UK Gambling Stocks Rally as US Senators Push Bill to Block Prediction Markets from Sports Betting

Senators Unveil Bipartisan Measure Targeting CFTC Platforms

On March 23, 2026, US Senators Adam Schiff, a Democrat from California, and John Curtis, a Republican from Utah, introduced bipartisan legislation designed specifically to prohibit prediction market platforms regulated by the Commodity Futures Trading Commission (CFTC) from offering sports betting contracts; this move, which zeroed in on operators like Kalshi and Polymarket, sparked immediate reactions across global markets, particularly among UK-listed gambling firms with deep US ties. The bill, still in its early stages as observers noted, aims to draw a clear line between traditional sportsbooks licensed under state gaming authorities and these newer CFTC-supervised platforms, potentially reshaping how Americans wager on athletic events. According to reports from the Wall Street Journal, the proposal emerged amid heightened regulatory scrutiny over whether prediction markets blur lines with outright sports gambling, a sector already tightly controlled at the state level following the 2018 Supreme Court decision that struck down PASPA.

What's interesting here is how the legislation carves out its focus: it targets only CFTC-regulated entities, leaving state-approved sportsbooks untouched, which experts have observed could funnel bettors back toward established players like FanDuel and BetMGM; those who've tracked similar regulatory battles know that such bills often gain traction when bipartisan support lines up, and with Schiff's history on consumer protection alongside Curtis's push for market clarity, the measure carries real momentum from day one. Data from the CFTC's own filings shows prediction markets handled millions in sports-related volumes last year alone, volumes that traditional books argue siphon revenue from taxed, regulated wagering channels.

Flutter adn Entain Lead the Charge in London Trading

UK-listed gambling stocks wasted no time responding to the news; Flutter Entertainment, the Irish-domiciled giant behind FanDuel—the top US sportsbook by market share—surged 7.6% in London trading on March 23, while Entain, parent to Ladbrokes in the UK and BetMGM stateside, climbed 6.4%, pushing their combined market caps higher by hundreds of millions in a single session. Observers point out that both companies operate massive US footprints—Flutter through its FanDuel arm dominating handle in states like New York and New Jersey, Entain via BetMGM partnerships with MGM Resorts—making them prime beneficiaries if prediction markets lose sports betting access. And turns out, the rally extended to peers; smaller names in the sector saw gains between 4% and 5%, reflecting broad optimism that the bill, if passed, would protect incumbents from upstart competition.

Take Flutter's trajectory: the company, which reported US revenues topping $4 billion in its latest quarter, has poured billions into marketing and tech to hold off challengers, so a legislative shield against prediction platforms feels like manna from heaven, especially since Kalshi launched NFL contracts last fall that drew sharp criticism from sports leagues. Entain, meanwhile, benefits through BetMGM's joint venture, where sports betting yields have stabilized amid fierce rivalry; figures from the American Gaming Association reveal traditional online sportsbooks captured 98% of the $40 billion US handle in 2025, but prediction markets chipped away at edges with lower-overhead models. People who've watched these stocks through past scares—like 2024's Illinois tax hikes—often discover that regulatory wins trigger sustained rallies, sometimes lasting weeks as details unfold.

But here's the thing: the surge didn't happen in a vacuum; London's FTSE saw modest gains overall that day, yet gambling names outperformed by wide margins, signaling investor bets on the bill's passage amid a Congress eager to clarify post-2024 election landscapes.

Decoding Prediction Markets and Their Sports Betting Foray

Kalshi and Polymarket represent the vanguard of prediction markets, platforms where users trade contracts on event outcomes—yes/no binaries on everything from elections to weather—under CFTC oversight as commodity derivatives; yet their pivot to sports, with Kalshi offering futures on Super Bowl winners or NBA champs, crossed wires with traditional sportsbooks who view it as unlicensed gambling dressed as trading. Polymarket, crypto-native and less regulated until recent scrutiny, saw explosive growth during the 2024 US election cycle, handling over $1 billion in trades, but sports contracts became the flashpoint as leagues like the NFL lobbied hard against them. Studies from the CFTC's 2025 market report indicate these platforms boast lower barriers—minimal deposits, global access—drawing in bettors who might otherwise stick to app-based sportsbooks with geofencing and age checks.

One case that highlights the tension involves Kalshi's 2025 launch of MLB playoff markets, which prompted lawsuits from state attorneys general arguing CFTC jurisdiction doesn't override gambling laws; researchers who've dissected trading data note volumes rivaled DraftKings in select events, underscoring why incumbents cheer restrictions. It's noteworthy that while prediction markets tout hedging tools for risk managers, sports bettors treat them as straight wagers, a blurring that lawmakers like Schiff aim to end with explicit bans.

How the Bill Tilts the Field Toward Legacy Sportsbooks

The proposed legislation, formally titled something along the lines of the "Prediction Market Sports Betting Prohibition Act" in early drafts, would amend CFTC rules to outright bar sports event contracts on designated platforms, directing such activity to state-licensed operators who pay taxes, fund problem gambling programs, and partner with teams; this setup, experts observe, fortifies the moats around Flutter and Entain, whose US arms already navigate 38 states with bespoke compliance. Data indicates traditional sportsbooks generated $12 billion in taxable revenue last year per AGA tallies, contrasted with prediction markets' unregulated flows that bypass those streams.

Now consider the mechanics: CFTC platforms settle contracts in cash based on outcomes, much like sports bets, but without vigorish caps or integrity fees that leagues extract from books; a ban would redirect that liquidity—estimated at $500 million annually by some analysts—straight to FanDuel and BetMGM, boosting handles already at record highs post-March Madness. Those who've studied regulatory arbitrage point to Australia's experience, where similar curbs on exchange-style betting funneled volumes to tabcorp and sportsbet, yielding 15% yield jumps; parallels abound, and with US scrutiny ramping via WSJ exposés, the bill lands at a pivotal juncture.

Yet challenges loom: prediction market backers argue First Amendment protections for event contracts, citing court wins, but bipartisan muscle from Schiff and Curtis—who've co-sponsored fintech bills before—suggests hurdles may clear faster than expected.

Ongoing US Scrutiny Sets Stage for Broader Shifts

This bill caps months of Wall Street Journal reporting on CFTC leniency toward sports on prediction sites, including leaks of internal debates over enforcement; the timing, smack in late March 2026 as MLB opens and NBA playoffs loom, amplifies stakes for stocks like Flutter, whose FanDuel app dominates in-play betting that prediction markets can't match at scale. Observers note Congress has eyed this since Polymarket's election boom, with hearings in the Senate Agriculture Committee—overseeing CFTC—probing overlaps with PASPA's legacy.

And while UK firms cheer from London, US partners like DraftKings saw sympathetic bumps of 5.2% in Nasdaq trading, underscoring cross-Atlantic linkages; Entain's Ladbrokes heritage provides diversification, but BetMGM's growth hinges on retaining monopoly-like edges in new states like Brazil-inspired expansions. It's not rocket science: clearer rules mean less disruption, more predictable yields, especially as global scrutiny—from Australia's ACMA to Canada's iGaming probes—mirrors the US push.

Conclusion

The March 23 introduction of the Schiff-Curtis bill marks a watershed where regulatory lines harden, prediction markets face sports betting exile, and traditional powerhouses like Flutter and Entain reap stock surges of 7.6% and 6.4% respectively; as CFTC platforms recalibrate and state books consolidate, data from past clampdowns suggests sustained market realignments ahead, with billions in handle poised to consolidate among licensed leaders. What's significant is the bipartisan speed—rare in divided times—and how it underscores enduring tensions between innovation and incumbency in America's $100 billion wagering arena, setting the stage for legislative votes that could redefine competition through 2026 and beyond.