American gambling associations have called on the US Senate to ban prediction markets related to sports and gambling as part of a new crypto regulation bill. 

In the view of the organizations AGA, IGA and AGEM, such platforms illegally expand the gambling market without the approval of voters and state authorities.

The authors of the appeal stated that the platforms disguise bets as financial products. This allows them to circumvent local laws, taxes and consumer protection rules. The gambling industry also believes that the US Commodity Futures Trading Commission (CFTC) lacks the resources to oversee betting.

«Congress must confirm: sports betting does not fall within the CFTC's competence and cannot be offered through prediction markets», — the letter emphasizes.

The demand was put forward amid discussion of the CLARITY Act bill. The document had earlier been approved by the Senate Banking Committee.

The largest players in the prediction markets segment remain Kalshi and Polymarket. In May, trading volume on Kalshi reached $16.8 billion, and on Polymarket — $7 billion.

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Recall that Indonesia's Ministry of Communications and Digital Technologies blocked access to the Polymarket platform. Officials equated the service with an online casino. 

Source: ForkLog