Senate Introduces Bill to Strip Sports Betting from Predictions Markets

Sites like Kalshi and Polymarket made their bones by allowing users to bet on world events. A customer can bet “yes” or “no” on many political and worldly happenings and profit if their prediction comes true. Last year, these same markets decided to introduce a sports option which essentially allowed people to bet on sports as well. Even well-known financial apps like Robinhood got in on the action.

This morning Senators Adam Schiff (D – Calif.) and John Curits (R – Utah) introduced a bill which would strip these markets from their ability to offer sports on their prediction markets.

Schiff said “Sports prediction contracts are sports bets – just with a different name. It’s time for Congress to step in and eliminate this backdoor which violates state consumer protections, intrudes upon tribal sovereignty and offers no public revenue.”

They are also aiming to remove any casino type gaming as well. Curtis said, “addictive sports betting and casino-style gaming contracts” belong “under state control, not under federal regulators”.

There is most likely pressure being put on these two men, as well as many others in congress and the senate, to put the hammer down on these prediction market makers by already existing and licensed sportsbooks operating within the United States. In fact, the stock market has reacted this news by betting heavier on these sportsbooks. Let’s take a look:

Key Stock Movements & Drivers (March 23, 2026):

• [DraftKings (DKNG)] shares climbed, with reports indicating a rise of roughly 2.7% to 7% in early trading.
• [Flutter Entertainment (FLUT)] (FanDuel parent) gained approximately 5% to 6%.
• [Penn Entertainment (PENN)] rose over 6%.
• [MGM Resorts (MGM)] gained roughly 5.5%.

There is no market option available yet to bet if the bill will be successful or not but knowing how cheeky Polymarket likes to get on their social media, it wouldn’t surprise me if they added one very soon.