Key facts
- Gaming groups are lobbying senators to include language in the CLARITY Act that would prohibit sports betting on prediction market platforms.
- The CLARITY Act is a crypto bill that senators are trying to advance before the July 4 recess.
- Negotiations to include the ban on sports betting on prediction markets are unlikely to gain traction.
- The odds of President Donald Trump signing the CLARITY Act into law this year have dropped to 44%.
Gaming industry groups are actively lobbying U.S. senators to incorporate a prohibition on sports betting within prediction markets into the CLARITY Act. This push represents the latest challenge as lawmakers aim to advance the broader cryptocurrency legislation before the upcoming July 4 recess.
According to reports, national, tribal, and state gaming organizations are intensifying their efforts this week to persuade senators to include specific language banning platforms like Polymarket and Kalshi from hosting sports betting. This comes as banking groups are also advocating for a comprehensive ban on stablecoin yields within the same act.
However, sources indicate that negotiations to include the sports betting ban are unlikely to gain significant momentum, as the Senate's focus remains on other critical issues such as ethics and decentralized finance (DeFi). Despite these hurdles, senators like Bill Hagerty have expressed optimism about passing the CLARITY Act by the July 4 deadline.
Meetings and staff-level negotiations are scheduled to continue throughout the week, addressing topics including ethics, illicit finance, and the integration of the crypto bill with existing agricultural committee texts. Meanwhile, data from Polymarket suggests a decreased likelihood of President Donald Trump signing the CLARITY Act into law this year, with current odds at 44%, down from a recent high of 74%.