A group of six U.S. Senators has penned a letter to the Commodity Futures Trading Commission (CFTC) demanding clarity on “prediction” betting sites.
Firms like Kalshi and Polymarket lead the nascent prediction gambling sector. In the letter, the Senators asked about how these national betting sites square with state law.
In particular, they asked about how prediction gambling sites address gambling addiction.
The letter from the bipartisan group of U.S. Senators that included Catherine Cortez Masto, John Curtis, Ruben Gallego, Elissa Slotkin, Adam Schiff, and Alex Padilla asked:
“If the CFTC believes that all event contracts listed are outside the scope of prohibitions in the Commodity Exchange Act, how is the CFTC advising sportsbook and self-styled contract market firms seeking this authority on how they must comply with state and tribal laws regarding time limits, budget setting, trained professional assistance and gambling addiction resources?”
Growing Pressure on ‘Prediction’ Sports Betting
The Senators sought answers from the CFTC by the end of October 2025.
At the time of the letter, prediction-style sportsbooks appeared to be self-regulating regarding problem gambling safeguards.
Meanwhile, the traditional betting app sector is required to follow state rules on problem gambling tools, features, and messaging. They must display a gambling helpline number.
The letter also asked the CFTC to clarify whether it sees “sports betting as entertainment or investment products for financial gain.”
Prediction Gambling Letter Misses Broader Point
Critics, such as proponents of the federal SAFE Bet Act, argue that even state-regulated sportsbooks are failing when it comes to addiction.
For example, state-regulated betting apps use celebrities to endorse their products. They also use self-limitation tools that are often ineffective. The “responsible” gambling message, such as budget setting, unfairly puts the onus on the user, rather than the addictive product.
U.S. consumers are also suffering immense harm from sweepstakes and offshore sportsbooks. All forms of online sports betting can be profoundly harmful to a great many users.
When Robinhood launched its sports betting product (powered by Kalshi), the app suggested that gambling was actually investing.
It is dangerous to frame sports betting as investing, as betting addiction stats show high rates of problematic betting behavior. Legalized sports betting has hurt household financial health.
The sports betting addiction crisis has grown to the point that it is actually also dangerous to frame it as entertainment. Betting apps are addictive products by design.
The sports betting industry makes most of its revenue from problem gamblers, according to a 2024 Connecticut study.
In reality, sports betting is neither entertainment nor investing, as it causes immense societal harm. On an individual level, it could be entertainment — but to generalize the activity as fun ignores the data.
The U.S. Senators asked an uninformed question in this regard.
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