The labor organization Unite Here has urged Congress to prohibit prediction markets from engaging in sports betting and casino-like event contracts. They contend that these offerings jeopardize jobs within the regulated gaming sector and infringe upon Tribal sovereignty as well as state gambling regulations.
Gwen Mills, the President of Unite Here, emphasized in a statement, "Prediction markets are jeopardizing valuable union jobs in the gaming industry. More than 100,000 Unite Here members are employed in Tribal and commercial casinos. Their livelihoods are now at risk due to prediction markets that are conducting illegal sports betting, violating both Tribal sovereignty and state laws nationwide."
This appeal from the union coincides with lawmakers reviewing the CLARITY Act, which focuses on the structure of cryptocurrency markets. Although the bill does not specifically target prediction markets, critics suggest that clearer legal frameworks for decentralized finance could inadvertently aid prediction market operators.
As support for the CLARITY Act grows, Unite Here has called on Congress to act swiftly against prediction markets. Mills stated, "Congress must take immediate action to prohibit prediction markets from conducting sports betting and casino-style games."
The union also expressed support for the Prediction Markets Are Gambling Act (S. 4160), a bill introduced by Senators Adam Schiff, Catherine Cortez Masto, and John Curtis. Unite Here believes this legislation would reinforce the congressional intent that gambling remains under the jurisdiction of Tribal and state authorities.
Mills remarked, "As the Senate deliberates on cryptocurrency market structure legislation, it is crucial to reaffirm that gambling is governed by Tribal and state regulations."
Unite Here pointed out that regulated Tribal and commercial gaming operators have made significant investments in physical casinos and sportsbooks, generating jobs and economic advantages for local communities.
The union highlighted that casino employees have achieved higher wages, healthcare benefits, and retirement security through collective bargaining agreements, warning that the rise of prediction markets could threaten these advancements.
Mills added, "Stable casino jobs enable our members to purchase their first homes, fund their children's education, and reduce their need for second jobs to spend more time with family. We will not allow prediction markets to jeopardize our jobs and reverse our progress."
Unite Here's stance aligns with concerns raised by the American Gaming Association (AGA). Recently, AGA President Bill Miller informed a Senate subcommittee that operators of prediction markets, such as Kalshi and Polymarket, might be bypassing state gambling regulations by offering sports event contracts.
Companies in the prediction market space argue that their products are under the oversight of the Commodity Futures Trading Commission, thus being regulated at the federal level instead of by state gaming authorities.