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Lawmakers in Congress are weighing bills that would require state approval for certain event contracts or outright prediction market bans, according to a Law.com commentary by Abhishek (Abhi) Kambli.
The proposals come as prediction markets face pressure from both states and Congress. Product regulation is the primary issue here.
States seek gambling-law authority over exchanges
Certain states want to treat exchanges operating under federal derivatives supervision as gambling businesses. Those exchanges would then be subject to state gaming laws.
That position puts state gaming regulation at the center of a dispute over oversight of prediction markets. Kambli argues these markets belong under federal law rather than state gambling rules.
Congressional proposals challenge the federal framework
Kambli’s argument rests on the premise that Congress anticipated controversial event contracts and empowered a federal regulator to address them.
The commentary frames the legislative debate as a choice. The question is whether to retain that framework or replace it with categorical bans or a patchwork of state gaming regulation. Lawmakers are weighing prediction market bills that would either require state sign-off for certain event contracts or prohibit them outright.
Source: As reported by Law.com.
