Tribal Gaming Group Opposes Revised CLARITY Act

A major tribal gaming trade group is urging US senators to vote against the latest version of the CLARITY Act, warning it could reshape how prediction-style betting products tied to sports and casino outcomes are treated under federal commodities rules.

The Indian Gaming Association (IGA) said revisions to the 630-page crypto bill still don’t protect tribal gaming rights. The updated proposal was unveiled Thursday by Senator Cynthia Lummis (R-Wyo.), who chairs the Senate Banking Electronic Assets Subcommittee, and it arrived just ahead of a procedural Senate vote scheduled for Tuesday.

That vote would decide whether lawmakers can begin formal debate and consider amendments. If it fails to gain enough support, the measure could stall or die before Congress leaves Washington ahead of November’s midterm elections.

Lummis said the new draft includes more than 114 changes sought by Democratic senators and also revises rules covering decentralized finance (DeFi) and digital assets. One set of changes responds to concerns involving prediction markets: the bill now restricts its DeFi provisions to certain digital commodity trades. Lummis said the intent was to ensure the bill doesn’t inadvertently alter rules for prediction market contracts.

The IGA said those adjustments don’t resolve its main objections. Chairman David Bean said the group will still oppose the revised legislation, arguing it would significantly expand the Commodity Futures Trading Commission’s (CFTC) authority without clear boundaries protecting tribal and state gaming laws. The IGA pointed to prediction market platforms such as Kalshi and Polymarket offering contracts tied to sports events and casino-related outcomes as a key risk area.

The group wants explicit language stating federal commodities legislation cannot supersede state or tribal gaming laws, including the Indian Gaming Regulatory Act (IGRA). It also wants designated contract markets (DCMs) barred from offering contracts based on sports betting or casino games. Bean called the bill’s potential passage the biggest threat to tribal sovereignty the association has seen, and the broader fight over prediction markets and gaming jurisdiction is expected to continue even if the CLARITY Act doesn’t advance this month.