Gambling groups seek ban on sports contracts in CLARITY Act

Several national gaming groups, tribal organizations and labor unions asked the U.S. Senate to add language to the Digital Asset Market Clarity Act that would explicitly bar sports and casino-style event contracts from prediction market platforms.

The request arrived in a joint letter from groups including the Indian Gaming Association and the American Gaming Association. The letter reads that prediction market platforms have expanded gambling without voter approval or legislative authorization and states that “sports betting falls outside the [Commodity Futures Trading Commission’s] remit and cannot be offered through prediction market platforms.” Lawmakers are considering the CLARITY Act as the vehicle for that clarification.

The appeal comes amid a jurisdictional dispute over prediction markets. The Commodity Futures Trading Commission, led by Chair Michael Selig, has asserted exclusive jurisdiction over event contracts and has backed platforms that trade short-term event contracts against legal challenges from state gaming regulators. Industry groups opposing betting on prediction markets want Congress to bar sports and casino-style wagers in federal law.

Separately, House and Senate leaders released an updated version of the 21st Century Road to Housing Act that keeps a provision preventing the Federal Reserve from issuing a central bank digital currency or any digital asset substantially similar to one until Dec. 31, 2030. The bill specifies the Fed may not, directly or indirectly, issue or create a central bank digital currency. Congressional leaders plan to bring the measure to a vote after the House returns from recess on June 23.

In the European Union, the Markets in Crypto-Assets regulation requires crypto firms to obtain authorization by July 1 to continue serving customers in the bloc. Custody firm BitGo launched a crypto-as-a-service platform for Europe intended to help companies maintain operations while they pursue MiCA licenses. The company stated regulated infrastructure can keep platforms operating safely and compliantly during licensing delays and that it aims to support firms that need immediate compliant custody and settlement solutions.

A national regulator has indicated it may reject a leading global exchange’s MiCA license request, a development that highlights uneven paths to authorization. Firms that fail to obtain authorization by the deadline face restrictions on serving European customers.

Prediction markets let users trade contracts tied to event outcomes. The CLARITY Act seeks to define which digital asset activities fall under federal securities or commodities rules. MiCA establishes licensing, consumer protections and capital requirements for crypto-asset service providers in the EU. The developments reflect parallel regulatory actions in the U.S. and EU affecting how event contracts, exchanges and custodians operate.