WASHINGTON, D.C. – The U.S. Senate failed to advance the Digital Asset Market Clarity Act on Sept. 15, as tribal organizations continued to press federal officials over the regulation of prediction markets and their potential impact on tribal gaming authority.
The Senate voted 49-50 on a cloture motion to advance H.R. 3633, falling short of the 60 votes required.
The Indian Gaming Association (IGA), which had urged senators to oppose the legislation without additional protections for tribal gaming interests, welcomed the result. The organization had called for language explicitly protecting tribal sovereignty, the Indian Gaming Regulatory Act (IGRA), tribal-state gaming compacts, and tribal and state authority over gaming.
“Today, Indian Country’s voice was heard,” said IGA Chairman David Z. Bean. “The Senate did the right thing by refusing to advance legislation that could have expanded CFTC commodities authority without providing the clear protections Tribal Nations have demanded. This is an important victory for Tribal sovereignty, but it is not the end of this fight.”
IGA said it opposed the legislation because it did not clearly prohibit prediction-market platforms from offering sports betting and casino-style gambling through federally regulated event contracts or decentralized finance platforms, or expressly state that federal commodities law cannot preempt IGRA, tribal gaming laws, tribal-state compacts or state gaming laws.
The Senate vote followed a private roundtable held a day earlier between Commodity Futures Trading Commission (CFTC) Chairman Michael S. Selig and representatives of tribal organizations regarding prediction markets.
Following the meeting, the National Congress of American Indians (NCAI) and IGA reiterated their position that sports-event contracts offered by prediction market platforms constitute gaming and should be subject to existing federal, state, and tribal gaming laws. The organizations also called for formal government-to-government consultation between the CFTC and tribal Nations as the agency considers policies affecting prediction markets.
“While we acknowledge the effort that Chairman Selig took to convene Monday’s discussion, to be candid: a roundtable is not consultation,” said NCAI President Mark Macarro. “What Tribal Nations require — and what federal law mandates — is government-to-government consultation, not a listening session.”
NCAI and IGA said issues surrounding prediction markets could affect IGRA, tribal-state gaming compacts, tribal regulatory authority, and tribal economies. The organizations called for continued engagement and formal consultation on any CFTC rulemaking, guidance, enforcement policy, or other action involving sports-event contracts and gaming.
Bean said the roundtable did not resolve the organizations’ concerns about the regulatory treatment of sports-event contracts.
“These products are gaming, and where they are being offered outside federal, state, and Tribal gaming law, they are illegal gaming,” Bean said. “The CFTC must enforce the law as written and work directly with Tribal Nations before moving forward with policies that could undermine IGRA and Tribal-state compacts.”
New Jersey Attorney General Jennifer Davenport, who did not participate in the roundtable, also issued a statement supporting the tribal organizations’ position, saying prediction markets offering sports gambling were operating without complying with state and tribal gaming laws.
IGA said it will continue working with tribal Nations, Congress, state governments, and federal officials on prediction-market policy. The organization is seeking federal action that preserves IGRA and tribal-state compacts, maintains tribal and state gaming regulatory authority, prohibits federally regulated prediction markets from offering sports betting and casino-style gambling through event contracts or decentralized finance platforms, and requires government-to-government consultation on federal actions affecting tribal gaming.
“This vote gives Congress an opportunity to get this right,” Bean said. “Any future legislation dealing with digital assets, prediction markets or federal commodities law must begin with a clear principle: Tribal sovereignty is not negotiable.”
