U.S. Senate Bill S.4060 Seeks to Ban Sports Prediction Markets, March 2026

Senators Richard Blumenthal (D-CT) and Andy Kim (D-NJ) introduced S.4060, the Prediction Markets Security and Integrity Act of 2026, in the United States Senate on March 11, 2026. The bill was read twice and referred to the Senate Committee on the Judiciary on the same date. It is currently at the introduction stage and has not been passed by either chamber of Congress.

The bill's stated purpose, set out in its long title, is to provide national safeguards to prevent abuse and fraud in online prediction markets, prevent underage use of online prediction markets, protect consumers, and return regulatory authorities and oversight of online prediction markets to States. Section 1 designates the short title as the "Prediction Markets Security and Integrity Act of 2026." Section 2 sets out congressional findings that online prediction markets offer services substantially the same as betting, wagering, gambling, and sports gambling, and that State regulators were never intended to be precluded from enforcing State gambling laws against such platforms. Section 5 provides that an online prediction market may not operate in a State unless expressly authorized under a State wagering program approved by the Attorney General under Section 6(b)(1). Section 6 establishes a State Wagering Program mechanism, requiring States to submit applications to the Attorney General and obtain approval within 180 days. Section 3(12) defines "online prediction market" as an online platform that allows agreements, contracts, transactions, or swaps between users over the outcome of non-financial events, including sports and elections.

Operators of prediction market platforms that currently accept wagers on sporting events from U.S. users face the most immediate exposure. The bill would bar any online prediction market from operating in any State absent express State authorization under an Attorney General-approved wagering program. Platforms operating under federal commodity exchange exemptions — including those relying on CFTC no-action relief — would face direct legal conflict if the bill passed, as Section 5 places the authorization gate at the State level rather than the federal level. Users in States without an approved wagering program would be cut off from sports-outcome markets on any U.S.-accessible platform. Sports organizations would gain new standing to submit suspicious transaction reports under Section 7(b)(13), and the Attorney General would issue implementing rules within 180 days of enactment under Section 4(f).

The bill has not yet been scheduled for a committee hearing and carries no companion House bill as of March 11, 2026. Its scope extends to proposition bets — defined in Section 3(13) as side wagers on parts of events not concerning the final outcome — and to microbets, defined in Section 3(9) as wagers on occurrences within an event. The bill would also establish a national self-exclusion list under Section 3(10) and Section 8, maintained under Section 554 of the Public Health Service Act. Whether the bill would preempt existing CFTC jurisdiction over event contracts under the Commodity Exchange Act, or create a concurrent enforcement regime, is an open question that the bill text does not resolve.

Prokopiev Law Group advises clients on prediction market regulation, online gaming compliance, and federal legislative developments affecting digital platforms; we maintain a dedicated partner network for U.S. federal and State-level gambling law matters and invite operators, exchanges, and market participants to contact us directly. Our work in this space covers prediction market licensing, CFTC event contract compliance, State wagering program applications, online gambling regulatory analysis, sports betting law, and digital asset platform counsel.

Source: S.4060, Prediction Markets Security and Integrity Act of 2026, 119th Congress, 2d Session; introduced March 11, 2026; referred to Senate Committee on the Judiciary March 11, 2026. Official text: https://www.congress.gov/bill/119th-congress/senate-bill/4060/text. Confirmed March 24, 2026.

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