Calling sports betting a “prediction market” does not change what it is — it’s gambling.
Over decades, Washington state has built a carefully regulated gaming system designed to protect consumers, respect tribal sovereignty, and honor the government-to-government agreements between the state and tribes. That system didn’t happen by accident. It was negotiated, approved, regulated, and refined over many years to ensure gaming is conducted responsibly and legally.
Rebranding Doesn’t Change the Product
Now companies like Kalshi, Polymarket, and Crypto.com are offering sports bets while calling them financial products. This is much more than a name change. It’s an attempt to avoid federal, state, and tribal law. It’s a dangerous situation, and Congress needs to stop it.
Washington is Taking Action
The Washington Indian Gaming Association (WIGA) has welcomed Washington State Attorney General Nick Brown’s lawsuit against Kalshi. As the Attorney General’s Office stated in its March 27 filing, “Kalshi attempts to skirt state law by branding its betting platform as a ‘prediction market,’ but whatever Kalshi chooses to call it, Kalshi’s operations clearly fall under the definition of illegal gambling in Washington.”
Washington’s lawsuit is a crucial step. But state enforcement alone cannot solve a national problem.
The CFTC is Failing to Draw a Clear Line
Since January 2025, WIGA has watched with growing concern as the Commodity Futures Trading Commission (CFTC) has failed to clearly separate legitimate financial markets from sports event contracts that look and act like gambling.
More recently, the CFTC has gone further by arguing that federally-regulated “prediction markets” preempt state and tribal gambling laws. If allowed to stand, that interpretation would turn the Commodity Exchange Act into a backdoor national sports betting law — something Congress never approved and must not allow.
This debate is not about stopping legitimate financial markets. Real financial contracts help businesses, producers, or commercial participants manage economic risk. That is an important and lawful function. But sports betting shouldn’t be repackaged as a federally protected financial product simply to avoid the laws and safeguards that legal gaming operations must follow.
What’s At Stake
Indian gaming has transformed tribal communities across the country. It has helped lift families out of poverty and funded essential public infrastructure and services like education, healthcare, public safety, and cultural preservation. It has also benefited surrounding communities through job creation, economic development, and local investment.
Indian gaming remains the most successful tribal economic development initiative in American history. It has strengthened tribal self-reliance and reinforced the importance of tribal sovereignty. Now that progress is under attack. In fact, due to federal inaction, tribes now face the greatest threat to tribal gaming in nearly four decades.
The danger is not theoretical. Kalshi has grown rapidly by marketing itself as the first legal sports betting platform in all 50 states. While the company recently shifted its language to include terms like “investing,” its marketing still heavily targets young men. Representatives for these platforms regularly appear on college campuses, at local bars, and at public events, encouraging people to download and use their gambling apps.
A National Problem Requires a Federal Response
WIGA has been working closely with its 23 member tribes and tribes across the country to urge elected officials, regulators, and courts about what’s happening.
Washington state has taken legal action. Attorneys general in 41 other states have raised similar concerns. Hundreds of tribes are sounding the alarm. Now Congress must act.
Congress should make clear that the Commodity Exchange Act is not a backdoor sports betting law. Legitimate financial markets should remain protected. But contracts that function like sports wagers shouldn’t be allowed to bypass state, tribal, and federal gaming laws. It’s past time for decisive action to protect the public, uphold tribal sovereignty, and prevent lasting damage before it’s too late.
