Indian Gaming Association lobbies to add sports-contract curbs to CLARITY Act
The Indian Gaming Association is lobbying senators to add sports and casino-style prediction market restrictions to the CLARITY Act and preserve tribal gaming laws as the legislation enters a pivotal stretch. The push targets the bill's current form, which tribal leaders fear could undermine existing tribal gaming compacts by opening the door to unregulated or loosely regulated sports and casino-style event contracts.
The gaming industry lobby adds political weight to a Senate ban that would eliminate the highest-volume product line for Kalshi and Polymarket. Both platforms are CFTC-registered and have invested heavily in sports contracts; losing them nationwide would accomplish what state attorneys general have struggled to achieve. For tribal operators, the fight is about sovereignty: they argue federal prediction markets bypass tribal gaming compacts and the regulatory structure built around them.
The platforms now face parallel pressure from Congress, state courts, and tribal interests. If the Senate moves faster than the CFTC's June proposal to allow sports contracts, the regulatory path the platforms bet on could close before it opens. Traders face uncertainty about whether existing positions survive or must close. DraftKings and Robinhood, with their own event-contract launches, must assess whether a ban creates space or engulfs them too.