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Sen. Richard Blumenthal of Connecticut sent out letters this week to the commissioners of the NFL, NBA, NCAA, MLB, NHL and MLS requesting information related to partnerships with both sportsbooks and prediction markets.
The Democratic senator also wants each league to address how they are safeguarding sporting integrity, preventing gambling addiction and protecting athletes from abuse.
"Since the federal ban on sports gambling -- a ban supported by the leagues -- was overturned eight years ago, gambling has permeated every aspect of the game," Blumenthal wrote. "The consequences of this rampant rise of sports gambling have been accelerating addiction, threats to players and even the corruption of the game."
Blumenthal added that the growing prediction market space -- where users can trade on the yes/no outcome of events including sports -- has "only made the problem worse."
The letter comes days after the Trump Administration sued Connecticut and two other states claiming prediction markets should be permitted under the oversight of the federal government.
The three lawsuits filed April 1 on behalf of the Commodity Future Trading Commission ask federal courts to declare that states have no business regulating these kinds of financial markets.
The Connecticut Department of Consumer Protection ordered these prediction markets to immediately stop operating in the state late last year:
- Kalshi
- Robinhood Derivatives
- Crypto.com
The regulator claims these platforms pose a “serious risk” to consumers.
- Gilbert Horowitz, Gambling911.com
