The US Senate has scheduled a major hearing on sports betting and gaming integrity for May 20, titled “No Sure Bets: Protecting Sports Integrity in America,” marking the most significant federal legislative moment for the American gambling industry since the Supreme Court’s 2018 ruling that opened the door to state-by-state legalisation. The hearing, chaired by Senator Marsha Blackburn of Tennessee, brings together a witness list that signals the government is beginning to treat this as a structural public policy problem rather than a state-level curiosity.
The catalyst is an accumulation of high-profile scandals that have arrived in rapid succession. In a single week in November 2025, the FBI held meetings with the UFC about an allegedly rigged fight, two MLB pitchers were federally indicted for manipulating pitches to benefit bettors, and the NCAA accused six former college basketball players across three schools of participating in gambling schemes.
Miami Heat guard Terry Rozier was arrested in October for allegedly faking an injury mid-game so bettors could cash player prop bets. The indictment in the college basketball operation alone named 20 individuals alleged to have bribed 39 NCAA athletes across more than 17 Division I teams, with 29 games affected and payments to athletes ranging from $10,000 to $30,000 per instance.
Senator Ted Cruz, who chairs the full Senate Commerce Committee, framed the issue in terms that every sports fan can understand. “Fans shouldn’t have to wonder if their favorite player missed a buzzer-beater or dropped a touchdown pass because of a secret bet. Unfortunately, recent episodes have planted that seed of doubt and raised questions about whether changes are necessary to integrity in sports.” The point is a compelling one for a market that has grown to $165 billion and operates across 39 states, yet lacks any federal guardrails on the type of proposition bets or the AI-driven marketing approaches that have been linked to the most harmful consumer outcomes.
The witness list is notably inclusive of the prediction markets sector, which has itself become one of the most contentious regulatory questions of 2026. Former Congressman Patrick McHenry will represent the Coalition for Prediction Markets, sitting alongside American Gaming Association CEO Bill Miller and integrity specialists Scott Sadin of Integrity Compliance 360 and Mary Beth Thomas of the Tennessee Sports Wagering Council. The inclusion of a dedicated prediction market voice is significant because it signals Congress is treating these platforms as part of the sports wagering ecosystem rather than classifying them separately as financial instruments.
Several bills are already in play that the hearing will likely amplify. The SAFE Bet Act would establish federal minimum standards including a ban on proposition bets tied to individual college athlete performance, deposit caps at 30% of monthly income, prohibitions on credit card deposits, and restrictions on AI-driven marketing targeting vulnerable users. The Prediction Markets Security and Integrity Act of 2026 would separately ban wagering on live sporting events through prediction platforms, a provision that Kalshi and its competitors have been actively lobbying against. Whether this hearing produces legislation or primarily frames the debate, it places the entire industry on notice that Washington has moved past passive observation and into active scrutiny.
