Rep. Khanna urges Congress to ban sports prediction markets as Democratic oversight push intensifies
California Representative Ro Khanna called on Congress to ban sports prediction markets, citing addiction risks and gambling law violations. The call joins a broader Democratic oversight push targeting the industry. Senator Elizabeth Warren criticized what she described as 'Wild West-style' oversight of prediction markets, while Representative Adam Schiff challenged the CFTC's defense of nationwide access to sports contracts. Congressional hearings could begin before new legislation moves through committee.
Khanna's ban demand adds a federal legislative front to the multifaceted attack Kalshi already faces in state courts and tribal jurisdictions. Unlike the Utah felony charges or the California tribal injunction, a congressional ban would override CFTC registration entirely and apply uniformly across states. Warren's oversight framing and Schiff's direct challenge to the CFTC signal coordinated Democratic pressure that could accelerate hearings without waiting for slow rulemaking.
Every registered platform now must watch whether this legislative threat outpaces the CFTC's twin swap-rule proposal. Sporttrade and Polymarket US built their sports strategies around federal preemption; a statutory ban would make that legal foundation irrelevant. The industry must now split lobbying resources between defending against state prosecution and heading off federal prohibition.
Khanna's call joins the California tribal injunction, Utah felony summons, Washington private recovery suit, and the CFTC's own swap-rule proposal in a five-front assault on Kalshi's sports-contract model that no federal preemption argument can fully cover.