Democratic Sen. Adam Schiff warned Tuesday that federally regulated prediction markets are rapidly blurring into unregulated sports gambling, arguing the current system threatens state sovereignty, overwhelms federal regulators, and exposes retail traders to sophisticated insiders and algorithmic firms.
Speaking at a Brookings Institution event in Washington, Schiff said his concerns escalated after congressional hearings on sports betting and prediction markets convinced him the distinction between the two had become increasingly artificial.
“If I bet on the (Buffalo) Bills game using a prediction market, is that a sports bet?” Schiff recalled asking during an earlier Senate hearing. “It doesn’t seem very complicated to me.”
