Prediction Markets Ban Spurs Gambling Stocks Rally
Reports of a prediction markets ban on March 23 lifted DraftKings, Entain and MGM as traders priced reduced competition from prediction platforms.
KEY TAKEAWAYS
- Bipartisan Senate bill would bar CFTC-regulated platforms from listing sports and casino-style contracts.
- The BETS OFF Act would ban prediction-market wagering on government actions and add criminal penalties.
- Traders priced reduced competition, lifting DraftKings, Entain, Flutter and MGM.
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Proposals introduced on March 23, 2026, to ban prediction markets prompted gains in DraftKings, Entain, Flutter, and MGM as investors anticipated limits on competition from Commodity Futures Trading Commission (CFTC)-regulated platforms such as Kalshi and Polymarket’s U.S. unit.
Federal Legislation and State Enforcement Shift Market Expectations
A bipartisan Senate bill introduced by Sens. Adam Schiff (D-Calif.) and John Curtis (R-Utah) would bar CFTC-regulated entities from listing contracts tied to sporting events and offering casino-style games, including slot machines, video poker, blackjack, and bingo. The legislation specifically targets platforms like Kalshi and Polymarket’s U.S. operations. This marks the first bipartisan Senate effort focused on regulating sports-linked prediction-market wagering.
Separately, the BETS OFF Act, introduced March 17 by Sen. Chris Murphy (D-Conn.) and Rep. Greg Casar (D-Texas), aims to ban prediction-market wagering on government actions, terrorism, war, assassination, and other controllable events. It would amend federal gambling laws to block payments to offshore platforms and impose criminal penalties. The bill counts Sen. John Hickenlooper (D-Colo.) and Reps. Yassamin Ansari (D-Ariz.), Gabe Amo (D-R.I.), and Rashida Tlaib (D-Mich.) among its supporters. Sen. Murphy said in a March 17 press release, "There’s no getting around the fact that any prediction market where somebody knows or controls the outcome of a bet is ripe for corruption."
State enforcement has complemented these federal efforts. On March 17, Arizona filed criminal charges against Kalshi, accusing it of operating an unlawful gambling business. Three days later, Nevada obtained a temporary restraining order barring Kalshi from offering event-based contracts tied to sports, elections, and entertainment, restricting some of the platform’s active listings.
Together, these federal proposals and state actions have narrowed the operating window for prediction-market entrants. Market participants interpreted this as reducing competition for established gambling operators, driving a sector rotation toward companies like DraftKings, Entain, Flutter, and MGM.
Both bills remain at the introduction stage in Congress. Lawmakers advancing them described the measures as closing legal and integrity gaps in prediction-market wagering. The combination of targeted legislative language and active state litigation has reshaped investor expectations about competition in sports and casino wagering.
No recent SEC filings, press releases, or regulatory notices have been reported from Entain (PDYPF) in the past 72 hours.
