Senators John Curtis (R-Utah) and Adam Schiff (D-California) introduced "The Prediction Markets Are Gambling Act," seeking to ban prediction markets from offering sports betting-like transactions. The bipartisan bill would amend federal law to prevent sports and casino-style event contracts on platforms regulated by the CFTC, adding to growing efforts to regulate prediction markets.

State regulators have intensified pressure on prediction markets. Nevada temporarily blocked Kalshi from offering sports-related contracts, while Arizona became the first state to bring criminal charges against the company. Prosecutors filed a 20-count complaint accusing Kalshi of accepting illegal bets on sports and elections in violation of state laws.

Kalshi co-founder Tarek Mansour criticized the legislation as the "casino lobby hard at work," arguing banning prediction markets would push activity offshore. Despite regulatory battles, business continues booming. Major League Baseball announced a partnership with Polymarket, and Kalshi reportedly raised $1 billion in new financing, highlighting the industry's continued growth despite legal challenges.