Key Takeaways
- The Indian Gaming Association has urged Native American tribes to pressure senators into voting against the CLARITY Act.
- The organization says the legislation could strengthen sports prediction markets without preserving tribal gambling laws.
- Its intervention places Kalshi and Polymarket at the center of the crypto bill.
The Indian Gaming Association has urged senators to reject the CLARITY Act.
They warned that the crypto legislation could threaten Native American control over gambling and one of tribal governments’ most important sources of revenue.
In an urgent action alert issued ahead of today’s Senate vote, the association argued that the latest version fails to address the expansion of sports- and casino-style contracts through federally regulated prediction markets.
It described the legislation as potentially the “greatest threat to Tribal sovereignty in a generation.”
What Is Tribal Gaming?
Tribal gaming refers to casinos and other gambling operations owned or regulated by federally recognized Native American tribes.
Tribes possess certain sovereign governmental rights within the United States.
The Indian Gaming Regulatory Act of 1988 established the federal framework governing gambling on tribal lands.
Tribal governments use gambling income to support employment, infrastructure, education, and social services in their communities.
The National Indian Gaming Commission reported that tribal gambling generated a record $43.9 billion in gross gaming revenue during the 2024 financial year.
More than 500 tribally owned and licensed gaming establishments were active across 29 states.
Why Is a CLARITY Act Affecting Tribal Casinos?
The CLARITY Act is intended to establish how the SEC and CFTC divide responsibility for crypto.
However, the legislation also contains provisions affecting the CFTC’s authority and transactions involving digital commodities.
This matters as prediction market Kalshi operates as a CFTC-regulated designated contract market. Polymarket has also pursued a regulated route into the US market.
Prediction exchanges describe their products as event contracts, but critics argue the experience can look almost identical to placing a sports bet.
Traditional sportsbooks must generally secure licenses in every state where they operate.
Tribal casinos and sportsbooks may additionally be governed by federal legislation and tribal law.
Prediction exchanges instead argue that federal commodities regulation permits them to offer event contracts across state boundaries.
This has produced a growing series of legal disputes between prediction-market companies and tribal organizations.
Association Targets Kalshi and Polymarket
The Indian Gaming Association claims the CLARITY Act would produce the largest expansion of CFTC authority since the Dodd-Frank Act of 2010.
It alleges that the CFTC is already allowing gambling to occur through platforms such as Kalshi and Polymarket despite objections from state and tribal authorities.
The association therefore wants lawmakers to add language confirming that the federal commodities law does not override:
- State gambling legislation.
- Tribal gaming laws.
- The Indian Gaming Regulatory Act.
- Other relevant federal gambling restrictions.
It also wants designated contract markets prohibited from listing contracts based on sports betting or casino games.
Without those protections, the group fears prediction platforms could continue expanding into sports while avoiding the licensing and taxation requirements imposed on tribal casinos.
Latest Changes Fail to Satisfy Indian Gaming Association
Senator Cynthia Lummis released revised CLARITY Act language on Sept. 10, limiting certain DeFi provisions to spot and cash digital-commodity transactions.
Her office said the change addressed tribal concerns about the legislation’s potential impact on prediction markets.
The Indian Gaming Association rejected that, however, arguing that the amendments did not expressly protect tribal or state gambling authority.
It has encouraged member tribes to contact senators whose votes could prove influential and to urge them to vote against the bill.
What Happens in Today’s CLARITY Act Vote?
The Senate is scheduled to vote at 2:15 p.m. ET on Sept. 15 for the motion to proceed to the CLARITY Act.
This is not a vote on final passage. Instead, senators will decide whether to advance the legislation toward formal debate.
Supporters need 60 votes to clear the procedural threshold.
Failure would severely damage the bill’s prospects of being enacted in 2026, although supporters could theoretically revise the proposal and attempt to revive it later.
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
