Tribal Leaders Sound Alarm over Sweepstakes and Sports Prediction Markets

Tribal leaders gathered in Washington this week to discuss the opportunities and challenges facing Indian gaming. Such activities continue to be an effective economic development tool for tribal governments, generating a steady source of income for their communities. Gambling revenue is crucial for essential services, including health clinics, schools, housing, and elder care.

Tribes Argue That Prediction Platforms Sidestep Existing Compacts

David Bean, chairman of the Indian Gaming Association, was a key figure during Tuesday’s National Congress of American Indians Executive Council meeting. He drew attention to recent positive developments in tribal gaming. Tribal operations generated $43.9 billion in revenue in 2025, a $2 billion increase from the previous year. The industry currently provides nearly 700,000 jobs and contributes over $19 billion to state and federal authorities.

However, much of Bean’s attention focused on what he considers rising threats. Illegal sweepstakes operators and sports prediction markets have moved aggressively into all 50 states, often without state gaming licenses or tribal agreements. Bean warned that these platforms are exploiting gaps in federal law while leveraging new technology to offer what are, in practice, gambling products.

Tribes and states should be deciding gambling public policy, not foreign companies exploiting loopholes.

David Bean, Indian Gaming Association chairman

Prediction market platforms operating under the oversight of the Commodity Futures Trading Commission (CFTC) argue that their sports-related contracts are financial instruments, not bets. Tribal leaders reject that assertion, contending that contracts tied to game outcomes are often indistinguishable from wagering. Leaders fear that prediction markets could sidestep the Indian Gaming Regulatory Act, eroding tribal authority.

Bean Urged for a United Front

Other industry groups, such as the American Gaming Association, have echoed the tribes’ concerns. They claim that prediction markets bypass age restrictions, responsible gaming safeguards, and state oversight mechanisms that control regulated sportsbooks. Tribes fear that such unfair competition could siphon billions in revenue away from Indian gaming and threaten vital sources of community funding.

Legal proceedings are already underway. The IGA and 16 tribes have filed amicus briefs supporting state regulators in cases against platforms such as Kalshi and Robinhood. Tribes in California have launched direct legal challenges, while a Massachusetts court recently limited Kalshi’s ability to offer certain sports contracts.

Bean asked tribal leaders to coordinate their response in Congress. The IGA and other organizations are pushing for amendments to the Commodity Exchange Act to ensure that sports wagering and casino-style gaming cannot constitute derivatives contracts. Bean acknowledged that tribal gaming could soon face significant challenges but urged unity in the fight to defend tribal sovereignty.