Odds Are Not In Their Favor: Gaming Lobby Targets Polymarket & Kalshi In CLARITY Act Push 🎲

National, tribal, and state gaming groups are lobbying U.S. senators to insert language into the CLARITY Act that would prohibit sports betting on prediction market platforms, including Polymarket and Kalshi. The groups are expected to intensify their efforts this week as the Senate races to advance the crypto bill before the July 4 recess, according to a Crypto in America report.

The push from gaming associations comes as banking groups simultaneously renew their efforts to persuade senators to include a broad ban on stablecoin yield within the same legislation. Both lobbying campaigns introduce competing provisions that could complicate the bill's path forward in the narrow legislative window.

Sources told Crypto in America that the negotiations aimed at banning sports betting on prediction markets are unlikely to gain traction, as lawmakers are prioritizing other unresolved issues, including ethics matters and DeFi-related provisions. As previously reported, the Senate had scheduled last-minute sessions to work through the outstanding items before the recess deadline.

The CLARITY Act remains the central vehicle in Congress for establishing a comprehensive market structure framework for digital assets, and the addition of either the stablecoin yield restriction or the prediction market sports betting prohibition would significantly expand its scope. Senators are weighing which amendments to incorporate as they seek to deliver a finalized bill for consideration.