Tribal Gaming Group Seeks Betting Safeguards in CLARITY Act

The California Nations Indian Gaming Association has urged Senate Majority Leader John Thune and Minority Leader Chuck Schumer to avoid bringing the CLARITY Act to a vote on Tuesday unless it resolves a loophole in prediction markets and maintains federal, state, and tribal gaming regulations. Tribal leaders argue that prediction markets are a form of gambling and seek safeguards in any digital asset market bill.

The CLARITY Act, which would establish a new regulatory framework for cryptocurrencies and digital assets, is set for a cloture vote on Tuesday, requiring 60 votes to overcome a filibuster. Currently, the Senate has 53 Republican seats, meaning bipartisan support is needed for passage. The bill, which the Senate Banking Committee approved in May, has stalled as leaders struggle to secure the necessary votes.

Critics, including the CNIGA, argue that the revised version of the bill expands the CFTC's authority without clearly delineating tribal and state gaming law boundaries, raising concerns about state gaming oversight. Tribal leaders view prediction markets as a threat to their self-governance and the revenue that supports vital services like health care, education, and cultural preservation programs.

They are demanding either the closure of the prediction-market loophole and preservation of gaming protections, or the cancellation of the vote altogether.