Tribal Gaming Leaders Urge Senators to Reject Clarity Act
Indian gaming groups are pressing US senators to vote no on the Clarity Act, H.R. 3633, a bill meant to set federal rules for digital assets such as cryptocurrency. Tribal leaders say the measure fails to stop prediction markets from operating like state-regulated gambling services.
The Indian Gaming Association and the California Nations Indian Gaming Association argue the bill leaves a major gambling loophole open. While the Clarity Act would set federal rules for digital commodities such as bitcoin, it would also expand the Commodity Futures Trading Commission’s authority over prediction markets, letting betting-style platforms sidestep the rules that apply to state-regulated casinos and sportsbooks, tribal leaders say.
Tribes want changes closing prediction market loophole
Tribal leaders want Congress to amend the bill before it advances, adding language that would bar prediction market platforms from offering sports betting or casino-style games already regulated by states and tribes.
They also want the bill to state that decentralized finance, or DeFi, cannot be used to evade state, tribal or federal gaming law. The Indian Gaming Association is instead backing the Event Contracts Enforcement Act, H.R. 7840.
Bean warns House committee of a “one-man” CFTC
David Bean, chairman of the Indian Gaming Association and a citizen of the Puyallup Tribe of Indians, testified before the House Agriculture Committee that prediction markets pose a real danger to Indian Country.
Bean said the CFTC is running as a “one-man show”: It normally has five presidentially appointed members but currently has only one, Chairman Michael Selig.
Mark Macarro, president of the National Congress of American Indians and chairman of the Pechanga Band of Indians, said prediction market platforms exploit a loophole to skirt state gambling bans, pointing to California, where sports betting is illegal but the platforms still operate.
The companies argue their products are federally protected contract swaps, not bets, raising the question of whether the Indian Gaming Regulatory Act or the Commodity Exchange Act — as amended by Dodd-Frank — should govern. Macarro said courts are already weighing in.
Kalshi faces lawsuits as lobbying dollars pile up
A letter from the Indian Gaming Association claims prediction market companies avoid local taxes and fees and use their profits to fund lobbyists and public relations firms. The companies formed the Coalition for Prediction Markets, which has hired two former members of Congress.
Kalshi, one of the largest prediction market platforms, faces lawsuits in at least 12 states, many brought by tribal nations, including in California, where tribes hold exclusive rights to casino-style gaming.
Kids using prediction apps alarms lawmakers, tribes
Lawmakers cited data showing children ages 11 to 17 have downloaded prediction market apps, tying the trend to Kalshi’s marketing. Bean said a Kalshi executive compared the contracts to financial literacy tools — a comparison tribal leaders called misleading and dangerous for young users.
According to an ICT News report, Sen. Elizabeth Warren, D-Mass., ranking member of the Senate Banking Committee, said the CFTC lacks resources to oversee the fast-growing industry. Kalshi did not respond to a request for comment.
Clarity Act stalls in Senate as recess nears
President Donald Trump has not named a permanent chairman for the National Indian Gaming Commission, a vacancy Bean said has made it harder for tribes to push back. He expects another hearing soon.
The broader Clarity Act, meanwhile, has stalled in the Senate. Senate Majority Leader John Thune has acknowledged the chamber lacks time to complete debate, amendments and a cloture vote before the Aug. 7 recess, pushing floor action into September, according to crypto.news.
The Senate Banking Committee approved its version of the bill in May by a 15-9 vote, with two Democrats joining Republicans, but those Democrats have said their support does not guarantee backing on the floor without further changes to ethics provisions governing public officials’ crypto holdings.
It remains unclear whether — or when — the bill will reach a final vote. Prediction market operators remain under CFTC oversight for now, though tribal leaders say that arrangement should not last.
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