WASHINGTON (TNND) — Congress is set to scrutinize the rapid growth of online gambling this week, from traditional sportsbooks to emerging prediction market platforms, amid bipartisan concerns about fairness and integrity.
Texas Tech University quarterback Brendan Sorsby is the latest high-profile case of an athlete involved in a betting scandal. (TNND)
Texas Tech University quarterback Brendan Sorsby is the latest high-profile case of an athlete involved in a betting scandal. Sorsby checked himself into a treatment program and admitted to placing small bets on his former team, the Indiana Hoosiers, before he eventually transferred. He’s now seeking an injunction that would allow him to play college football in 2026.
Members of Congress view his situation and other scandals in the NBA and MLB as examples fueling hearings focused on sports betting integrity. Sen. Marsha Blackburn, R-Tenn., is chairing a hearing Wednesday that will examine not only sportsbooks but also prediction market platforms.
“People are saying, ‘hey wait a minute, you’ve got a referee, this is supposed to be fair,” Blackburn said.
Asked about concerns raised by colleagues about insider trading on prediction market platforms, Blackburn said she didn’t think Congress should be involved in any sort of stock trading in general.
I think everyone is aware that there are some dangers that are thereit does have an impact on the integrity of the sports marketplace.
Concerns extend beyond sports. Suspected insiders have been accused of placing large bets on world events, including war, and profiting. A 60 Minutes report over the weekend highlighted activity on prediction markets, with watchdogs tracking connected accounts that won $2.4 million dollars betting on US military operations with an almost perfect win rate.
The rise in popularity of prediction markets, along with sports gambling apps — especially among young people — has prompted multiple bills in Congress aimed at tightening rules. Sen. Richard Blumenthal, D-Conn., and Sen. Katie Britt, R-Ala., introduced the bipartisan GAME Act that would ban digital gambling advertisements targeting minors. Other efforts include banning what kinds of wagers can be placed on prediction markets, including outlawing politics and war-related bets.
“Prediction markets need not be banned, but they need serious safeguards to stop the use of insider information, national security breaches, as well as market manipulation,” Blumenthal said.
Wednesday’s hearing is expected to include advocates for the traditional sports betting industry as well as representatives tied to prediction market platforms, with bipartisan scrutiny anticipated over how companies enforce their own fairness rules.
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