The U.S. Senate Committee on Indian Affairs (SCIA) on August 4, 2026, convened a roundtable, "Tracking Prediction Markets' Exponential Growth: Tribal Implications and Beyond," to discuss growing concerns that unregulated prediction markets and event contracts pose significant threats to Tribal sovereignty, gaming revenues and consumer protections.
SCIA Chair Lisa Murkowski (R-Alaska) and Vice Chair Brian Schatz (D-Hawaii) were joined on the dais by Sens. John Boozman (R-Ark.), Tina Smith (D-Minn.), Catherine Cortez-Masto (D-Nev.), Alan Armstrong (R-Okla.), Maria Cantwell (D-Wash.) and Ben Ray Luján (D-N.M.). Sens. Murkowski and Schatz emphasized the need for meaningful government-to-government consultation with Tribal nations before the Commodity Futures Trading Commission (CFTC) finalizes its proposed rule on prediction markets, referencing a letter they recently sent to the CFTC. Witnesses from the Indian Gaming Association, National Congress of American Indians, National Tribal Gaming Commissioners & Regulators, the state of Ohio and Public Health Advocacy Institute echoed these concerns, urging the U.S. Congress to advance legislation that clearly defines event contracts as gaming, subject to existing Tribal and state regulatory frameworks.
Significant themes from the discussion included the exponential growth of prediction markets – with one private platform reporting more than 5 million monthly active users in the U.S. – and the economic harm to Tribal gaming revenues and economies. Witnesses expressed concern that regulatory gaps allow prediction markets to bypass consumer protection and overwrite years of Tribal and state regulation.
Witnesses also requested the Senate advance S. 4160, the Prediction Markets Are Gambling Act, and ensure the CLARITY Act closes regulatory loopholes in the decentralized finance (DeFi) section and that the recent CFTC proposed rule does not preempt state and Tribal law. The DeFi section of the CLARITY Act places digital assets and event contracts under the CFTC's purview and creates a potential regulatory gap if prediction markets are considered fully decentralized. The session concluded with discussions on the CLARITY Act and the sections of concern, with Sen. Boozman's office offering to discuss further text on the DeFi sections of the legislation.
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