AGA Warns Senators on Prediction Markets • This Week in Gambling

The American Gaming Association issued a stark warning about sports prediction markets to federal lawmakers this week, labeling them as backdoor betting operations that pose a direct threat to the established regulated gaming industry. Testifying before a U.S. Senate commerce subcommittee, AGA President and Chief Executive Officer Bill Miller argued that these markets are effectively operating as nationwide sports betting platforms.

Miller stated that these platforms bypass the extensive regulatory systems established by states and tribal governments following the repeal of the Professional and Amateur Sports Protection Act in 2018. During the hearing, titled No Sure Bets: Protecting Sports Integrity in America, Miller told senators that prediction markets are repackaging sports betting as financial products. He noted that consumers are risking money on the outcomes of sporting events and individual player performances, which makes the activity indistinguishable from traditional sports gambling.

The AGA highlighted Kalshi as a primary example of this rapid expansion under the oversight of the Commodity Futures Trading Commission. According to testimony, sports-related activity on Kalshi grew from just 227,000 dollars in volume in 2024 to representing approximately 86 percent of its business today, generating more than 47 billion dollars in trading volume this year alone. Miller argued that this growth undermines the rights of states and tribes to regulate gambling within their borders. Currently, 39 states and Washington, D.C., have legalized sports betting through frameworks that include strict licensing, consumer protections, and integrity monitoring.

The gambling trade group also raised consumer protection concerns regarding these markets, particularly minimum age requirements. While most legal sportsbooks require patrons to be 21 years old, prediction markets generally permit participation by 18-year-olds. Furthermore, Miller warned that the markets are aggressively marketing their products using language that blurs the line between investing and gambling.

The AGA testimony concluded with a call for Congress to reinforce state authority over sports wagering and to support the Prediction Markets Are Gambling Act, a bill introduced earlier this year by Senators Adam Schiff and John Curtis. Miller emphasized that sports betting must remain within transparent, accountable state and tribal systems rather than unregulated markets.