The American Gaming Association and the Indian Gaming Association recently submitted a letter to Congress requesting lawmakers take action against prediction market platforms that are cannibalizing sports betting revenue across the nation.
Unlikely Allies
The American Gaming Association (AGA) and the Indian Gaming Association (IGA) are often at odds with each other.
The former advocates for commercial casinos and mobile sportsbooks, while the latter protects the interests of gaming tribal nations whose sovereign status often allows those tribes access to gaming platforms otherwise forbidden in several markets.
However, a common enemy often produces unlikely allies, and, in this case, that adversary is prediction markets like Kalshi, Polymarket, and Crypto.com.
Both organizations have submitted a joint letter to Congress, asking legislators to take “timely congressional action” to ban sports-event contracts offered by U.S. Commodity Futures Trading Commission-regulated prediction market platforms.
The letter blames a laissez-faire approach by the CFTC toward prediction markets dealing in sports event contracts that has led to the unchecked growth in the sector, stating the prediction platforms have been “exploiting regulatory inaction by the Commodity Futures Trading Commission.”
Legal battles have ensued at the state and federal levels, but the prediction markets have thus far prevailed enough to allow them to continue to offer sports betting prediction contracts in all 50 states, including those that have not yet launched licensed sports betting.
Data Dump
Eilers & Krejcik, a California-based gaming industry research firm, published a December, 2025, report on the impact of U.S. Prediction Markets in the sports events category, asserting that the rapidly growing sector could ultimately generate as much as $435 billion from that market, depriving the state licensed sportsbooks from that revenue.
“Prediction markets could become an important catalyst for reshaping both the betting and trading industries, and may increasingly blur the line between the two,” the Eilers & Krejcik report summarized in its 32-page report. “But myriad patches of risks, unknowns, and uncertainties are strewn across the path from here to there.”
The mobile sportsbooks’ diminished sports betting revenue, from which states levy taxes, adversely impacts funding for education, infrastructure, and whatever other social projects directly derive financial benefits from those profit streams.
It should be noted that two of the nation’s leading mobile sportsbooks, DraftKings and FanDuel, have joined the prediction market industry in launching their own prediction markets. However, both DraftKings and FanDuel have declared their refusal to operate in states that have already introduced or are about to introduce sports betting within their jurisdictions.
