During a recent hearing, David Z. Bean, Chairman of the Indian Gaming Association (IGA), emphasized the need for Congress to take decisive action on three critical issues to ensure that decisions regarding sports wagering remain under the jurisdiction of tribal and state governments.
Bean urged lawmakers to support H.R. 7840, known as the Event Contract Enforcement Act, which aims to reinforce the current federal prohibition on sports betting conducted through prediction markets.
Additionally, he called for the CLARITY Act to be drafted in a way that explicitly safeguards the Indian Gaming Regulatory Act, tribal sovereignty, and state gaming laws by preventing sports and casino-style betting on prediction market platforms.
His final request addressed a pending proposal from the Commodity Futures Trading Commission (CFTC) that seeks to remove long-standing restrictions on gaming-related event contracts, potentially paving the way for increased growth in federally regulated online gambling.
The subcommittee hearing, titled "Examining Customer Protections and Market Integrity in Sports Event Prediction Markets," provided Bean with a platform to argue that CFTC-regulated prediction markets are operating as unregulated sportsbooks.
Representing the IGA and its member tribes across the nation, Bean asserted that the authority over sports wagering should lie with tribal nations and states, rather than federal financial regulators.
He stated, "Prediction markets have not introduced a new financial product. They are merely offering the same sports wagers available in traditional sportsbooks while bypassing the necessary consumer protections, regulatory oversight, responsible gaming standards, and local accountability mandated by tribal and state governments. No one voted for this expansion of gambling, and Congress never authorized it."
According to Bean, tribal governments invest hundreds of millions of dollars annually into gaming regulation, employing thousands of regulators dedicated to maintaining the integrity of gaming operations and protecting consumers.
This funding supports responsible gaming initiatives, stringent age verification, fraud prevention, licensing, oversight, and collaboration with federal and state agencies. He pointed out that prediction market operators evade these responsibilities while federal regulators fail to take action.
Bean highlighted that the gaming industry serves a purpose beyond just casinos, stating that it provides tribal governments with sustainable funding for essential services.
"Indian gaming is not just about casinos," he explained. "It is the economic backbone that enables tribal governments to deliver vital services to their citizens and foster opportunities in rural America. Every dollar earned through Indian gaming is reinvested into our communities."
These vital services encompass healthcare, education, housing, public safety, and infrastructure development within tribal communities.
For this reason, Bean conveyed to lawmakers that the implications extend far beyond gambling policy alone.
He remarked, "The issue before Congress today is much broader than sports betting. It is about protecting tribal sovereignty, upholding the integrity of the Indian Gaming Regulatory Act, supporting rural economies, and ensuring consumer protection, especially for young people, through the responsible regulatory frameworks that tribes and states have diligently established over decades."
Bean concluded by stating, "The discussion surrounding sports wagering has always belonged to tribal governments and states. Congress enacted the Indian Gaming Regulatory Act to acknowledge tribal authority and create a reliable regulatory framework based on integrity, accountability, and local decision-making. We respectfully urge Congress to reaffirm that framework, protect consumers, and uphold the sovereign rights of tribal nations for future generations."
Bean's testimony is part of a coordinated effort by the IGA, in collaboration with tribal governments, state regulators, national organizations, and bipartisan members of Congress.