Federal lawmakers have spent months discussing methods to tighten oversight of sports activities betting and prediction markets, but efforts to create new nationwide guidelines have slowed considerably.
Members of each events have raised issues in regards to the fast progress of on-line playing and the power of present programs to stop issues akin to recreation manipulation, dangerous betting conduct, and misuse of delicate info. Despite these issues, proposed laws has struggled to realize sufficient help to maneuver ahead earlier than the following election cycle.
Sports betting has expanded throughout the United States for the reason that Supreme Court allowed states to determine whether or not to legalize the exercise in 2018. Today, main on-line platforms have thousands and thousands of customers, whereas lawmakers proceed debating how a lot duty corporations ought to have in defending clients.
Critics have targeted consideration on giant operators, together with FanDuel and DraftKings, arguing that stronger safeguards are wanted to handle dangerous betting habits and attainable integrity points in sports activities.
Lawmakers Debate Federal Rules for Online Wagering
The SAFE Bet Act stays one of many predominant proposals aimed toward altering how on-line sports activities betting operates. The laws would set up federal requirements for the business and create shopper protections, with explicit consideration on youthful customers.
The proposal has acquired help from lawmakers who consider states alone haven’t supplied sufficient consistency in regulating the rising market. However, the measure has failed to achieve the Senate flooring, leaving supporters pissed off as issues proceed to extend.
Sen. Richard Blumenthal mentioned corporations concerned in playing have pushed again towards stricter oversight by important lobbying efforts.
Questions about relationships between sportsbooks {and professional} sports activities have additionally turn into a part of the controversy. Partnerships involving leagues, groups, and athletes have raised issues about whether or not the present system offers sufficient safety towards conflicts of curiosity.
Recent incidents have added stress on lawmakers. Philadelphia Phillies star Bryce Harper confronted criticism after recording a video message for a FanDuel VIP buyer who had misplaced lots of of hundreds of {dollars} on the platform and later filed a lawsuit accusing the corporate of predatory practices.
College sports activities have additionally confronted scrutiny after former Texas Tech quarterback Brendan Sorsby acquired a contest ban after acknowledging that he positioned wagers involving groups he was related to.
Prediction Markets Draw Attention Over Oversight Questions
Prediction markets have created one other problem for lawmakers as a result of they permit customers to commerce contracts tied to attainable outcomes involving politics, enterprise, sports activities, and leisure.
Companies akin to Kalshi and Polymarket function beneath oversight from the Commodity Futures Trading Commission. Unlike conventional sportsbooks, these platforms use two-sided contracts the place contributors commerce primarily based on anticipated outcomes.
Concerns elevated after reviews that authorities staff used prediction markets to make trades related to official occasions and knowledge. One reported case concerned a White House teleprompter operator who positioned wagers associated to statements President Trump would make throughout a speech. Kalshi reported the incident, and the worker was later positioned on depart.
Gambling habit specialists have additionally warned that on-line platforms can encourage repeated betting conduct.
“It’s all gambling. It works in your mind the same way. The same chase, the same rush. It fuels that same compulsion,” mentioned Phil Smyth, a playing habit specialist on the Milestone Treatment Center. “It’s particularly younger men. It starts with a fun fantasy football league or minor things, but so many people have that predisposition to potentially fall into addiction with these platforms.”
Election Timing Makes New Laws Less Likely
Another proposal from Sen. Adam Schiff would stop prediction markets from providing contracts tied to sports activities video games. Schiff has argued that these markets create dangers as a result of they can be utilized in methods much like on line casino betting whereas creating alternatives for manipulation.
Schiff additionally questioned whether or not the Commodity Futures Trading Commission has sufficient assets to oversee prediction markets.
“Not only has the CFTC not made this a priority; but they’ve also devastated the enforcement staff,” Schiff mentioned. “They don’t have the capacity. It’s just another reason they shouldn’t be the sole regulator of this.”
Observers in Congress have expressed doubt that main playing laws will go earlier than the midterm elections. A Republican strategist mentioned lawmakers have restricted time and plenty of competing priorities earlier than the election.
The debate over sports activities betting and prediction markets is predicted to proceed by state actions, courtroom disputes, and extra congressional discussions. For now, lawmakers have but to achieve an settlement on a federal strategy for industries that proceed to broaden throughout the nation.
Source:
Congress Stalls on Sports Betting Reform Efforts, realmoneyaction.com, July 29, 2026.
