Tribal gaming leaders are urging the U.S. Senate to amend the proposed CLARITY Act to prevent federally regulated prediction markets from offering sports and casino-style event contracts.
The Indian Gaming Association (IGA) is lobbying lawmakers during its Summer Legislative Summit in Washington, D.C. It argues that the legislation should protect existing tribal gaming rights and prevent conflicts with current federal and state gaming laws.
Tribes Propose Two Key Amendments
The IGA is requesting two changes to the CLARITY Act. First, it wants the legislation to explicitly prohibit prediction markets from offering contracts based on sports or casino-style outcomes. Second, it is seeking language confirming that the bill does not override the Indian Gaming Regulatory Act (IGRA) or other tribal, state, and federal gaming laws.
According to the association, these amendments would prevent cryptocurrency-based prediction markets from expanding gambling-style products. Moreover, such amendments would ensure compliance with established gaming regulations.
Concerns Over Tribal Gaming Rights
The CLARITY Act is designed to establish a regulatory framework for digital assets. It divides oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Although the legislation is not focused on gambling, tribal leaders argue that it could strengthen legal arguments. This would allow prediction market operators to offer sports-related contracts nationwide outside existing gaming frameworks.
The IGA said such an outcome could undermine tribal sovereignty and reduce gaming revenues that support essential public services. These public services include healthcare, education, housing, and public safety.
Legal and Legislative Challenges Continue
Tribal groups are already challenging sports event contracts in federal courts. Several California tribes have asked the Ninth Circuit to block Kalshi from offering sports event contracts on tribal lands. Meanwhile, similar legal disputes remain active in Wisconsin and New Mexico.
The legislative campaign also follows earlier efforts by the IGA and the American Gaming Association. They encouraged Congress to exclude sports betting and casino-style products from cryptocurrency legislation.
Senate negotiators continue to work on the final version of the CLARITY Act. However, several issues remain unresolved as lawmakers seek sufficient support to advance the bill before the August congressional recess.
