In December 2025, a prominent US legislator emphasized the need for Washington to play a more decisive role in managing the rapidly expanding sports betting sector. Senator Richard Blumenthal underscored that the diverse and fragmented state regulations are struggling to keep up with the pace of growth in gambling activities and the emergence of new betting models. Speaking to The Hill, he expressed that Congress must not remain passive as legal wagering proliferates and controversies continue to affect major sports leagues.
Blumenthal remarked that the rising volume of sports betting activities leads to two major issues: corruption and addiction. He noted, “The widespread corruption clearly indicates that the current safeguards are insufficient.” His call for federal intervention highlights the increasing difficulty in managing the lines between regulated gambling, financial trading, and entertainment. This is particularly true as products like prediction markets and micro-betting gain popularity even in states without approved traditional sportsbooks.
The existing state-led regulatory model, established after the US Supreme Court invalidated the federal PASPA ban in 2018, places the onus of regulation on individual states and tribal authorities. Currently, 39 states and Washington, DC have legalized some form of sports wagering, each with unique rules regarding licensing, advertising, bet types, and consumer protection. Leagues and operators defend this decentralized model, citing robust state monitoring on betting trends, limits, and suspicious activities, alongside league efforts in sharing integrity data and restricting certain betting markets.
However, Blumenthal and his supporters argue that recent integrity cases within Major League Baseball and the NBA demonstrate significant regulatory gaps. Some players have admitted to violating league gambling policies or manipulating their performances to favor bettors, further eroding public trust. A Quinnipiac poll referenced by lawmakers reveals that nearly a third of NBA fans suspect players or coaches are involved in illegal betting. Advocates for federal regulation view this as evidence that state rules and league policies are insufficient on their own.
Amidst this debate, prediction markets are gaining attention, evolving from niche interests to significant discussion points. Platforms like Kalshi offer “yes/no” contracts on real-world events, ranging from elections to economic data and sports-related topics. These markets operate under federal derivatives regulations overseen by the Commodity Futures Trading Commission (CFTC), not state gambling laws. The NFL has expressed concerns to the US House Committee on Agriculture about the availability of sports-linked event contracts in all 50 states, even where traditional sportsbooks remain illegal. The league is particularly troubled by contracts allowing bets on game outcomes or specific broadcast mentions, such as “concussion protocol.”
The NFL’s executive vice president for communications, Jeff Miller, highlighted in a statement that “these contracts escape the oversight of state regulatory bodies and their industry safeguards.” He urged Congress and the CFTC to implement prohibitions on certain bet types and introduce consumer and integrity safeguards before any broader legalization of sports-based event contracts. Meanwhile, the Coalition for Prediction Markets, representing key operators, argues that existing CFTC rules adequately prevent abusive trading and that prediction markets are as tightly regulated as securities exchanges. Despite these assurances, Blumenthal and other critics believe that the nationwide presence of products resembling betting necessitates federal oversight.
Concerns about addiction risks have also resurfaced, with Blumenthal and fellow Democrat Senator Cory Booker focusing on the public health implications for young adults. Booker advocates for stricter regulations on proposition bets and ultra-short-term markets, which allow wagering on nearly every game moment. He warns that constant prompts and in-play micro-bets serve as “design features” that could lead vulnerable individuals into damaging patterns unless stricter national regulations are enacted. This stance aligns with findings from academics and treatment providers who report a rise in incidents involving younger problem gamblers, many drawn in via mobile apps and social media advertising rather than traditional casinos.
Blumenthal has yet to introduce a detailed legislative proposal, but past Congressional efforts provide hints of what federal action might involve. These proposals have included ideas like national minimum standards for age verification, advertising, and responsible-gambling tools, supplementing existing state regulations. Additionally, the concept of a federal registry for approved wagers and bet types, developed collaboratively with leagues and regulators, has been suggested. This registry would help delineate when an event contract should fall under CFTC jurisdiction or be treated as gambling.
Proponents assert that a baseline federal framework would permit states to decide whether to offer sports betting, while establishing common rules for any product allowing financial stakes on game outcomes or player performances. Blumenthal’s comments contribute to a growing call for action in Washington, as sports leagues caution against prediction markets. State regulators in jurisdictions like Nevada, Illinois, Louisiana, and Washington have issued opinions that some event contracts may constitute illegal sports betting under their laws.
Simultaneously, major sportsbook brands like DraftKings, FanDuel, and Fanatics are developing prediction-style offerings, anticipating continued demand for trading-like experiences. This ongoing tension between innovation and regulation, state independence, and federal standards is poised to persist. As Blumenthal pointed out, the question confronting Congress is no longer whether sports betting will endure, but rather whether meaningful limitations can be implemented before the situation becomes irreparable.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.
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