliation (AGA) and the Indian Gaming Affiliation (IGA) are calling on Congress to step in as crypto-based prediction markets roll out a brand new wave of sports-betting-style contracts, saying these merchandise might sidestep and weaken state and tribal gaming legal guidelines.
In a joint letter despatched to lawmakers in each chambers, the 2 teams requested that the problem be addressed as a part of cryptocurrency laws presently shifting by Congress.
“We write to induce well timed congressional motion to handle the explosion of unregulated sports event contracts being provided by prediction markets,” the teams wrote.
As we speak, the AGA and Indian Gaming Affiliation despatched a letter urging Congress to make use of cryptocurrency market construction laws to finish nationwide sports activities betting disguised as “occasion contracts.”
Learn the letter
https://t.co/iUZ3qSgw4T
— American Gaming Affiliation (@AmericanGaming) January 12, 2026
The teams say these contracts look and act so much like common sports activities bets, however they’re being provided exterior the principles that licensed sportsbooks should observe. What began early final yr as easy bets on who would win a sport has since grown into extra sophisticated choices, together with parlays and even contracts tied to the place gamers may find yourself.
“Since these contracts, which can be indistinguishable from authorized sports activities betting, have been launched final January, they’ve grown exponentially in buying and selling quantity and have expanded past the end result of single video games to incorporate advanced parlays and even potential wagers on the collegiate switch portal,” the letter acknowledged.
The teams additionally argue that prediction market platforms registered with the Commodity Futures Buying and selling Fee are benefiting from weak enforcement to push the boundaries of what they’re allowed to supply.
“This development has occurred by exploiting regulatory inaction by the Commodity Futures Buying and selling Fee (CFTC), which undermines state regulation and tribal sovereignty and flies within the face of current federal legal guidelines and regulation meant to guard customers and the integrity of our nation’s monetary markets,” they wrote.
Gaming teams name on Congress to crackdown on crypto prediction markets
They are saying Congress now has an opportunity to step in by placing limits on these merchandise into the crypto market laws that’s presently shifting by Capitol Hill.
“We firmly imagine that congressional consideration of cryptocurrency market construction laws supplies an necessary, bipartisan alternative to forestall sports activities betting and on line casino playing beneath the guise of ‘occasion contracts,’” the teams mentioned.
The AGA and IGA say regulated gaming firms should play by an extended listing of guidelines designed to guard customers, whereas prediction market platforms face far fewer limits, from decrease age necessities to looser compliance requirements. They argue that this lets the platforms sidestep state and tribal authority and keep away from paying taxes that assist assist public companies.
Of their letter, the teams additionally say these contracts break a variety of federal and state legal guidelines, together with the Commodity Change Act, the Indian Gaming Regulatory Act, and the Wire Act. They level out that a number of state attorneys normal have already mentioned the platforms are working illegally.
In addition they warn that prediction markets are beginning to transfer into extra delicate territory, together with bets tied to overseas conflicts and political figures.
“Most not too long ago, questions and considerations have been raised concerning contracts tied to the seize of Venezuelan President Nicolas Maduro and ongoing armed conflicts overseas – classes that might by no means be permitted beneath state or tribal regulation,” the letter mentioned.
The teams warned that the platforms blur the line between gambling and investing whereas exposing customers to severe dangers.
“These contracts are being provided in flagrant disregard of state legal guidelines, tribal sovereignty, the Commodity Change Act, and CFTC rules,” the letter acknowledged, including that they “mislead customers into believing {that a} sports activities guess is an funding, fail to guard the younger and the susceptible, open the door to cash laundering, match fixing and insider buying and selling.”
The letter additionally cited feedback by CFTC Chairman Michael Selig throughout his affirmation listening to, saying he would defer to Congress whereas associated lawsuits are pending.
“Throughout his affirmation listening to, Chairman Selig made it clear that the CFTC wouldn’t rein in sports activities betting contracts beneath his management, as a substitute deferring to the end result of litigation that might take years to be totally resolved,” the teams wrote. “Nevertheless, Mr. Selig additionally mentioned that the CFTC would observe Congress in the event that they have been to step in and converse on these contracts.”
The organizations urged lawmakers to explicitly bar gambling-style contracts on CFTC-regulated platforms.
“Subsequently, it’s important that Congress act swiftly to incorporate legislative language within the cryptocurrency market construction laws that reenforces current regulation and prohibits gaming by CFTC-registered platforms,” the letter mentioned.
The letter was signed by Invoice Miller, president and CEO of the American Gaming Affiliation, and David Z. Bean, chairman of the Indian Gaming Affiliation.
Featured picture: American Gaming Affiliation / Indian Gaming Affiliation
The submit AGA and Indian Gaming Association urge Congress to curb crypto prediction markets threatening betting appeared first on ReadWrite.
