Senate panel hears testimony on online sports betting, prediction markets

Law Senate panel hears testimony on online sports betting, prediction markets May 20, 202611:01 PM ET By  Alana Wise A Senate subcommittee lawmakers on Wednesday questioned sports betting industry officials during a hearing focused on recent cheating scandals, companies' marketing tactics and regulatory battles. Mariam Zuhaib/AP hide caption toggle caption Mariam Zuhaib/AP U.S. lawmakers grilled representatives of sportsbook and prediction market companies about their aggressive marketing tactics and the cheating allegations that have plagued sports leagues in recent months, as advocates for more stringent regulation drove home the pitfalls of legalized gambling. The Senate Commerce subcommittee hearing on Wednesday comes as athletes, from college basketball to the major leagues, face accusations that they rigged games for financial gain, and as states try to put guardrails on prediction markets. Committee chair Ted Cruz (R-Texas.) raised two key questions before the panel: "First, in a world where sports betting exists, how do we preserve the integrity and authenticity of the sports that we love? And second: Are prediction markets operating within the law, or are they defying the law and improperly infringing on state sovereignty?" he said. Sponsor Message Cruz pointed to recent high-profile instances of alleged game tampering, including two MLB pitchers accused of taking bribes in exchange for adjusting their own throws. He also noted the cancellations of UFC fights due to suspicions of match fixing. "These incidents sow doubt in the minds of fans," he said. "That is why sports leagues, and casinos, and regulators have to work together to identify, to investigate and to root out manipulation." Other lawmakers questioned the advertising techniques of prediction market companies, such as the popular Kalshi and Polymarket platforms. The fast-growing platforms allow anyone 18 and older to legally bet on topics as benign as phrases a particular celebrity might mak...