U.S. Senators Propose Ban on Sports Bets in CFTC-Regulated Markets

U.S. senators are drafting legislation aimed at prohibiting sports bets and casino-style contracts on prediction markets regulated by the Commodity Futures Trading Commission (CFTC). According to NS3.AI, sports contracts could represent up to 90% of event-contract activity on platforms such as Kalshi and Polymarket. The ongoing debate involves CFTC rulemaking, state court actions, and a wider discussion on whether these products should be classified as federally supervised derivatives or gambling.