# Curtis-Schiff Prediction Markets Are Gambling Act

## Overview
Bipartisan federal legislation introduced March 23, 2026 by Senator Curtis (R-Utah) and Senator Schiff (D-California) to explicitly prohibit CFTC-registered platforms from listing sports and casino-style prediction market contracts.

## Key Provisions
- **Purpose:** Close regulatory gap prediction markets exploit by defining sports event contracts as gambling products, not derivatives/swaps
- **Mechanism:** Codifies state gaming commissions' position into federal law, requiring state gaming licenses rather than CFTC registration for sports contracts
- **Scope:** Applies to CFTC-registered DCM platforms; does NOT explicitly address on-chain prediction markets or futarchy governance markets
- **Enforcement:** Would override CFTC exclusive jurisdiction through Congressional redefinition of regulatory category

## Political Context
- **Bipartisan sponsorship:** Curtis (Republican, Utah) and Schiff (Democrat, California) represent ideologically divergent states
- **Utah angle:** Curtis's sponsorship from non-gaming state suggests opposition broader than state revenue protection
- **Timing:** Filed three weeks after Arizona criminal charges (March 17, 2026), during peak state-federal jurisdictional conflict
- **Industry pressure:** American Gaming Association had just released $600M state tax revenue loss data

## Legislative Status
- **Chamber:** Senate bill as of late March 2026
- **House companion:** None identified as of March 2026
- **Administration position:** Trump administration has been pro-prediction market; no veto threat statement identified
- **Passage requirements:** Would need both chambers and overcome potential presidential opposition

## Regulatory Implications
- **Centralized platforms:** Would directly affect Kalshi, Polymarket (if operating as DCM)
- **Decentralized markets:** Scope limitation leaves on-chain futarchy governance markets potentially outside framework
- **Mechanism design:** Legislative threat vector that quality of mechanism design cannot address

## Timeline
- **2026-03-23** — Bill introduced by Curtis and Schiff

## Sources
- MultiState legislative tracking, March 2026
- American Gaming Association revenue loss data
- Arizona criminal charges context (March 17, 2026)