Indian Gaming Association Escalates Opposition to Revised CLARITY Act Over Tribal Gaming Safeguards

The Indian Gaming Association has escalated its opposition to the Digital Asset Market Clarity Act, as reported by World Casino News. Revised language from Senator Cynthia Lummis does not resolve core concerns about protections for tribal gaming authority and the Indian Gaming Regulatory Act. The central issue involves prediction markets regulated by the Commodity Futures Trading Commission that could offer sports or casino-style event contracts outside established tribal and state frameworks.

The Association issued its statement on September 11. It argues the updates, focused on decentralized finance, leave unresolved the interplay between federal commodities law and existing gaming regulation. Tribal gaming generated a record $43.9 billion in gross gaming revenue in fiscal year 2024 from more than 500 establishments across 29 states.

Association Demands for Statutory Gaming Protections

The group seeks explicit congressional language that federal commodities law does not preempt tribal gaming laws, state gaming laws, or the Indian Gaming Regulatory Act, which has governed tribal gaming since 1988. It also calls for barring designated contract markets from listing contracts tied to sports betting or casino games. The Association views the legislation as the largest expansion of CFTC authority since the Dodd-Frank Act of 2010.

David Z. Bean, Indian Gaming Association Chairman, stated: “We want to make it absolutely clear that Indian Country is opposed to this version of the CLARITY Act. While we appreciate that Senator Lummis has acknowledged the legitimate concerns raised by Tribal Nations, the proposed changes do not address the fundamental concerns of Indian Country.” Enactment without the requested protections would represent one of the greatest threats to Tribal sovereignty in a generation.

Platforms such as Kalshi operate as CFTC-regulated designated contract markets. Polymarket has pursued a regulated path into the US market. Critics contend certain event contracts closely resemble conventional sports wagers that should remain under tribal and state gaming rules.

The Legislative Path Ahead for Sovereignty Protections

Senator Martin Heinrich of New Mexico voted against advancing the bill on September 15. He plans to introduce an amendment with an IGRA and tribal-state compact savings clause that would prevent CFTC-registered entities from listing prediction contracts resembling sports bets or casino-style gaming products.

Heinrich said: “The legislation we voted on today undermines Tribal sovereignty and states’ police powers. And it directly threatens Tribes’ gaming revenues, which would mean less government services funding across Indian Country. That’s a lose-lose.” He previously led a July letter on the issue, backed by the Association and multiple tribal governments.

The dispute leaves open whether digital asset legislation will incorporate these targeted exclusions. Absent such provisions, conflicts between prediction market operations and tribal gaming frameworks established after the 2018 Murphy v. National Collegiate Athletic Association decision appear likely to persist.

Reporting: World Casino News

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