CLARITY Act: Gaming Groups Lobby Senate To Ban Sports Betting On Polymarket, Kalshi

Gaming groups are reportedly pushing for senators to include a language in the CLARITY Act that would prohibit sports betting on prediction markets. This marks the latest issue that could pose a setback even as senators move to advance the crypto bill before the July 4 recess.

Gaming Groups Push For Prediction Markets Text In CLARITY Act

According to a Crypto in America report, national, tribal, and state gaming groups are lobbying senators to include language in the crypto bill that will ban sports betting prediction market platforms. These groups are expected to intensify their efforts this week as senators face a deadline to advance the bill.

This move from the gaming groups comes as banking groups also renew their efforts to get senators to include a broad ban on stablecoin yield in the CLARITY Act. However, as CoinGape reported, the Senate currently has its focus on other issues, such as ethics and DeFi.

Meanwhile, sources told Crypto in America that negotiations to include language banning sports betting on prediction markets such as Polymarket and Kalshi are unlikely to gain traction, as lawmakers focus on resolving outstanding issues.

As CoinGape reported, the Senate had scheduled last-minute meetings to resolve these issues and advance the crypto bill to a floor vote as the July 4 recess approaches. Senators such as Bill Hagerty have signaled they could still pass the CLARITY Act by July 4.

Meetings To Continue This Week

According to the report, member meetings and staff-level negotiations are expected to continue throughout this week. These meetings will focus on issues such as ethics, illicit finance, and merging the crypto bill with the Agriculture Committee text.

Crypto groups plan to play their part in advancing the CLARITY Act across the finish line with members of the Digital Chamber meeting with senators and staff to advocate for the bill’s passage. Digital Chamber also plans to meet with U.S. House members to discuss the crypto tax legislation, including the crypto tax discussion drafts that the U.S. House Ways and Means Committee recently released.

Amid these developments, the odds of President Donald Trump signing the CLARITY Act into law this year have dropped. Polymarket data shows a 44% chance of this happening. The odds have dropped from a recent high of around 74% when the Senate Banking Committee advanced the bill in May.