Federalized Illegal Sports Betting
Over the past year, prediction markets have introduced unregulated sports betting nationwide. This rapidly growing industry threatens tribal nations’ and states’ sovereignty, governance and economic stability while exposing consumers to significant risks.
What Are Prediction Markets?
Prediction markets (also called event contracts) are online platforms where people “trade” on the outcomes of real-world events. Companies like Kalshi and Polymarket offer these services through apps accessible anywhere in all 50 states, including Washington. Although presented as “event trades” or “financial derivatives”, these platforms allow for sports betting while bypassing state gambling laws.
The real reason this industry is exploding is simple – there’s no federal oversight. The Commodity Futures Trading Commission (CFTC) has not enforced rules that prohibit using commodity markets for gambling. As a result, we now have unregulated, nationwide online betting.
Why This Matters
Prediction markets are dangerous for consumers, communities and the people we love.
1. Consumers are unprotected
-
- With prediction markets, there are no betting limits or payout guarantees, no background checks on those accessing your financial information and no help for people struggling with addictive behavior.
- These apps are accessible to anyone with a smartphone, which creates real risks for young adults and, if protections fail, even minors.
2. Money leaves our communities
-
- Tribal governments fund essential services across Washington. Tribal gaming helps make this possible. Every dollar bet on unregulated prediction markets is a dollar pulled away from tribal communities and local jobs, with profits flowing directly to out-of-state or offshore companies.
- If left unchecked, prediction markets could undermine tribes’ incredible economic impact in the state: more than 52,000 jobs, $7.4 billion added to the state economy and $1.9 billion paid to employees in wages and benefits.
3. Washingtonians didn’t choose this
-
- Tribal gaming is carefully regulated and limited in Washington. In fact, we have some of the nation’s strictest anti-gambling laws, criminalizing the knowing transmission and reception of gambling information via the Internet.
- Another way we have carefully limited gaming is by limiting sports betting to tribal properties.
- Our state has been deliberate about expanding gambling to protect vulnerable populations and ensure proceeds benefit people and communities in Washington.
- Gambling via prediction markets bypasses these safeguards and will hurt our state.
Do we really want unregulated gambling anywhere, for anyone, at any time?
4. Sovereignty and laws matter
-
- Prediction markets directly interfere with tribal and state governments’ sovereign right to regulate gaming within their territories.
- They also specifically violate provisions of Tribal-State gaming compacts.
Join Us
Washington tribes have worked with the state to build safe and effective regulated gaming system that benefits our people and all of Washington. We won’t stand by while tech companies exploit legal loopholes to undermine that progress.
We need your help. Join forces with WIGA and protect what we’ve built together.
Email info@washingtontribes.org to learn more.