US gaming industry and unions urge lawmakers to ban prediction markets from offering sports betting in crypto legislation

According to Semafor, the American Gaming Association, the Indiana Gaming Association, the AFL-CIO Hotel and Gaming Industry Council, and UNITE HERE have sent letters to legislators, requesting that prediction markets such as Kalshi be prohibited from offering sports betting services in crypto legislation. These organizations stated that prediction markets have driven the largest gambling expansion in U.S. history over the past 18 months. The American Gaming Association claims that since early 2025, states have lost $1 billion in revenue due to prediction markets, but prediction market representatives dispute this claim.