Tribal Leaders Raise Concerns Over Sweepstakes and Sports Prediction Markets
The Importance of Indian Gaming for Tribal Communities
This week, tribal leaders convened in Washington to address both the opportunities and challenges within Indian gaming. Tribal casinos and related gambling ventures remain a vital economic lifeline, providing consistent revenue streams that support essential community services such as healthcare clinics, educational institutions, housing programs, and elder care facilities.
Tribes Voice Concerns Over Prediction Market Platforms
David Bean, chairman of the Indian Gaming Association, played a significant role during the National Congress of American Indians Executive Council meeting on Tuesday. He highlighted the robust growth of tribal gaming operations, which reached $43.9 billion in revenue in 2025, marking a $2 billion increase from the previous year. The industry supports nearly 700,000 jobs and contributes more than $19 billion to state and federal budgets annually.
Despite these successes, Bean expressed serious concerns about the rise of illegal sweepstakes operators and sports prediction markets. These entities have expanded aggressively across all 50 states, frequently operating without state gaming licenses or agreements with tribal governments. Bean emphasized that such platforms exploit loopholes in federal regulations and employ advanced technologies to deliver gambling products that circumvent existing laws.
Tribes and states should be the ones setting public gambling policies, not foreign companies exploiting legal gaps.
David Bean, Indian Gaming Association Chairman
Prediction market companies, supervised by the Commodity Futures Trading Commission (CFTC), maintain that their sports-related contracts are financial instruments rather than bets. Tribal leaders, however, challenge this view, pointing out that these contracts closely resemble traditional wagers. There is growing apprehension that such platforms could bypass the Indian Gaming Regulatory Act, undermining tribal regulatory authority and sovereignty.
Calls for Unified Action Against Emerging Threats
In addition to tribes, other organizations like the American Gaming Association have voiced shared worries. They argue that prediction markets often avoid essential protections such as age restrictions, responsible gaming standards, and state regulatory oversight which apply to licensed sportsbooks. Tribes fear this unfair competition might divert billions in revenue away from Indian gaming, jeopardizing crucial funding for community programs.
Legal battles are already in progress. The Indian Gaming Association and 16 tribes have submitted amicus briefs supporting state regulators combating platforms such as Kalshi and Robinhood. Tribal entities in California have initiated direct lawsuits, and a Massachusetts court recently imposed limits on Kalshi’s sports contract offerings in the state.
David Bean urged tribal leaders to unify their efforts in Congress to address these challenges. The Indian Gaming Association and allied groups advocate for amendments to the Commodity Exchange Act that would clearly define sports wagering and casino-style gaming as ineligible to be classified as derivatives contracts. Acknowledging the formidable obstacles ahead, Bean stressed the importance of solidarity to protect tribal sovereignty and the integrity of tribal gaming.
