U.S. Senator Ted Cruz is preparing legislation that would require prediction market platforms offering sports event contracts to obtain approval from state or tribal authorities, challenging the current federal approach to regulating the industry.
According to Bloomberg Law, Cruz plans to introduce the bill after the November midterm elections. The proposed legislation would target event contracts linked to gambling, including sporting outcomes.
However, the report didn’t establish whether its conditions would extend to every category of prediction market contract.
Cruz, the Chairman of the U.S. Senate Committee on Commerce, Science and Transportation, has questioned whether prediction market platforms that offer sports event contracts comply with existing gambling laws.
