US gaming groups press Senate to curb crypto prediction markets

US gaming industry groups are pushing Congress to shut sports and casino-style prediction markets out of a pending crypto market structure bill, according to a Semafor report.

The effort lands at a sensitive moment for the digital-asset industry, which has been lobbying for a clearer federal framework after years of patchwork regulation. For gaming operators, the concern is simpler: prediction markets can start to look a lot like unlicensed wagering when contracts are tied to match outcomes, tournament results or other event-driven binary bets.

That distinction matters for traders and exchanges. If lawmakers decide those contracts belong under gambling rules rather than securities or commodities law, platforms that have spent months preparing to list event-based products could be forced to pull back or seek a different license path. It would also sharpen the line between crypto-native financial products and bets that regulators may view as traditional gaming.

Semafor said the gaming groups want Congress to explicitly ban sports and casino-style contracts from the bill. That would put them outside the legislative lane being used to build a broader market structure regime for digital assets. The move also suggests the casino and sportsbook lobby is trying to lock in jurisdiction before any new federal framework leaves room for operators to enter the market through the back door.

For crypto firms, the issue is not theoretical. Prediction markets have already drawn scrutiny in the US because of their resemblance to event wagering, and some venues have tested the edges of what counts as hedging, forecasting or speculation. A ban written into the bill would be a clean stop, not a compliance gray area.

The immediate watch item is whether Senate draft language includes any carve-out for event contracts, or whether gaming lobbyists succeed in forcing a blanket exclusion. Traders will also be watching for reaction from exchanges and prediction-market operators, who could face a narrower US product set if the political pressure sticks.