Calci has sparked a billion-dollar dispute over the regulation of sports betting as trading activity on its platforms continues to surge.
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- Gaming and tribal groups have urged the Senate to block sports-related forecasting contracts through the CLARITY Act.
- The American Gaming Association estimates that prediction markets have cost states about $1.08 billion in tax revenue.
- Kalshi’s cryptocurrency futures platform generated more than $5.5 billion in volume within two weeks of its launch.
According to A a report By Semafor A coalition that includes the Indian Gaming Association, American Gaming Association, and labor organizations has urged the U.S. Senate to add language to the CLARITY Act that explicitly prohibits the offering of sporting event contracts and casino-style event contracts through prediction market platforms.
In a letter to lawmakers, the groups argued that sports betting should remain outside the CFTC’s jurisdiction and remain subject to existing and tribal regulatory regimes.
The coalition said prediction markets enabled what it described as the largest expansion of gambling in U.S. history over the past 18 months without direct legislative approval.
The dispute arises as Calci continues to expand beyond its original business in the prediction market.
Earlier this week, the company It has been detected The perpetual futures products generated more than $5.5 billion in trading volume within two weeks of launch. The platform currently offers 11 perpetual futures contracts linked to cryptocurrencies and is discussing additional products with regulators.
Gaming groups are challenging federal oversight of sports contracts
Pressure from gaming regulators has increasingly focused on the CFTC’s position that prediction markets fall under federal commodities regulation. Under Michael Selig, the agency did just that Supported Platforms like Kalshi and Polymarket are involved in legal disputes involving state gaming regulators.
In their letter, the organizations argued that the CFTC was established to oversee commodity and derivatives markets rather than sports betting. They claimed the agency lacked the operational framework and expertise needed to regulate sports betting nationwide, particularly in areas already controlled by state and tribal authorities.
Financial concerns also became part of the discussion. Data The American Gaming Association estimates that state gaming authorities have lost nearly $1.08 billion in tax revenue since prediction market platforms began offering contracts for sports-related events.
Meanwhile, lawmakers continue to negotiate the final form of the council The law of claritylegislation designed to transfer parts of digital asset regulatory authority from the Securities and Exchange Commission to the Commodity Futures Trading Commission (CFTC). Although the bill passed the House of Representatives in July 2025, discussions on stablecoin yield products, ethics provisions, and tokenized shares have delayed final approval.
Calci expands cryptocurrency derivatives despite legal uncertainty
As the political battle intensifies, Calci has continued to add products related to digital assets. Following regulatory approval of its BTCPERP contract on May 29, the company launched CFTC-certified Bitcoin futures in the US and later expanded into XRP and Solana contracts.
The contracts allow traders to maintain their positions below expiration dates while using financing payments designed to keep prices in line with the underlying spot markets. Although the structure can support continuous trading activity, leverage may magnify losses during periods of severe market volatility.
Additional deposits including Dogecoin, Shiba Inu, Stellar, Hedera, and Hyperliquid’s HYPE have also progressed through regulatory reviews, suggesting that Kalshi’s lineup of crypto derivatives may continue to grow.
Legal observers cited in the Semaphore report believe the conflict between federal and state regulators could eventually reach the US Supreme Court.
This possibility stems from competing interpretations of the court’s 2018 Murphy v. National Collegiate Athletic Association ruling, which gave states authority over sports gambling, while CLS, PolyMarket, and the CFTC assert that event contracts offered on prediction market platforms qualify as federally regulated swaps.
