Marcus C. Evans Jr.
January 29, 2026
The Honorable John Boozman Chairman, Committee on Agriculture, Nutrition and Forestry 555 Dirksen Senate Office Building Washington, D.C. 20510
The Honorable Amy Klobuchar Ranking Member, Committee on Agriculture, Nutrition and Forestry 425 Dirksen Senate Office Building Washington, D.C. 20510
Lonnie Edgar
Tim Storey
Dear Chairman Boozman and Ranking Member Klobuchar,
On behalf of the National Conference of State Legislatures (NCSL), the bipartisan organization representing the legislatures of our nation’s states, territories and commonwealths, we respectfully urge Congress to act swiftly to address the rapid growth of unregulated sports ‑ related event contracts offered by prediction markets. As you consider cryptocurrency market structure legislation or other related measures, we ask that you include language reaffirming existing law and ensuring that unregulated sports betting and casino ‑ style gambling cannot operate under the guise of “event contracts.” Prompt action is essential to uphold state authority as recognized by the U.S. Supreme Court in Murphy v. National Collegiate Athletic Association , safeguard consumers nationwide and protect the integrity of our financial markets. Prediction markets enable participants to buy and sell contracts based on the outcomes of future events, and in practice they function in ways that closely mirror legal sports wagering. Since the court’s 2018 decision, sports betting has been regulated at the state level, and 39 states have chosen to legalize it. This system has been highly effective for consumers, states, tribes and the legal gaming industry. Today, regulated gaming contributes $328 billion in economic activity, generates $53 billion in tax revenue and supports 1.8 million jobs. In states where sports betting is legal, strong regulatory safeguards are in place including robust licensing standards, anti-money laundering and Know Your Customer requirements, consumer protection tools and regular compliance audits. In contrast, several Commodity Futures Trading Commission (CFTC) ‑ registered prediction market platforms have ignored important regulatory safeguards, disregarding state gaming laws and diverting hundreds of millions of dollars in potential revenue that supports essential state and local services, including public safety, schools and infrastructure. Furthermore, CFTC regulations, adopted under the Commodity Exchange Act, explicitly prohibit contracts involving gaming or any activity unlawful under state law. Thirty ‑ nine state attorneys general have made it clear that these sports ‑ related event contracts violate their state laws.
ncsl.org | @NCSLorg
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