Two U.S. senators are set to introduce bipartisan legislation that would prohibit Commodity Futures Trading Commission-regulated prediction-market platforms from offering contracts tied to sporting events, The Wall Street Journal reported. 

The bill, backed by Senators Adam Schiff, a California Democrat, and John Curtis, a Utah Republican, would apply to CFTC-regulated entities including Kalshi and Polymarket’s U.S. platform, the Journal reported. The measure would also ban so-called casino-style gaming contracts, including those tied to slot machines, video poker, blackjack, and bingo.

“The CFTC is greenlighting these markets and even promoting their growth,” Schiff told the Journal. He said Congress needed to close what he described as a backdoor that bypasses state consumer protections, infringes on tribal sovereignty, and generates no public revenue. Curtis said the contracts expose young people to addictive sports betting and casino-style gaming that should remain under state, rather than federal, control, according to the report.

The proposal marks the first bipartisan Senate bill aimed at regulating prediction markets, the Journal said. The platforms currently offer binary wagers on a wide range of topics, from politics and weather to pop culture, but much of their activity is concentrated in professional and college sports, putting them in competition with gambling operators such as FanDuel and DraftKings.

Some U.S. professional sports leagues remain skeptical about prediction markets and their ability to identify suspicious activity that could expose games to manipulation or betting with insider information, the newspaper said.

Nevada won a temporary restraining order on Friday blocking Kalshi from offering sports-, election- and entertainment-related event contracts in the state, according to the Journal. Earlier in the week, Arizona filed criminal charges against Kalshi’s parent companies, accusing them of operating an illegal gambling business without a license.

States including Massachusetts and Michigan have also sued Kalshi, the report said, while Polymarket filed suit against Michigan earlier this month seeking to stop the state from enforcing gambling laws against its platform.

On Monday, Polymarket disclosed that it had updated its rules to clarify that users cannot exploit stolen confidential information, wager with illegal information, or bet if they can influence the outcome of an event, according to Bloomberg. 

Read more at The Wall Street Journal