STOP Corrupt Bets Act Would Ban Prediction Market Wagers on Sports, Elections, and War — What the Bill Actually Does

A new federal bill introduced in Congress in June 2026 would ban prediction market contracts tied to sporting events, elections, war, and government actions, representing the most significant federal attempt yet to restrict the rapidly growing sector. The STOP Corrupt Bets Act targets platforms such as Kalshi, Polymarket, and others that allow users to trade event contracts on real-world outcomes, arguing these products function as unregulated gambling and pose integrity risks, particularly when connected to sports. The bill has injected fresh urgency into an already heated debate between state gambling regulators and federally regulated prediction market platforms over who has jurisdiction to govern these products.

The jurisdictional battle has been intensifying throughout 2026. The Commodity Futures Trading Commission has asserted exclusive federal jurisdiction over prediction market products, filing lawsuits against multiple states including Minnesota, New York, Wisconsin, and Illinois that have moved to restrict or ban the platforms under state gambling law. Proponents of federal regulation argue that prediction market contracts are financial derivatives that fall squarely within the CFTC’s remit, while state regulators and law enforcement officials contend that any product where users wager on the outcome of a sporting event is gambling and belongs under state authority.

Broad Scope of the Proposed Prohibition

According to reporting and analysis of the bill’s text, the STOP Corrupt Bets Act would prohibit prediction market wagers on a wide range of categories including whether a person makes a particular statement, outcomes of athletic events or games of skill, card and dice games, war and natural disasters, federal and state elections, legal proceedings, weather events, deaths or assassinations, and popular culture events including award shows. The breadth of the proposed prohibition closely mirrors the language used by Minnesota when it became the first state to ban prediction markets, with Governor Tim Walz signing legislation in May 2026 that made the products illegal beginning August 1 pending ongoing legal challenges.

Industry response has been swift and aggressive. Kalshi filed suit against Minnesota within hours of that state’s law being signed, arguing the legislation is preempted by federal law and that the CFTC’s exclusive jurisdiction over event contracts should prevent state interference. The company has also sued New York, where Attorney General Letitia James filed separate actions against Coinbase Financial Markets and Gemini Titan for allegedly operating unlicensed prediction market platforms in violation of state gambling law. Polymarket promo code and Coinbase have both faced regulatory challenges as the national patchwork of enforcement actions continues to evolve.

What It Means for Bettors and the Industry

The STOP Corrupt Bets Act’s ultimate fate will depend heavily on how Congress responds to the broader prediction markets debate, which has also drawn in the Trump administration. President Trump has publicly endorsed prediction markets as legitimate financial products and backed CFTC oversight, framing state restrictions as overreach. If the federal bill advances, it would represent a direct contradiction of the administration’s stated position and could force a floor fight between supporters of expanded prediction market access and those focused on sports integrity protections. Bettors who have been using Kalshi or Polymarket for sports contracts should monitor the bill’s progress closely, as its passage would effectively shut down sports event contracts on those platforms nationwide. For a deeper look at the legal landscape, are prediction markets legal breaks down the current state-by-state picture.